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After the 20th credit union acquisition of a community bank this year—and another featuring a credit union crossing state lines to buy a community bank—ICBA said the record number of transactions is being noticed by the public and policymakers.
Details: In a national press release, ICBA President and CEO Rebeca Romero Rainey said the latest acquisition displaces trusted providers of credit in local communities. “With this year’s record number of transactions continuing to grow, it is no surprise that policymakers and the public are increasingly scrutinizing antiquated credit union policies and practices,” she said.
Attention: The growing problem of credit union regulatory inequity has recently been noted by:
The FDIC, which approved a statement of policy on bank mergers that explicitly states that additional scrutiny may be needed for deals involving credit unions.
Federal Reserve Governor Michelle Bowman, who said regulatory disparities between community banks and credit unions distort competition.
The Consumer Financial Protection Bureau, which penalized VyStar Credit Union for harming consumers through its botched rollout of an online banking system—exemplifying the risks posed by the National Credit Union Administration’s inability to examine third-party service providers.
Consumers, 61% of whom in a recent ICBA poll conducted by Morning Consult poll said Congress should investigate whether credit unions should be able to acquire banks.
Media such as Bloomberg, CNBC, Axios, and CNN, which have covered the acquisition trend and credit union practices.
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.