Colorado senators strip provision permitting credit union acquisitions

Colorado lawmakers blocked a community bank-opposed legislative provision that would permit credit union acquisitions of the state’s banks.

Legislative Details: The Colorado Senate Business, Labor, & Technology Committee on Tuesday night stripped the provision from a broader banking bill. In a recent op-ed, ICBC Executive Director Michael Van Norstrand and CBA President and CEO Jenifer Waller urged lawmakers to oppose the policy change.

Outlook: Colorado community bankers continue working to ensure the provision doesn’t advance through another legislative vehicle in the days ahead. The Colorado legislative session ends Wednesday, May 8.

Related State Activity:

• Tennessee Governor Bill Lee recently signed Tennessee Bankers Association-advocated legislation clarifying that the state’s banks may only be acquired by FDIC-insured institutions after an appellate court ruled earlier this year that the state’s banks may be acquired by credit unions.

• The Independent Bankers Association of New York State and New York Bankers Association recently urged that state’s banking department to pause and analyze the first-ever acquisition of a New York bank by a credit union.