NCUA’s FOM rule ‘obliterates’ congressional limits: bankers
“Because of their tax-advantaged status, credit unions are able to offer financial products in direct competition with banks at a substantially lower cost.”
The NCUA’s amended Field of Membership rule “obliterates” the limitations that Congress placed on credit unions, state banking and community banking trade groups said, in a brief filed in a federal appeals court Friday.
“The Final Rule is simply further effort by NCUA to expand the competitive advantages of Community Credit Unions,” the Independent Community Bankers of America, 50 state banking associations and 25 community banking groups, said in the brief.
The American Bankers Association filed suit against the NCUA, charging that the agency’s Field of Membership rule effectively removes all limits on credit unions. That gives credit unions an unfair competitive advantage over banks, since credit unions are text exempt financial institutions, the associations contend, in their brief that attempts to bolster ABA’s case.
In addition, the credit unions are not required to comply with the Community Reinvestment Act, as banks are required to do, they said.
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