ICBA: Credit union tax subsidies continue driving record-high acquisitions

Following the 18th credit union acquisition of a community bank this year—and the fifth in Washington state—ICBA said Congress should address antiquated credit union policies.

Details: In a national news release, ICBA President and CEO Rebeca Romero Rainey said given the pace of acquisitions, “it should come as no surprise that policymakers and the American public are increasingly scrutinizing the shocking record amount of these deals.”

Recent Action: As advocated by ICBA, the FDIC recently approved a new statement of policy on bank mergers that for the first time explicitly states that additional scrutiny may be needed for deals involving tax-exempt credit unions.

ICBA Outreach: ICBA recently called on the National Credit Union Administration to curb the abuse of its subordinated debt rule, released polling showing U.S. adults increasingly support equal consumer protections for credit union customers, and lauded the FDIC’s ICBA-advocated inclusion of credit unions in its merger guidance.

Media Groundswell: Media outlets are increasingly taking notice of ICBA’s calls for credit union policy reforms following strategic and targeted ICBA outreach efforts to reporters, with recent Bloomberg, CNBC, and Axios coverage raising questions about 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.