Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey released a statement regarding the acquisition of a tax-paying bank by a tax-exempt credit union. This marks the 20th such transaction this year, prompting increased scrutiny from policymakers and the public.

"This latest acquisition is yet another example of a tax-exempt credit union crossing state lines to acquire a tax-paying community bank—further expanding the federal tax exemption for more than $2 trillion in credit union assets and displacing trusted providers of credit in local communities," said Romero Rainey. She noted that with the record number of transactions, it's unsurprising that attention is being drawn to outdated credit union policies.

Romero Rainey highlighted recent regulatory developments, including the FDIC's new policy on bank mergers which suggests additional scrutiny for deals involving credit unions. Federal Reserve Governor Michelle Bowman has expressed concerns about regulatory disparities between community banks and credit unions affecting competition. Additionally, Consumer Financial Protection Bureau penalties against VyStar Credit Union have raised issues about the National Credit Union Administration’s oversight capabilities.

"With ICBA polling conducted by Morning Consult showing 61% of U.S. adults say Congress should investigate whether credit unions should be able to acquire banks, it’s time for policymakers to respond to this trend with a comprehensive federal solution," she stated. The ICBA is advocating for congressional hearings and considering an 'exit fee' on such acquisitions to recover lost tax revenue.

Romero Rainey pointed out media coverage from Bloomberg, CNBC, Axios, and CNN criticizing harmful practices by credit unions as evidence that Congress should reevaluate their tax exemptions. "In 1951, lawmakers found that these institutions operated much like commercial banks and should be taxed accordingly," she remarked.

The ICBA continues its mission to support community banks through advocacy, education, and innovation. Community banks play a vital role in supporting small businesses and agricultural sectors across the nation.

For further information about ICBA's initiatives and efforts, visit their website at icba.org.