ICBA told the National Credit Union Administration that its proposal to allow credit unions to hold more nonmember shares is the latest example of the agency pushing the envelope to help the industry it regulates.
The NCUA plan would allow federal credit unions to receive public unit and nonmember shares up to 50 percent of their paid-in and unimpaired capital and surplus less any public unit and nonmember shares. Current rules limit nonmember shares to 20 percent of a credit union’s total shares or $3 million, whichever is greater.
In a comment letter, ICBA said the plan would allow credit unions to take even more deposits from outside their membership base, further circumventing field-of-membership rules. The NCUA should concentrate on improving the overall safety and soundness of the credit union industry, particularly following the New York taxi medallion scandal, ICBA said.
Community bankers can continue using ICBA’s Be Heard grassroots action center to urge Congress to investigate the trend of large credit unions buying up community banks. ICBA is also encouraging community bankers to send in examples of egregious credit union actions to firstname.lastname@example.org and to use ICBA’s customizable op-ed to raise awareness of the acquisition trend.