ICBA: Expand on credit union acquisition proposal

Jan 24, 2020

A separate National Credit Union Administration proposed rule would provide more transparency and disclosures when credit unions acquire bank assets, though ICBA encouraged the agency to expand on the proposal.

With ICBA raising the profile of credit union-community bank acquisitions through its “Wake Up” campaign and Credit Union Task Force, the NCUA plan would formalize processes for considering these applications that were previously employed on a case-by-case basis. It includes provisions on regulator approval, assuming deposits, and federal share insurance.

In a news release, ICBA called on the NCUA and other policymakers to expand on the rule to address the growing trend of large credit unions using their taxpayer-funded subsidies to acquire smaller, tax-paying community banks.