Defending credit unions’ mission amid relentless, hypocritical banker attacks

A RealClearPolicy op-ed pushes back against recent banker attacks, addressing misinformation head-on and setting the record straight about credit unions’ work to fulfill their mission as not-for-profit financial cooperatives while banks continuously abandon communities.

When it comes to banks selling to credit unions, America’s Credit Unions President/CEO Jim Nussle highlights how Small Business Administration (SBA) data clearly shows credit unions nearly double SBA loan activity within two years of the bank sale. This expansion of service and small business lending comes even as the Independent Community Bankers of America (ICBA) “fails to acknowledge that banks have spent years lobbying against credit union efforts to expand the arbitrary limits on member business lending” in its latest attack.

“They oppose every bill that would give credit unions more flexibility to serve small businesses, including those owned by veterans. Then, when credit unions are legally restricted from commercial lending – banks cry foul,” added Nussle.

At a recent Senate hearing, the American Bankers Association’s (ABA) witness made harmful statements about credit unions’ tax status. The op-ed instead points to the $37 billion in annual benefits credit unions deliver to all consumers through better rates, lower fees, and financial education.

“Bankers falsely claim that credit unions misuse their tax status by serving more people, or that they don’t do enough to serve the communities they’re in,” wrote Nussle. “How can both be true? Credit unions meet their mission as not-for-profit financial cooperatives by fighting for opportunities to provide safe, affordable services to people who need them most.”

He points to the stricter limits credit unions face in comparison to banks, yet how they continue to serve underserved communities and provide innovative solutions to members’ financial challenges. “Consumers are evolving. Our financial marketplace is evolving. But banks want to keep credit unions boxed into a model that is nearly 100 years old. Credit unions deserve the opportunity and flexibility to evolve to meet their members’ needs,” wrote Nussle.

The op-ed urges policymakers to support regulatory relief and reaffirm the tax exemption, stressing that “credit unions aren’t the problem—they’re part of the solution.”

“We’re not afraid of the data. We’re not afraid of the debate,” said Nussle. “But we are tired of being blamed for outcomes shaped by policies we’ve long fought to change.”