ICBA commends Iowa rejection of credit union-bank deal

Mar 05, 2020

ICBA commended the Iowa Division of Banking for denying the sale of a tax-paying community bank to a tax-exempt credit union. Like a recent decision by the Colorado State Banking Board, the Iowa regulator said the transaction would violate state law requiring that banks be sold to other banks.

ICBA in January commended the Colorado decision and called on other state agencies to examine their laws on credit union purchases of state-chartered bank assets. Through its Credit Union Task Force and "Wake Up" campaign, ICBA has raised the profile of this disturbing trend, which has led to increased pressure from policymakers.