Having been dealt a setback in federal court, the Independent Community Bankers of America is vowing to "level the tax and regulatory playing fields" between banks and credit unions "through all appropriate avenues."
ICBA President Camden Fine said late Tuesday that the association is still evaluating a T decision by Judge James C. Cacheris of the Eastern District of Virginia to dismiss the ICBA's challenge to the NCUA's new Member Business Lending rules.
Cacheris said the ICBA suit had no substantive merit and also dismissed the case on procedural grounds. The association had argued that the rules loosened member business lending too much and gave credit unions an unfair advantage over banks since they are tax exempt.
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Fine said that the association is "deeply disappointed" with the decision.
"If the decision stands, tax-exempt credit unions will be permitted to exceed Congressional limitations on commercial lending activity under relaxed regulatory oversight, thereby posing a tangible threat to community banks, consumers and the financial system at large," Fine said.
He continued, "Regardless of today's decision, ICBA will continue to pursue efforts to level the tax and regulatory playing fields between community banks and credit unions through all appropriate avenues."
Congress is expected to consider comprehensive tax reform during the 115th Congress and credit union leaders are already gearing up for a fight with banks over the credit union tax exemption.
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