In spite of the common opposition by community banks and credit unions when it comes to federal control of interchange and other consumer related issues, credit unions still manage to make the issues priority list of the nation's bankers. Last week the Independent Community Bankers Association (ICBA) announced its top legislative and regulatory priorities for the coming year. In position #12 is opposing the expansion of credit union powers, particularly raising the cap on "member business lending," and urging Congress to end credit unions' unfair and unjustified tax exemption.
Although down the priority list considerably from a few years ago, when it was #1, the ICBA claims that credit union exemption from federal taxation is no longer justified in today's economic climate. It feels the exemption is a long-overlooked and unwarranted federal tax subsidy. They also encourage Congress to subject credit unions to Community Reinvestment Act requirements, and encourages credit unions seeking bank-like powers to convert to a bank or thrift charter.
Other higher ranked ICBA priorities include opposing the Durbin interchange provisions, ensuring the new Consumer Financial Protection Bureau protects consumers without damage to banks, and supporting housing finance reform that doesn't disrupt the economy . . . among other issues.
See the full ICBA priorities list here.
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