The opinion expressed by the president and CEO of the American Bankers Association, in the June 23, 2014, edition of The Hill, is worthy of comment, despite it being a stretch to yet find another way for a trade association to criticize the efforts of a cooperative system that in the view of many Americans provides better financial services than the banks Mr. Keating represents.
For decades, many banks have considered credit unions to be a threat to their survival. Each year, these banks have urged Congress to place greater restrictions on credit unions to lessen the ability of credit unions to compete.
Iowa’s credit unions are in the midst of a growth spurt. And banks are crying foul.
Data provided by the Iowa Credit Union League shows that although the number of credit unions has dropped from 126 in 2012 to 113 this year, total assets and members have grown substantially.
Total assets grew 16 percent from $10.5 billion in the first quarter of 2012 to $12.2 billion in the first quarter of 2014 while membership grew 3.9 percent from 983,183 to 1,021,449 during that same time period.
There’s no denying that many of the nation’s banks are disappointing their customers, whether through high fees, poor lending availability, or bad service reputations. With more and more consumers choosing to put their money into financial cooperatives, it’s clear that the big banks are losing some ground. Here are the top five benefits of a community credit union for those dissatisfied with their current banking choices.
Thank you for beginning the process of comprehensive tax reform. We continue to analyze your recent discussion draft and its impact on the banking industry in greater detail. As the process unfolds in the coming months, we strongly urge you to use this opportunity to reexamine existing tax advantages that are outdated, no longer serve the public interest intended, and create competitive inequities between taxed and non-taxed firms.
Some banks are asking state legislators to pass resolutions calling on the U.S. Congress to eliminate the nonprofit status of credit unions, effectively imposing new taxes on the banks’ smallest of rivals. Said differently, “too big to fail” banks – those first to get in line for federal help and bailouts – are coming to a statehouse near you and pleading for government help to raise the cost of their ankle biter competitors.