Bankers report focuses on 'unrestricted' credit union growth
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The Massachusetts Bankers Association commissioned a study on credit unions.
Feeding their turf battle, 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, also describes a "low-income" designation claimed more commonly by credit unions 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," according to association president and CEO Daniel Forte.
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 study arrives as state lawmakers are facing a deadline to make decisions on bills of interest to banks and credit unions.
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