The resurgence of tax-exempt credit union acquisitions of community banks during the first part of 2022 is posing new threats to underserved communities, ICBA Chairman Brad Bolton writes in a new op-ed on LinkedIn.
Consumer Impact: While some in the credit union industry appear to be taking great pride in growth subsidized by taxpayers, these acquisitions harm consumers, exceed the limits established by Congress to justify their tax exemption, and demand congressional action, Bolton writes.
Call to Action: “With credit unions now using this tax exemption to make inflated purchase offers well above acquired banks’ book values, taxpayers should know more about how credit unions are using their subsidy,” writes the president and CEO of Community Spirit Bank in Red Bay, Ala. “It’s time for Congress to respond.”
ICBA Campaign: Meanwhile, ICBA is running a digital campaign featuring a recently released ICBA video urging Americans to advocate congressional hearings on how credit unions are taxed and regulated.
Grassroots: Community bankers can continue urging Congress to hold hearings on the credit union tax exemption using a customizable message to lawmakers on ICBA’s Wake Up page and its Wake Up Messaging Playbook.