ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release March 28, 2003 #03-13
E-mail: [email protected]

ACB CRITICAL OF CREDIT UNION EXPANSION RULE

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Statement by Diane Casey Landry, president and CEO, America’s Community Bankers, on today’s NCUA decision to expand credit unions’ membership opportunities:

The National Credit Union Administration once again has overstepped its bounds. The expanded regulation issued today is contrary to the Federal Credit Union Act and the Credit Union Membership Access Act.

Allowing credit unions to expand with no regard to the common bond requirements of the laws encourages the continued unbridled growth of large, bank-like credit unions at the expense of small credit unions and tax-paying banks.

Times change and industries mature. More than 50 years ago, Congress declared that mutual savings banks were in active competition with commercial banks and revoked their tax-free treatment. Today, many credit unions are more like banks than mutuals were 50 years ago. If credit unions want to act like banks, they should be treated like banks and pay taxes and comply with the Community Reinvestment Act.

With federal and state governments experiencing budget shortfalls, why won’t the credit unions step up to the plate and pay their fair share? We would welcome them as full tax-paying members of the financial community.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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