When autocomplete results are available use up and down arrows to review and enter to select.
Washington, D.C. (August 19, 2024) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement after another community bank acquisition by a tax-exempt credit union:
“As credit unions increasingly exploit their federal tax exemption to acquire tax-paying community banks, the need for policymakers to re-examine their tax status is urgent. Action is needed now to preserve community banks and the communities that depend on them, ensuring the continued vitality of the relationship-based banking sector that has supported Main Street America for generations.
“Credit unions pay no tax to operate the same business that was taxable the day before once they acquire a bank. As public scrutiny of these inappropriate deals and the number of credit union purchases of taxpaying community banks have raced past record highs, policymakers must protect local communities by ending the credit union tax exemption,” Rainey said.
As more than 20% of bank deals this year have been credit unions leveraging their tax exemption to purchase banks, the media is taking note:
Axios: Why credit unions are buying banks
American Banker: Credit unions extend bank-buying spree
Credit Union Today: Citing exec pay, sports deals, 'lavish' HQs, bank group tells Congress there are new reasons to revoke CU tax exemption
Op-ed: Confessions of a credit union executive turned community banker
Op-ed: Stop letting credit unions buy community banks
About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.
As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.