Community Bankers of Michigan: Apply CRA to state’s credit unions

The Community Bankers of Michigan called on state lawmakers to subject credit unions to sound regulations such as the Community Reinvestment Act.

Letter to the Editor: In a new letter to the editor of the Midland Daily News, CBM President and CEO James North wrote that community banks have been a lifeline to Michigan’s rural communities, but this support is at risk due to acquisitions by tax-exempt credit unions. “Unlike community banks, credit unions are not bound by CRA requirements, meaning they are not obliged to invest in Michigan communities, including low- and moderate- income neighborhoods,” North said.

ICBA View: ICBA supports applying Community Reinvestment Act requirements to credit unions comparable to and with the same asset-size distinctions as banks and thrifts. ICBA’s “Repair, Reform, and Thrive” plan and open letter to the 119th Congress urge lawmakers to address credit unions’ tax and regulatory advantages.