01/23/2020 | Press release | Distributed by Public on 01/23/2020 17:07
Washington, D.C. (Jan. 23, 2020)-Independent Community Bankers of America® (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today's National Credit Union Administration board meeting.
'ICBA and the nation's community banks strongly oppose today's National Credit Union Administration proposed rule to allow the largest and most complex tax-exempt credit unions to issue subordinated debt as an alternative form of capital, and we urge the agency to withdraw its plan. This proposal is yet another example of the NCUA pushing the envelope and expanding credit union powers well beyond limits justifying the industry's tax exemption.
'The NCUA's proposal would undermine credit unions' mutual ownership structure, allow outside investors to exploit the credit union tax subsidy, and fuel runaway growth of an industry that has abandoned its founding mission to serve people of modest means. Today's plan would put the financial system and taxpayers at increased risk, just like a similar proposal introduced nearly three years ago that has languished amid strong opposition and the agency's ongoing legal challenges.
'ICBA meanwhile encourages the NCUA and other policymakers to expand on a separate proposal released today that would provide more transparency and disclosures when a credit union acquires bank assets. The growing trend of large credit unions using their taxpayer-funded subsidies to acquire smaller, tax-paying community banks worsens banking industry consolidation, reduces tax revenues for local communities, and furthers the credit union industry's encroachment into full-service banking.
'Through its 'Wake Up' campaign and Credit Union Task Force, ICBA will continue calling on policymakers and the public to open their eyes to the risky practices, costly tax subsidies, and irresponsibly lax oversight of the nation's credit unions.'
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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