Excerpts from CUNA 2005 Briefing Paper

October 2005

Although the bank lobby claims credit unions are "growing beyond their means" and should therefore pay taxes, the credit union share of total assets has remained virtually unchanged. From 1992 to 2004, credit unions' market share has maintained a constant 6% of total assets. The annual growth of credit unions pales in comparison to that of banks, which in 2004 alone, grew by $812 billion - more than 1.2 times the total assets of credit unions!

Additionally, banks enjoy several other advantages over credit unions, including unfettered access to capital markets, lower capital requirements, no membership restrictions, wide authority to make business loans; and, about 2,200 banks have benefited from expanded Subchapter S treatment and no longer pay taxes at the corporate level.

Credit unions remain the most highly regulated and restricted of all insured financial institutions, particularly after the passage of CUMAA, which imposed new, severe restrictions on credit unions in several areas.

 

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