June 26, 2009
NASCUS Affirms Federal Regulatory Reform Position
ARLINGTON, Va. As Congress and the Administration address regulatory modernization, the NASCUS Board of Directors recently adopted seven principles reaffirming its position on regulatory reform.
Dual chartering is at the core of the NASCUS principles for regulatory reform. "Our principles reflect NASCUS' strong commitment to preserving dual chartering, which provides diversity, competition and innovation in the credit union regulatory structure," said NASCUS President and CEO Mary Martha Fortney. "NASCUS applauds the Obama Administration for recognizing the importance of dual chartering in its regulatory reform proposal, as well as a separate credit union regulator and the role of the states in consumer protection."
The NASCUS principles for federal regulatory reform are:
- Recognize and affirm the distinct roles of a state chartering authority and a share deposit insurer.
- Understand and affirm cooperation between the state and federal regulatory agencies and share deposit insurance systems.
- Recognize and affirm the distinctive authority of state and federal regulatory agencies, ensuring that state credit union regulators retain regulatory authority over state-chartered credit unions.
- Ensure that states have the authority to supervise state credit unions.
- Reaffirm state legislatures have the authority to enact consumer protection statutes and to promulgate and enforce state consumer protection regulations, without the threat of federal preemption.
- Recognize state authority to determine appropriate credit union powers, including share insurance alternatives.
- Support total capital reform for credit unions; allow credit unions to access supplemental capital.
The NASCUS principle statements for regulatory reform reflect our ongoing commitment to state regulatory authority, dual chartering and the ability of state legislatures to create laws to meet the particular needs of citizens of their states. The principle statements parallel the NASCUS mission to enhance state credit union supervision and advocate for a safe and sound credit union system.
As Congress debates regulatory reform, NASCUS will stress its principles for regulatory reform and will continue to testify, when appropriate, on the value of dual chartering and state authority in the U.S. financial services system.
Kate Hartig, VP, Public Relations and Legislative Affairs, (703) 528-0669 or email@example.com