CUNA President/CEO Jim Nussle and NAFCU President/CEO Dan Berger set the record straight on the credit union difference in response to another attack from bankers questioning the credit union industry’s tax exemption and motives.
“Credit unions do not misuse their tax-exempt status,” the two wrote. “In fact, the numbers show it is one of the best public policy investments the government can make. Credit union members saw more than $14 billion in economic benefits alone in 2022, and non-members received billions more in benefits due to credit unions’ presence in the marketplace.
“This frivolous tactic by banks is an attempt to stifle competition, and it ignores the fact that a significant number of banks are Subchapter S corporations that do not pay corporate income taxes.”
Berger and Nussle also explain the trend of credit union-bank mergers – “data shows that credit unions are better for communities” – and the benefits of Navy Federal Credit Union’s new contract with the Department of Defense.
The two leaders also defended the NCUA as the credit union industry’s primary regulator to ensure safety and soundness, while being supportive of a regulatory environment that encourages growth and innovation.
“Credit unions deserve the same ability as banks to evolve with technology and consumer trends. Calling for hearings and government-funded studies of credit unions is just another attempt to knee-cap credit unions. And waste taxpayer dollars,” Berger and Nussle said.
NAFCU and CUNA will continue to highlight credit unions’ commitment to serving their 138 million members and communities, and protect the industry from false attacks.