ICBA commended the Colorado State Banking Board for blocking the purchase of a tax-paying community bank by a tax-exempt credit union. In a nearly unanimous vote, the board found that the transaction would have violated Colorado statute requiring that banks be sold to other banks.
"Following this landmark decision, ICBA calls on other state agencies to examine their banking statutes to determine whether it is legal and in the best interest of their state to allow state credit unions to buy the assets of state-chartered banks," ICBA President and CEO Rebeca Romero Rainey said in a national news release.
Through its Credit Union Task Force and "Wake Up" campaign, ICBA has raised the profile of the disturbing trend of credit unions buying smaller community banks, which has led to increased pressure from Congress on this issue.
At a board meeting scheduled for this Thursday, the National Credit Union Administration will consider a proposal on credit union acquisitions that may provide more transparency and disclosures when a credit union acquires bank assets