06/29/2020 | Press release | Distributed by Public on 06/29/2020 16:45
Washington, D.C. (June 29, 2020) - Independent Community Bankers of America® (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today's Supreme Court decision not to review the National Credit Union Administration's field-of-membership rules.
'Today's Supreme Court decision not to review a National Credit Union Administration rule that could have a discriminatory impact on urban communities is another reminder that Washington and Americans nationwide need to 'Wake Up' to the realities of tax-exempt credit unions.
'While the courts have granted considerable rulemaking discretion to the NCUA under the 'Chevron doctrine,' the agency's flawed plan would allow taxpayer-subsidized credit unions to include wealthy suburbs of metropolitan areas in their fields of membership while cutting out their urban cores. Meanwhile, it would drastically enlarge credit unions' geographic reach by defining entire states and major metro centers as rural districts.
'The NCUA has yet to address redlining concerns with its rule, which is just the latest example of the credit union industry's captive regulator bowing to the growth-obsessed financial firms it is charged with regulating at the expense of local communities.
'Through its 'Wake Up' campaign, ICBA will continue encouraging policymakers to open their eyes to the risky practices, costly tax subsidies, and irresponsibly lax oversight of tax-exempt credit unions and how far credit unions have strayed from the original purpose underlying their tax exemption.'
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. With more than 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ nearly 750,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, nearly $4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers' dreams in communities throughout America. For more information, visit ICBA's website at www.icba.org.
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