In a recent BankThink
In fact, funneling profits back to members is exactly what credit unions were formed to do in the first place and that is why credit unions have the tax exemption.
Congress gave credit unions an exemption in 1934 based on their cooperative structure and mission to provide people with access to credit for provident purposes such as borrowing to buy a car, a home or to help finance a small business. The goal was to have credit unions compete with the banks to ensure that consumers have access to affordable financial services.
One reason bankers oppose the tax exemption for not-for-profit credit unions may be that they are aware of the foothold that credit unions have established among consumers. Earlier this summer, credit unions reached a
Just this week, the
Perhaps Mr. Keating always comes back to his talking points on taxes because it is easier to criticize credit unions than admit to losing ground to them. The data shows consumers are increasingly turning to credit unions for financial services. Bankers try to change the subject to taxing credit unions, but maybe it is consumers who are really changing the subject with their feet, by walking into credit unions.
Bill Hampel is interim president and chief executive of the Credit Union National Association.