Nussle: Banks selling to credit unions is worthwhile collaboration

Community financial institutions working together for the benefit of the people they serve – including bank sales to credit unions –  is something Congress should encourage, America’s Credit Unions President/CEO Jim Nussle wrote in an American Banker op-ed this week. Nussle said community banks often sell to credit unions to ensure a healthy financial institution will continue to serve its community.

“When banks realize they are unable to continue their operations, a credit union is often a natural partner to consider. Instead of leaving consumers high and dry because they can’t turn a profit, banks often make the decision to sell to a credit union to ensure a healthy financial institution remains in the community,” Nussle wrote.

He added that 80% of these sales are a bank selling to a low-income designated credit union, and a  St. Louis Federal Reserve report found 50% of community bank sellers cited the credit union focus on the community.

America’s Credit Unions’ research shows that in the last decade the approximately 404,000 new credit union members who chose to join following a bank sale have realized more than $41 billion in benefits since becoming members.

 

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