December 23, 2019

Berger discredits criticisms of bank-driven CU mergers in new op-ed

In a new Credit Union Times op-ed, NAFCU President and CEO Dan Berger discussed how credit union-bank mergers benefit local communities. dan

"If a credit union chooses to ink a deal with a selling bank, it would be for good reason: the merger would benefit its members and local community," wrote Berger. The op-ed comes as some policymakers have expressed interest in learning more about the issue.

Berger's argument is also supported by the St. Louis Fed, which has stated these deals have the "potential to be a win for all the stakeholders involved," and NCUA Chairman Rodney Hood, who noted in congressional testimony that without a deal communities may be left without a financial institution altogether. 

While bankers continue to take issue with bank driven merger activity, Berger called on readers to take note of the real reason for banker hostility: "their desire to increase their own profits by working to undercut a competing, yet separate industry."

To read the entire op-ed in Credit Union Times, click here.