ICBA renewed its call for policymakers to examine the credit union tax exemption as the number of credit union-bank acquisitions passed 100.
Latest: Following two recent deals that marked the 100th and 101st credit union acquisitions of community banks since 2003, ICBA issued a national news release noting that these purchases eliminate locally based lenders, further consolidate the banking industry, and cut regulatory safeguards.
Taking Action: ICBA continued its call for policymakers to:
- Implement an “exit fee” on these acquisitions to capture the value of the tax revenue that is lost once the business activity of the acquired bank becomes tax-exempt.
- Hold congressional hearings to review how the credit union tax exemption fuels these transactions.
- Request a Government Accountability Office study on the evolution of the credit union industry and National Credit Union Administration supervision.
Grassroots: Community bankers can continue urging Congress to hold hearings on credit union acquisitions via a customizable message to lawmakers on ICBA’s Wake Up page and its Wake Up Messaging Playbook.