Aug. 20, 2015
CONTACT: Patrick Keefe, NASCUS Communications/703-528-5974, email@example.com
ILLINOIS SIGNS INTERSTATE BRANCHING AGREEMENTS WITH 16 OTHER STATES
Growth of states covered in cooperative arrangements strengthens state CU system
ARLINGTON, Va -- Interstate branching for Illinois state credit unions has become more accessible with the signing by the state of cooperative agreements with 16 other states, as announced Tuesday by Illinois Department of Finance and Professional Regulation Secretary Bryan Schneider.
The cooperative agreements are the first for the state. The two covenants -- The 2015 Nationwide Cooperative Agreement for the Supervision of State Chartered Credit Unions and the Southeastern Regional Cooperative Interstate Agreements – include the states of (for the first agreement) Idaho, Indiana, Kentucky, Michigan, Ohio, Oregon, Washington, West Virginia, Wisconsin and (for the second agreement) Alabama, Florida, Georgia, Mississippi, Missouri, North Carolina and Tennessee.
The 2015 nationwide agreement was developed by nine states in conjunction with the National Association of State Credit Union Supervisors (NASCUS).
“The growth of the coverage of both of these agreements is critical to the future of the state credit union system,” said NASCUS President and CEO Lucy Ito. “By signing on to this agreement, Illinois is participating in the strength and growth of the state credit union system, as well as promoting interstate commerce and cooperation on a reciprocal basis among the participating states.
The intent of the 2015 covenant is to establish guidelines for state credit union supervisors to examine and supervise the interstate operations of multi-state, state-chartered credit unions. The guidelines are designed to assist state supervisors in their efforts to promote increased coordination, cooperation, and communication in the regulation of multi-state credit unions, while maintaining competitive, responsive, and safe and sound credit union operations for the citizens of their respective states.
The goals of the 2015 agreement are to promote fair and equitable commerce among state-chartered credit unions based upon reciprocity, subject to appropriate safety and soundness provisions, in order to best serve the citizens of the respective states; and to ensure that continued discussions occur with the associated regulatory agencies, the credit union industry, and other interested parties to promote consistent and equitable treatment for state-chartered credit unions, so they may effectively compete.
In practice, the agreements ease the procedural impediments for credit unions and demonstrate that this is a viable choice for them to extend their operations as state-chartered financial institutions, consistent with their strategic plans, should they choose to do so.
“My thanks also to Secretary Schneider for signing the agreements,” Ito said, “as well as to the supervisors in the other states for their vision in creating and supporting these cooperative efforts.”
Patrick Keefe, Director of Communications, firstname.lastname@example.org or (703) 528-5974