Community Bankers List Curbing CU Powers as High Priority
Defeating the effort to raise the cap on member business loans and ending the tax exemption for credit unions are among the top priorities of the Independent Community Bankers of America this year.
The group will be “opposing expanded powers for credit unions, particularly the proposal to raise the cap on ‘member’ business loans,” according to a 12-point list of priorities that the group agreed to at its annual meeting, currently being held in San Diego. The section on credit unions is listed as the last of the group’s 12 priorities.
Credit unions are pushing legislation that would raise the cap on member business loans from 12.25% of assets to as much as 27.5% of assets. Sen. Mark Udall (D-Colo.) has introduced legislation that would allow that.
The ICBA also said it would work to persuade Congress to end credit unions’ “unfair and unjustified tax exemption.” The group says at the very least credit unions with assets of more than $1 billion should have to pay federal taxes. Several reports on deficit reduction have suggested ending the credit union tax exemption a way to generate more revenue.
The group also renewed its call for credit unions to be subject to the Community Reinvestment Act and said it “encourages credit unions seeking bank-like powers to convert to a bank or thrift charters.”
The group’s top priorities are opposing the Federal Reserve’s debit interchange proposal and ensuring that the Bureau of Consumer Financial Protection focuses on the true source of risk to consumers, the “shadow banking industry.”