A new op-ed from Colorado community banking representatives raises concerns over acquisitions of tax-paying community banks by tax-exempt credit unions.
Details: Citing credit unions’ tax and regulatory advantages, Independent Community Bankers of Colorado Executive Director Michael Van Norstrand and Colorado Bankers Association President and CEO Jenifer Waller urged opposition to state legislation that would permit credit union acquisitions of the state’s banks.
Recent Activity: The op-ed follows a recent letter from New York banking associations urging the state’s Department of Financial Services to pause and analyze the first-ever acquisition of a New York bank by a credit union. The Independent Bankers Association of New York State and New York Bankers Association said the merger reflects unchecked credit union expansion.
Recent Polling: ICBA last month released polling showing public support for reforming credit union policies. The polling found 68% of adults say credit union customers should have the same consumer protections that banks provide.
Cease-and-Desist Push: Following Navy Federal Credit Union’s announcement that its overseas military banking program will be called “Community Bank,” ICBA recently urged regulators to issue cease-and-desist orders directing the institution not to refer to itself as a bank.
Grassroots Resources: Community bankers can use ICBA’s Be Heard grassroots action center to call on their members of Congress to hold a hearing on credit union policy. Additional resources on credit union policy are available on the ICBA website.
