DES MOINES, Iowa–The ongoing tensions between this state’s community banks and credit unions raised its head here when a legislative committee conducted a routine review of tax credits.
Iowa Public Radio reported that the Iowa Bankers Association used the review to raise the issue of an “unlevel playing field,” citing the case of investors who chartered a bank in Johnston, Iowa. Iowa Public Radio quoted the IBA’s Kevin VanderLee as saying that just six years after the bank was started State Employees Credit Union moved its headquarters to Johnston because it was “following the money.”
“Johnston is the highest wealth per capita community in the state of Iowa,” VanderLee told Iowa Public Radio. “All you have to do is follow the branches, where they are being opened, and it will give you a good sense of how competition is working in our state.”
Iowa Public Radio quoted the Iowa Credit Union League’s Justin Hupfer as responding, “That’s silly; credit unions are not chasing down money.”
Hupfer told IPR that credit unions serve low-to-middle class Iowans, not the wealthy, and that the CU tax structure enables credit unions to keep loan rates low, and to return profits to members.
Iowa Public Radio quoted House Ways and Means Committee Chair Tom Sands (R-Wapello) as saying its unlikely the state’s banks would get any legislation passed this year.