Regulatory uncertainty and banking industry advocacy likely led to a slowdown in credit union acquisitions of banks so far in 2025, the industry news publication American Banker reported today.
American Banker noted there were a record number of 22 proposed credit union acquisitions of banks last year, up from the previous high of 16 in 2022. So far only one bank-credit union merger has been announced in 2025. One reason is that as more deals were announced, opposition grew and policymakers took interest, American Bankers Association Chair John Asbury told the publication. He said that when nonprofit credit unions buy banks, they remove taxpaying businesses from local markets.
“I think there’s a fleecing of taxpayers,” Asbury said.
There also are policy and regulatory hurdles, American Banker reported. Most bank-credit union deals last year are still waiting for approval. The FDIC last year approved a policy statement on bank mergers that included a provision calling for additional scrutiny of credit unions. (The FDIC board this week proposed rescinding the statement.) Also, congressional Republicans have floated a proposal to require credit unions to pay federal income tax, although no formal policy has been put forward.
