America’s Credit Unions swiftly debunked claims from a former credit union executive turned community banker in an op-ed published Wednesday by Chief Advocacy Officer Carrie Hunt in American Banker.
The author tried to paint the legacy of the credit unions industry’s support of Main Street businesses into something questionable all because of the tax status and messaging around credit unions buying banks.
“There isn’t a shred of evidence to back up the article’s claims that credit union business lending is somehow beyond their ability, other than claims from the very same bankers who aren’t stepping up to serve those businesses,” said Hunt.
In the rebuttal, Hunt points out that “credit unions collectively reflect a market share that is less than 5% of depository institution commercial loans — whereas banks control more than 95% of the market.”
In last year’s Conference of State Bank Supervisors Survey, results show that less than 5% of community banks were their main competitor for small business loans. Additionally, the Federal Reserve’s small business survey contributed insight into consumer satisfaction and points to credit unions providing a positive experience over a small bank or online lender.
“There’s a reason Congress hasn’t touched the credit union tax status for 90 years. That’s because it consistently benefits members and communities across the country. Credit unions are the best financial partner for small businesses – in good economic times and bad,” Hunt concluded.
