Sept. 8, 2016
TEXAS SIGNS INTERSTATE BRANCHING AGREEMENTS WITH 17 OTHER STATES
Growth of states covered in cooperative arrangements strengthens state CU system
ARLINGTON, Va -- Interstate branching for Texas state credit unions has become more accessible with the signing by the state of cooperative agreements with 17 other states, as announced this week by Harold E. Feeney, commissioner of the Texas Credit Union Department.
The two cooperative agreements that Texas has signed on to are: the 2015 Nationwide Cooperative Agreement for the Supervision of State Chartered Credit Unions (which includes the states of Idaho, Illinois, Indiana, Kentucky, Michigan, Ohio, Oregon, Washington, West Virginia and Wisconsin) and; the Southeastern Regional Cooperative Interstate Agreements (which include Alabama, Florida, Georgia, Mississippi, Missouri, North Carolina and Tennessee; Illinois is also included in the agreement).
Both agreements were developed by the engaged states with the National Association of State Credit Union Supervisors (NASCUS).
“By entering into this agreement, Texas 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, as well as fostering parity with the federal credit union charter for Texas state-chartered credit unions,” said Lucy Ito, NASCUS president and CEO.
The intent of the 2015 compact 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 goal of the 2009 Southeastern cooperative agreement is 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 consumers” of the respective states that enter into the agreement.
NASCUS’ Ito said that, 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.”
Ito extended thanks to Texas Commissioner Feeney for signing the agreements and to the supervisors in the other states for “their vision in creating and supporting these cooperative efforts.”
Patrick Keefe, Vice President, Communications, firstname.lastname@example.org or (703) 528-5974