Credit unions’ work serving those left behind by big banks is more important than ever, America’s Credit Unions wrote to a Senate Banking subcommittee Tuesday. The committee hearing today will examine the macroeconomic impacts of tax reform that will take place next year. America’s Credit Unions, Leagues, and credit unions are continually engaging policymakers on the value of the credit union difference.
“The tax-exempt status afforded to credit unions allowed them to serve areas and people that banks would not serve,” wrote America’s Credit Unions President/CEO Jim Nussle. “By every account, (the Federal Credit Union Act) has been an unparalleled success. Data shows the credit union tax status brings $35 billion in financial benefits to members and non-members. It is one of the best investments the U.S. government makes with an approximate 1,400% annual rate of return.”
Nussle also noted credit unions are:
- Not-for-profit financial cooperatives giving members an equal say over how their credit union is run;
- Committed to making financial services more affordable, rather than paying profits to investors;
- Focused on relationship banking and a high level of customer service;
- Well capitalized, with a much larger share of credit union deposits covered by federal deposit insurance than bank deposits;
- Led by diverse individuals, including more than half of credit union CEOs being women, and three times as many credit unions as banks categorized as minority depository institutions; and
- Accessible, continuing to reach new members and communities while banks have closed over 8,600 branches since 2020.
America’s Credit Unions sent a similar letter to the Senate Finance Committee last week for its hearing on tax avoidance. Credit unions were not mentioned in the hearing itself, only in a footnote of one witness’s written testimony.
Also, Nussle’s op-ed on the numerous consumer benefits of the credit union tax status was published Tuesday in Real Clear Markets.
