A proposed credit union acquisition of a community bank in Minnesota was rejected by the state’s business regulator—the latest state-level roadblock for credit unions.
Minnesota Ruling: In blocking the acquisition of Lake Area Bank by Royal Credit Union, the Minnesota Department of Commerce reportedly ruled that state-chartered Minnesota banks may be acquired only by another bank, savings bank, or trust company.
State-Level Momentum: The agency also said state-chartered banks may not transfer assets and liabilities to a credit union to consolidate or merge out of existence. It is the sixth state to do so after state policymakers in Mississippi and Nebraska enacted similar policies this year, joining Colorado, Iowa, and Tennessee.
ICBA Campaign: Meanwhile, ICBA continues running a digital campaign featuring a recently released ICBA video urging Americans to advocate congressional hearings on how credit unions are taxed and regulated.
Grassroots: Community bankers can continue urging Congress to hold hearings on the credit union tax exemption using a customizable message to lawmakers on ICBA’s Wake Up page and its Wake Up Messaging Playbook.