When you learn that a community bank is selling its assets to a credit union, it is often a win-win situation for the credit union, the community bank and the community involved.
“Bank owners have many reasons to sell to a credit union,” says Caroline Willard, President and CEO of the Cornerstone League. “Sometimes that includes a better cultural fit, a likelihood of employee retention and also the preservation of a community heritage. Credit unions often keep an institution in business and preserve it in the market. “
Credit unions too get benefits of these transactions, including expanding geographic footprint, product diversification and potential new members. There are also strategic advantages, such as economies of scale and the prevention of competition, says Willard.
In this episode of the CUNA News podcast, Willard dispels the myths and misconceptions about credit unions that bankers often mention. She also discusses the idea that banks sell their assets to credit unions, how often these purchases occur, and how credit unions benefit from them.
In this episode:
1h45: Myths and misperceptions
5:52: Banks sell their assets to credit unions
10:04 am: Purchases offer benefits
11:38 am: Prevent financial deserts
12h48: Other priorities lawmakers need to focus on