Credit unions insist they are different than banks, and they are: they are less regulated. They hide behind the veil of their proud history as financial service providers to at-risk communities, and avoid rigorous regulatory oversight. Inadequate reporting standards have shielded the credit union industry from scrutiny.
Federal Reserve Governor Michelle Bowman called on federal policymakers to analyze the impact of credit unions and non-bank lenders in local markets before approving bank combinations, during the Conference of State Bank Supervisors’ Community Bank Research Conference on September 28.
Ultra-large GreenState Credit Union – based in Iowa with nearly $11 billion in assets – has scrapped its plan to buy Omaha-based Premier Bank.
PenFed has wasted no time in aggressive use of this prized open charter — a giant loophole hiding in plain sight —and has eclipsed the credit union industry’s overall growth rate in the first half of 2022 by a whopping seven percent. We’re here to ask – why haven’t policymakers taken action to crack down on this brazen misuse of credit union advantages?
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