After the reported acquisition of a tax-paying Florida community bank by a multi-billion-dollar Michigan credit union, ICBA said these subsidized deals harm small businesses and reduce lending capacity in local communities.
Statement: In a national news release following the $8 billion-asset credit union’s fourth transaction in Florida since 2023, ICBA President and CEO Rebeca Romero Rainey said “it is past time for policymakers to address the credit union tax and regulatory exemptions that fuel these deals.”
Public Support: ICBA polling of U.S. adults consistently shows that Americans support reforming credit union policies. According to ICBA’s latest polling, 59% agree that credit unions should be required to follow stricter regulations to justify their tax exemption, agreeing by more than a 3-1 margin.
ICBA Advocacy: ICBA recently told the Treasury Department that federal credit unions should be required to file Form 990, the annual information return required of nearly all tax-exempt organizations. Last month, ICBA reiterated its call for Congress to end the federal tax exemption for credit unions over $1 billion in assets.
Resources for Community Bankers: ICBA’s The Illusionists campaign features a video, frequently asked questions, and additional information on how community banks outperform credit unions in meeting the needs of local communities and the policy disparities that demand reform.