WASHINGTON–The rivalry between credit unions and banks was given feature treatment in the Wall Street Journal.
The impetus for the Journal story was NCUA’s proposal for expanded field of membership rules, which the agency’s board may take up later this year.
“For many credit unions, the new regulation will determine whether they can continue to grow without bumping up against regulatory restrictions,” the Journal story stated. “Meanwhile, many bankers view stopping that growth as key to preserving their market share, which they see threatened not only by not-for-profit credit unions but also by upstart online lenders such as LendingClub Corp.”
The story went on to report that the “ banking industry has condemned the NCUA’s proposal, saying it risks blurring the lines between credit unions and community banks.”
Camden Fine, president of the Independent Community Bankers of America, was quoted as citing the “unequal playing field” enjoyed by CUs due to tax exemption.
“Basically, the NCUA is saying all air-breathing mammals can be members of credit unions,” Fine told the Journal.
The story can be found here.