Following the latest acquisition of a tax-paying community bank by a tax-exempt credit union, ICBA continued its call for Congress to eliminate the federal tax exemption for credit unions over $1 billion in assets.
ICBA Response: In a national news release, ICBA President and CEO Rebeca Romero Rainey noted the latest deal follows last year’s record number of acquisitions and is the third deal for the acquiring credit union in the past five years.
Credit Union Mission Creep: “With credit unions straying far beyond their founding congressional mandate of serving people of modest means with a defined field of membership, such as those with the same church or employer, consumers increasingly support reforms to credit union policies,” Romero Rainey said, citing recent ICBA polling conducted by Morning Consult.
Latest Media Coverage: In a new American Banker article (subscription required), ICBA’s Mickey Marshall noted that large credit unions represent just 10% of the industry but now control nearly 80% of its assets, fueled by continued exploitation of their federal tax exemption and rapid acquisitions of community banks.
ICBA View: ICBA’s “Repair, Reform, and Thrive” plan and open letter to the 119th Congress urge lawmakers to use the current debate over tax reform to address credit unions’ tax and regulatory advantages. ICBA earlier this year released a policy resolution that formally calls on policymakers to end the federal tax exemption for credit unions with $1 billion or more in assets or to establish tax parity between credit unions and tax-paying community banks.
