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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.
March 02, 2021
Credit unions were created and granted a substantial tax exemption to serve “people of modest means” by providing credit for “provident purposes.” However, fewer than 20 percent of credit unions are physically located in an economically distressed area and only 27 percent are in low- and moderate-income (LMI) areas.
In recent years, there has been a spike in credit unions abusing their tax-exempt status to acquire taxpaying community banks, removing a trusted, local lender from the community, and limiting consumer choice in the financial services marketplace.
While these acquisitions were uncommon just a few years ago, there were 13 deals in 2018, surging to 21 in 2019. Due to the pandemic, transactions slowed to 9 in 2020 but could increase dramatically in 2021 and beyond.
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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.
