Outdated Regulations

Modern credit unions have outgrown their preferential tax and regulatory treatment. Instead, they are focused on prioritizing affluent markets and commercial lending over their original mission of providing consumer-focused financial services to people of modest means. As these supposed nonprofits leverage their tax status to purchase banks and other credit unions, more than 400 credit unions now boast more than $1 billion in assets.

Expert Views

Jelena McWilliams, FDIC

“With respect to the credit unions and community banks, Congress set up credit unions in a certain way. They are not subject to taxation, and they also don’t have CRA requirements…. I’m getting to that the playing field may not be exactly leveled.”

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Karen Shaw Petrou, Federal Financial Analytics, Inc.

“Credit-union regulation is often premised on profit maximization, not mission compliance....”

— Federal Financial Analytics, Inc, 2019

Rob Taylor, Idaho State University Credit Union

“I have colleagues from other small credit unions who share my frustrations. The problem with our movement is most of us have been indoctrinated to believe our common enemy are bankers when in fact the real threat to our future lies within our own industry. If taxation is in our future, then let it be with the large bank-like credit unions, so the entire movement doesn’t suffer from the actions of a few.”

Outdated Regulations

Expert Views

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