PRESS RELEASE
August 15, 2006
NASHVILLE, TN — Gavin Gee, director of the Idaho Department of Finance, presented on behalf of NASCUS at the National Conference of State Legislatures (NCSL) Financial Services Committee meeting on August 15 in support of maintaining the Committee’s long-standing policy on the credit union dual chartering system.
NCSL asked NASCUS to present before the Financial Services Committee on issues related to state regulatory oversight of credit unions. The Committee’s policies are up for renewal every three years.
NASCUS is the only organization dedicated exclusively to the preservation of dual chartering. NASCUS is active with NCSL to promote states’ rights in financial services regulation.
In his presentation for NASCUS, Gee emphasized the value of the state credit union charter in the nation’s financial system and the healthy regulatory competition dual chartering creates for regulators, the industry and consumers. Gee also explained the unique nature of the state credit union system and its contribution to a state’s economy and consumers.
“State lawmakers and regulators should work cooperatively to enhance all state financial institution charters to strengthen the state system, promote competition and economic development in their states,” said Gee to the Committee. “When state laws, rules or policies disadvantage the state charter, there is a risk that those institutions will change to a federal charter, only feeding the trend towards federalization of financial services regulation.”
Gee also informed the Committee of current challenges facing the state credit union system including state budget limitations, industry consolidation and regulatory burden. He encouraged the Committee to renew the dual chartering policy, as each state needs the support of its state legislatures to protect the viability of the state credit union charter. “The financial services industry in every state is far too important to turn over to the exclusive jurisdiction of the federal government,” said Gee.
The Committee voted to renew the dual chartering policy. A final decision on the policy is on the consent calendar for consideration during NCSL’s Annual Meeting on August 17. Lee Williams, president and CEO of Central Star CU in Wichita, Kansas also presented at the meeting on behalf of the Credit Union National Association.
Information
Contact:
Kate Hartig, Director of Communications,
(703) 528-0669 or kate@nascus.org
The
NASCUS mission is to enhance state credit union
supervision and advocate a safe and sound state
credit union system. Founded in 1965, NASCUS
represents all 48 state and territorial credit
union supervisors. NASCUS is advised by the NASCUS Credit Union
Advisory Council, which is made up of nearly
500 of the nation's more than 3,400 state-chartered
credit unions.
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