The American Bankers Association (ABA) and America's Community Bankers (ACB), two banking industry trade groups that have competed aggressively for members, on Monday announced their plans to merge in the fourth quarter of this year.
{mosads}The new entity will be a behemoth among financial-services trade associations, boasting nearly $75 million in reserve funds and almost 250 years of combined operating experience. It will be called the American Bankers Association and headed by Ed Yingling, the ABA’s current president and chief executive. Diane Casey-Landry, ACB’s president and CEO, will become the executive vice president and chief operating officer.
“The new ABA will be a unified association that will achieve a broad consensus on industry issues and serve as the advocate for the banking industry,” ABA Chairman Earl McVicker said. “We will be politically stronger with broader grass roots representing a strong majority of all size banks and the vast majority of the industry — commercial banks, thrifts and mutual savings institutions.”
ACB Chairman Mark E. Macomber said the merger was a logical step, as the two groups have been converging on a number of policy issues. “As the ACB and ABA have become philosophically aligned on many issues, and with the successful mergers of a number of state organizations, it simply makes sense for two great organizations with extensive histories, engaged members and experienced staff to become one great organization — the unquestioned premier banking association in our great industry.”
The merger could threaten the balance of power in the ongoing battle between banks and credit unions. Dan Mica, the president and chief executive of the Credit Union National Association, congratulated the two trade groups but urged them to focus their combined resources on data security and other policy issues important to bank customers rather than attacking credit unions.
“I would hope that [the merger] is used to benefit consumers and good public policy and maybe minimize the need [for the banking trade groups] to outdo each other in beating up on credit unions,” Mica said, adding that the merger sets an example that the credit union trade associations could emulate.
Yingling said he expected that members will see a reduction in dues under the new structure.