ICBA has long warned about the dangers of tax-exempt credit unions acquiring tax-paying community banks. Now, a new ICBA data analysis details how these acquisitions are harming local communities while community banks outperform credit unions in high-poverty areas.
As detailed in my new blog post out this morning, small-business and mortgage lending data show that community banks are outperforming credit unions in the lower-income communities that credit unions receive a federal tax exemption to serve. As a result, credit unions’ taxpayer-subsidized acquisitions pose a significant threat to these communities.
ICBA will be sharing this information with urgency as we continue pressing lawmakers to address the credit union tax exemption. And with community bankers serving as our industry’s best advocates, make the most of these new data points when discussing credit union issues with policymakers, customers, and the news media.
Together, we can build on the momentum we’ve generated with our ongoing advocacy and media efforts to achieve meaningful change to federal credit union policy.
