Community bankers have for years warned of the expansion of credit union powers, but Navy Federal Credit Union’s new “Community Bank” brand indicates credit unions recognize they’ve gone too far, ICBA President and CEO Rebeca Romero Rainey wrote in a recent LinkedIn post.
‘Community Bank’ Program: The $165 billion-asset institution is calling its new program to serve overseas military installations "Community Bank, Operated by Navy Federal Credit Union." In her LinkedIn post, Romero Rainey said Navy Federal appears to be trying to mask that it is a global financial institution that does not pay taxes or meet the same level of regulatory standards as real community banks.
More on Credit Unions: Following a recent series of credit union acquisitions of community banks, ICBA:
Launched new targeted ads and a website making clear to consumers that “Something’s Wrong” with credit union policy.
Conducted an ad campaign directing congressional offices to questions they should ask credit union executives in Washington for advocacy meetings.
Renewed its call for Congress to act on credit union bank acquisitions.
Grassroots Resources: Community bankers can use ICBA’s Be Heard grassroots action center to call on their members of Congress to hold a hearing on the NCUA’s lax oversight. Additional resources—including state fact sheets, a messaging playbook, and a customizable op-ed—are available on the ICBA website.