The Independent Community Bankers of America announced Monday that a petition opposing credit union attempts to raise the member business lending cap has garnered more than 13,000 signatures from community bankers, bank employees and customers nationwide.
“ICBA and more than 13,000 constituents vigorously oppose legislation to expand the commercial lending powers of tax-exempt credit unions,” said Camden Fine, ICBA president/CEO. “Expanding the business-lending authority for taxpayer-subsidized credit unions – at the expense of taxpayers – would widen budget deficits at the federal, state and local levels.”
S. 2231 and its companion bill in the House, H.R. 1418, would raise the current credit union member business lending cap from 12.25% to 27.5% of assets. Senate Majority Leader Harry Reid (D-Nev.) said in March that the bill would see a vote on the Senate floor, but that vote has not yet materialized.
The banker lobby group claims credit unions have a generous tax subsidy and lighter regulations because they were established to serve people of modest means. Serving people of modest means is is why Congress placed a cap on credit union business-lending authority, the trade said.
If credit unions are to be allowed to expand into commercial lending, they should be taxed and required to comply with the Communities Reinvestment Act, ICBA said in a release.
The petition is posted online at www.stoptheCUgrab.org.