Members of Congress and the American public should consider why credit unions are acting like the nation’s largest banks while enjoying tax and regulatory advantages, according to a new MarketWatch opinion piece (subscription required).
Details: The editorial from Brookings Institution senior fellow Aaron Klein notes that while the difference between credit unions and commercial banks “ought to be massive,” credit unions are behaving like megabanks by paying millions of dollars per year on stadium naming rights.
More: Klein quotes National Credit Union Administration Chairman Todd Harper, who said that if he were on a credit union board, he would focus on how to lower loan prices and increase service, rather than spending money on stadium naming rights.
ICBA View: In an August news release, ICBA said a credit union leveraging its members’ deposits to spend millions on football stadium naming rights is another example of how credit unions are violating the limits established by Congress to justify their federal tax exemption.
Media Groundswell: Media outlets are increasingly taking notice of ICBA’s calls for credit union policy reforms, with recent Bloomberg, CNBC, and Axios coverage raising questions about credit union practices.
ICBA Outreach: Most recently, ICBA has called on the NCUA to curb the abuse of its subordinated debt rule, released polling showing U.S. adults increasingly support equal consumer protections for credit union customers, lauded the FDIC’s ICBA-advocated inclusion of credit unions in its merger guidance, and continued its calls for a congressional review following the latest acquisition of a tax-paying community bank.
Grassroots Resources: Community bankers can use ICBA’s Be Heard grassroots action center to call on members of Congress to hold a hearing on credit union policy. Additional resources are available on the ICBA website.
