Washington, D.C. (March 4, 2020) — Independent Community Bankers of America® (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on the Iowa Division of Banking decision to block a credit union acquisition of a community bank.
"ICBA and the nation's community banks commend the Iowa Division of Banking for blocking the purchase of a tax-paying community bank by a tax-exempt credit union. Like a Colorado State Banking Board decision earlier this year, the Iowa state superintendent of banking found that the transaction would have violated state statutes requiring that banks be sold to other banks.
"Following these landmark decisions, ICBA continues calling on other state agencies to examine their banking statutes to determine whether allowing state credit unions to buy the assets of state-chartered banks is legal and in the best interest of taxpayers. The surge in credit union acquisitions of community banks worsens banking industry consolidation, reduces tax revenues for local communities, and furthers the credit union industry's unbridled encroachment into full-service banking.
"ICBA will continue to raise concerns with the disturbing trend of larger credit unions increasing their taxpayer-subsidized footprint by buying up smaller, tax-paying community banks. Through the ICBA Credit Union Task Force and our 'Wake Up' campaign, ICBA is encouraging federal and state policymakers to re-examine the credit union industry’s tax and regulatory subsidies and to open their eyes to these financial firms' risky practices and irresponsibly lax oversight."
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. With more than 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ nearly 750,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, nearly $4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.
# # #