The Independent Community Bankers of America (ICBA) has raised concerns over the increasing number of acquisitions of tax-paying community banks by tax-exempt credit unions. This year marks a record with 18 such acquisitions, according to ICBA President and CEO Rebeca Romero Rainey.

Rainey stated, "With the fifth acquisition this year of a tax-paying community bank by a tax-exempt credit union in Washington State, it should come as no surprise that policymakers and the American public are increasingly scrutinizing the shocking record amount of these deals and the role of antiquated credit union policies."

The Federal Deposit Insurance Corporation (FDIC) recently approved a new policy statement on bank mergers. For the first time, it suggests additional scrutiny for transactions involving tax-exempt credit unions, aligning with ICBA's advocacy efforts. According to polling conducted by Morning Consult for ICBA, 61% of U.S. adults believe Congress should investigate whether credit unions should acquire banks due to their tax and regulatory exemptions.

Rainey highlighted media attention from Bloomberg, CNBC, Axios, and CNN on this issue and called for legislative action. "It is past time for policymakers to do something about this increasingly concerning trend," she said. ICBA urges Congress to hold hearings and consider an 'exit fee' on such acquisitions to recapture lost tax revenue.

She also referenced historical precedents where Congress revoked similar tax exemptions in 1951 for institutions operating like commercial banks. Rainey argued that with community banks playing a crucial role as small-business and agricultural lenders, Congress should reassess current policies regarding credit unions.

The ICBA aims to support community banks through advocacy, education, and innovation. These banks play a vital role in local economies by providing relationship-based financial services that promote job creation and economic growth.