Congress cannot proclaim its support for community banks while allowing tax-subsidized credit unions to continue growing and competing against banks on a tilted playing field, Florida Bankers Association President and CEO Alex Sanchez wrote in a Fox Business op-ed.
“Congress cannot have it both ways, publicly proclaiming support for community banks while allowing corporate welfare for credit unions to continue,” he wrote. “Credit unions, awash in cash because of their tax-exempt status, are buying banks in cash deals. Since 2012, credit unions have purchased 29 banks.”
In Florida, Sanchez noted that since the beginning of 2018, credit unions have either bought or announced deals to buy seven banks, with four deals announced in 2019 alone.
Read the op-ed.
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The story as posted on Yahoo had a headline that implied credit unions were going to make extinct community banks. That is a laugh. Community banks will do that to themselves when the last one sells itself to a larger institution. Credit unions are the largest community FIs in Sacramento and San Diego because the community banks in those cities sold their institutions to the largest banks (or were taken over by the RTC). It was not because of credit unions.
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