The record-extending 22nd credit union acquisition of a community bank in 2024 demands a response from policymakers, ICBA said following the announcement of the latest deal.
ICBA Response: In a post on LinkedIn, ICBA President and CEO Rebeca Romero Rainey said that when a credit union takes over a community bank, the tax revenues that would have gone to support local communities disappear.
Statement: “It’s time for policymakers to consider whether the current tax and regulatory framework for credit unions is still warranted in today's marketplace,” Romero Rainey said.
Growing Attention: The problem of credit union acquisitions and regulatory inequity received increased attention throughout 2024, including by:
The FDIC, which approved a statement of policy on bank mergers that explicitly states that additional scrutiny may be needed for deals involving credit unions.
Federal Reserve Governor Michelle Bowman, who said regulatory disparities between community banks and credit unions distort competition.
The Consumer Financial Protection Bureau, which penalized VyStar Credit Union for harming consumers through its botched rollout of an online banking system.
Consumers, 61% of whom in a recent ICBA poll conducted by Morning Consult poll said Congress should investigate whether credit unions should be able to acquire banks.
Media such as Bloomberg, CNBC, Axios, and CNN, which have covered the acquisition trend and credit union practices.