Credit union data reporting exemption covered in Politico

A new Politico column draws attention to the lack of regulatory transparency at tax-exempt credit unions, particularly their exemption from federal reporting requirements on overdraft fees.

Details: Aaron Klein of the Brookings Institution said credit unions have escaped the debate on overdraft fees because of the exemption, though a 2022 California data reporting law has raised questions about their not-for-profit mission.

Regulator Pressure: Federal Reserve Governor Michelle Bowman last week said credit union acquisitions of community banks support the case for including credit unions and other nonbanks in regulatory policies on proposed bank mergers, as ICBA has advocated. Bowman’s remarks came after FDIC Vice Chairman Travis Hill last month said his agency should consider competition from credit unions and other nonbanks if it reopens its policies on bank mergers.

More on Credit Unions: Following a series of five announced credit union acquisitions of community banks, ICBA recently:

• Launched new targeted ads and a website making clear to consumers that “Something’s Wrong” with credit union policy.

• Conducted an ad campaign directing congressional offices to questions they should ask credit union executives in Washington for advocacy meetings.

• Renewed its call for Congress to act on credit union bank acquisitions.

Grassroots Resources: Community bankers can use ICBA’s Be Heard grassroots action center to call on their members of Congress to hold a hearing on the NCUA’s lax oversight. Additional resources—including state fact sheets, a messaging playbook, and a customizable op-ed—are available on the ICBA website.