WASHINGTON—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 ahead of its hearing this week to examine the macroeconomic impacts of tax reform that will take place next year.
“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
- Accessible, continuing to reach new members and communities while banks have closed over 8,600 branches since 2020