Tennessee enacts law barring credit union bank acquisitions

Tennessee Governor Bill Lee recently signed state legislation clarifying that the state’s banks may only be acquired by FDIC-insured institutions.

Tennessee Law: The Tennessee Bankers Association-advocated legislation came after an appellate court ruled earlier this year that the state’s banks may be acquired by credit unions. That ruling overturned a decision by the state’s banking commissioner that blocked a credit union acquisition of a bank, citing a state law restricting bank acquisitions by entities that are not bank holding companies. ICBA applauds TBA’s persistent advocacy efforts, which helped ensure this favorable outcome.

Related State Activity:

• A recent op-ed from Independent Community Bankers of Colorado Executive Director Michael Van Norstrand and Colorado Bankers Association President and CEO Jenifer Waller urged opposition to state legislation that would permit credit union acquisitions of the state’s banks.

• 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.

Recent Polling: Recent ICBA polling shows public support for reforming credit union policies, with 68% of adults saying credit union customers should have the same consumer protections that banks provide.

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 credit union policy. Additional resources on credit union policy are available on the ICBA website.