BOSTON—Massachusetts bankers on Monday released a report questioning the performance of credit unions, including the growth of federally chartered institutions that are exempt from Community Investment Act requirements concerning service to low and moderate income individuals.
The study, produced for the Massachusetts Bankers Association by PolEcon Research, termed CUs’ low-income designation as "a significant loophole that could become a greater risk if these institutions are allowed to expand exponentially with no limits on commercial lending or membership," the Worcester Business Journal reported.
The study also alleged that credit unions do not have to document service to low and moderate income individuals to qualify for federal and state corporate income tax exemptions, the news outlet reported.
The study arrives as state lawmakers are facing a deadline to make decisions on bills of interest to banks and credit unions.