Wake Up and Take Action

The Independent Community Bankers of America and the nation's community banks are calling on policymakers and the public to “Wake Up” to the risky practices, costly tax subsidies, and irresponsibly lax oversight of the nation’s credit unions.

Learn how the tax-exempt status of credit unions affects your state with our state-by-reports and gain key messaging guidance through the Wake Up Messaging Playbook.

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NCUA approves subordinated debt rule

Dec. 18, 2020

The National Credit Union Administration board approved an ICBA-opposed final rule that will allow the largest and most complex credit unions to issue subordinated debt to institutional investors.

Under the rule, the subordinated debt instruments count toward qualifying credit unions’ risk-based net-worth requirement. While low-income credit unions are already permitted to issue subordinated debt, the rule will add an additional 285 complex credit unions representing $730 billion in assets, ICBA said in its comment letter earlier this year.

In a news release, ICBA said the rule is another example of the NCUA expanding credit union powers well beyond limits justifying the industry’s tax exemption.

“The NCUA’s rule would undermine credit unions’ mutual ownership structure, allow outside investors to exploit the credit union tax subsidy, and fuel runaway growth of an industry that has abandoned its founding mission to serve people of modest means," ICBA President and CEO Rebeca Romero Rainey said.

ICBA continues raising awareness of credit union mission creep and the NCUA's overreach through its "Wake Up" campaign and Credit Union Task Force.

HOW CREDIT UNION'S TAX-EXEMPT STATUS AFFECTS YOUR STATE

These state-by-state reports show how credit unions have exceeded their original mandate and how that unchecked growth has negatively affected local communities across every state.

See the Report for All of the USA

Find your state

Charts

Credit unions in your state used their tax exemption to avoid paying

 

in federal income taxes.

House

In 2022, credit unions across your state held a grand total of

 

in tax-free assets.

People

In your state credit unions paid $0 in federal income tax. Meanwhile,

Nurses paid:

Cashiers paid:

Teachers paid:

Wake Up Messaging Playbook

Wake Up Messaging Playbook

Find out how community bankers can more effectively advocate for a level tax and regulatory playing field between tax-exempt credit unions and the community banking industry. Access your playbook today. You must be a member to access this content.

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