ARLINGTON, Va. — NASCUS and the Conference of State Bank Supervisors are both applauding the credit union related-provision added to the Regulatory Relief Act of 2006 that allows for full voting rights to the chairman of the State Liaison Committee of the Federal Financial Institutions Examination Council.
"There are so few credit union-related provisions in the Reg Relief bill. It's important that this is one of them," said NASCUS President/CEO Mary Martha Fortney.
With NASCUS and CSBS made up of many of the same regulatory members–many state regulators are responsible for the regulation of their state-chartered credit unions and state banks–Fortney said the addition of the provision "is something the two groups have been working on for some time. It's important that we now have a vote on matters that come before the Federal Financial Institutions Examination Council."
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The person on the State Liaison Committee who will have that vote is Chairman Steven Antonakes, commissioner, Massachusetts Department of Banking.
CSBS President/CEO Neil Milner said the provision "will help preserve the nation's dual banking system and keep community banks, the vast majority of which are state-chartered, viable so they can continue to fuel economic development at the local level."
The State Liaison Committee of the FFIEC includes three members who are appointed for two-year terms by the respective group they represent including NASCUS, the American Council of State Savings Supervisors, and the Conference of State Bank Supervisors.
Two additional members of the committee are elected for two-year terms by the FFIEC.
NASCUS' representative on the committee is Jerrie Lattimore, administrator, North Carolina Credit Union Division. The other four representatives include: Chairman Antonakes; Mick Thompson, commissioner, Oklahoma Department of Banking; John Allison, commissioner, Mississippi Department of Banking & Consumer Finance; and Jonathan Smith, review examiner, Delaware State Banking Department.
CSBS represents state chartered banks, which account for 70% of the banks nationwide. NASCUS and state chartered credit unions represent nearly half of the credit unions in the U.S.
"So it's important for the state regulatory system to not have to step aside when members of the FFIEC are voting on important matters," said Fortney, adding that, "It's important that Congress recognizes the importance of state regulators' vote on the FFIEC."
Fortney cited the Bank Secrecy Act, the anti-money laundering manual and Internet authentication guidance as examples of federally-issued guidance that also affects the state regulatory system, making it important that "state regulators are active in the process."
"We look forward to substantive policy discussion and the new role of the State Liaison Committee," said Fortney. –[email protected]
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