ICBA supports amendment governing merger of credit unions into banks

ICBA said it supports proposed changes to the rules governing the merger of insured credit unions into banks.

Details: In a letter to the National Credit Union Administration, ICBA said the proposed changes represent an incremental and much-needed deregulatory first step that reduces unnecessary procedural burdens.

Background: The proposed rule would:

• Eliminate several prescriptive disclosure, formatting, notice, and voting-process requirements that were adopted in 2010 to disincentivize credit union mergers into banks.

• Remove requirements such as newspaper notices, detailed formatting rules for member disclosures, and certain reporting requirements describing how merger partners were selected.

• Eliminate nonbinding NCUA voting guidelines.

ICBA View: ICBA urged the NCUA to finalize the rule as proposed without weakening member protections or introducing new barriers.