A recent article asks: If a credit union can look like a bank, compete like a bank, grow like a bank, and buy a bank, at what point should it be treated like a bank?
Taxing Details: In the Crescent-News article, Community Bankers of Ohio President and CEO Aza Bittinger Jr. points out that Ohio banks pay a tax to the state government that credit unions don’t pay. When a credit union acquires a community bank, he notes, the tax burden that had been shouldered by the bank simply shifts over to other taxpayers.
ICBA View: In a recent American Banker op-ed, ICBA President and CEO Rebeca Romero Rainey said that while credit unions have evolved to increasingly act like banks, the structural differences nevertheless are too great to ignore. “If credit unions are to be called ‘banks,’” she said, “they should meet the same tax and regulatory standards that banks do.”
Recent Advocacy: Following the latest acquisition of a tax-paying community bank by a multi-billion-dollar tax-exempt credit union, ICBA this week called for policymakers to end the federal tax exemption for credit unions with $1 billion or more in assets.
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.
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.