BIRMINGHAM, Ala. — As large and seemingly healthy credit union mergers make headlines, regulatory guru Dennis Dollar said the industry shouldn't automatically mourn lost credit union charters.
"When we had 25,000 credit unions, we had about 30 million members and about 3% capital. Today, we've got 8,200 credit unions, but almost 90 million members and nearly 12% capital. So tell me, which is the stronger industry?" Dollar, of the consulting firm Dollar Associates, asked.
Dollar said he thinks it's stronger today, with fewer credit unions, but a greater percentage of well-capitalized institutions. The former NCUA chairman turned consultant said he's been involved in a few of the recent headliner mergers, and said from where he stands, there's more where that came from. Not "an avalanche", he said, but merger business is picking up.
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"You don't wait until someone is on their deathbed before giving them transfusions," Dollar said. "I guess we all regret when mergers take place unnecessarily, but I'm not sure two credit unions coming together, convinced economies of scale will serve members better, is unnecessary. They might consider it very much necessary."
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