WASHINGTON–America’s Credit Unions has issued a statement in response to a report in The Banker that it said “mischaracterizes the purpose and impact of credit union growth,” and which ignores the “clear and measurable benefits delivered to millions of Americans.”
The Banker is published by Financial Times Group.
Under the headline, “US credit unions accused of abandoning mission with ‘Wall Street-style’ behaviour,” the article states, “As credit unions continue to scale by aggressively acquiring community banks, industry experts are questioning whether their size is becoming an enforcement gap and raising concerns that they are failing to uphold their mandate to serve people with limited financial resources.”
It cites both Michael Emancipator, regulatory counsel for the Independent Community Bankers of America, and Aaron Klein, a senior fellow in economic studies at the Brookings Institution who has been a critic of the credit union tax exemption, as its primary sources.
Bank Acquisitions Cited
The article points to credit union acquisitions of banks, naming rights deals, and more as reasons the tax exemption deserves scrutiny.
In its response America’s Credit Unions said “credit unions remain true to their mission: democratically governed, not-for-profit financial cooperatives that return earnings to members through better rates, lower fees, and community investment. Structure and service – not size – defines credit unions.”
The trade group further said that expansion — whether through mergers, acquisitions, or new branches — is “driven by member benefit, not institutional self-interest. When community banks close or sell, credit unions often step in to preserve local access, keep staff in place, and offer products without punitive fees or shareholder pressure.”
Fact Sheet Issued
America’s Credit Unions issued a fact sheet in which it stated:
- Over half of the members in the nation’s largest credit unions are military families
- Community bank earnings in 2024 were 70% higher than those of large credit unions
- Since 2012, large credit unions have added nearly 500 net branches while banks have closed approximately 20,000
- Only 10% of credit unions have over $1 billion in assets — yet they operate more than half of the 900 credit union branches in areas that would otherwise be banking deserts.
‘Full of Misinformation’
Calling The Banker article “full of misinformation and false banker claims,” it stated the Credit Union Membership Access Act is not a “loophole,” as the article suggested, but an act of Congress “specifically designed to expand access to affordable, cooperative financial services.”
‘Ignoring Closures’
“Attacking credit unions for expanding access while ignoring the wave of bank branch closures across America is deeply inconsistent,” America’s Credit Unions President and CEO Jim Nussle in a statement. “Our growth is member-driven, mission-focused, and essential to ensuring communities — from rural towns to military bases — have the financial services they need.”
