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Capital, Regulations Stalling M&As

A lack of meaningful mergers and acquisitions in the credit union sector could have serious consequences, experts say.

By Tina Orem | Updated on September 18, 2015

A perfect storm of regulation and marketplace dynamics is preventing more meaningful credit union mergers from happening, leaving the industry – especially small credit unions – increasingly unable to compete, M&A and advisory experts warn.

Many credit unions know survival requires operational efficiency and that the way to maximize operational efficiency is to grow. There are typically two ways to do that: Grow organically by reinvesting cash flow or grow by merging with another institution. But only one of those methods is generally available to credit unions, and it may be stifling mergers and acquisitions – and by extension, viability – in the industry.

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Tina Orem

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