The U.S. Capitol building stands in Washington, D.C., U.S. Photographer: Zach Gibson/Bloomberg
The nation's community bankers on Monday renewed their call for Congress to re-examine the credit union tax exemption in an effort to "promote a level playing field" for financial institutions.
The Independent Community Bankers of America released its "Community Focus 2020" legislative agenda on Monday and singled out credit unions and the NCUA for criticism, much like other banking trade groups have.
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"Today's credit unions are leveraging their tax subsidy for rapid growth, purchasing multi-million-dollar stadium naming rights, flaunting their nearly unlimited fields of membership, and expanding their activities well beyond their original mission," the bankers association said.
And when it comes to the NCUA, the bankers contend that the agency consistently pushes the envelope and acts as a cheerleader for the industry.
"ICBA continues to oppose attempts by the NCUA to flout statutory limits and liberalize restrictions on fields of membership, member business lending, and issuing supplemental capital," the group said.
The bankers contend that credit unions have become "virtually indistinguishable" from banks.
But having finished a comprehensive tax overhaul effort during the last Congress, the House and Senate may be unwilling to open the tax code for major changes. On the other hand, Congress may make so-called technical corrections legislation making small changes to the bill that was enacted.
In that case, bankers could attempt to convince lawmakers to add credit union provisions to that bill.
The ICBA also said that Congress should subject credit unions to the Community Reinvestment Act, require greater disclosure of credit union compensation and ensure that it is not difficult from a regulatory standpoint for a bank to acquire a credit union than for a credit union to acquire a bank.
Ironically, on most other legislative and regulatory issues, the ICBA's agenda mirrors many of the priorities set by CUNA and NAFCU
For instance, the ICBA called on lawmakers to guarantee that merchants be required to follow the same data security standards that financial institutions must follow and to create a safe harbor to allow financial institutions to serve marijuana-related businesses.
Credit union trade groups have made similar requests of lawmakers.
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