OLYMPIA, Wash. — CUNA, which does not typically weigh in on state regulatory matters, has written in support of considering the option of private primary deposit insurance in Washington State.
CUNA President/CEO Dan Mica noted that banker groups often write in opposition of changes in credit union authorities. "However, we are dismayed that some within the credit union system have failed to recognize what is really at stake in this rulemaking process–the viability of the dual chartering system and the ability of state regulators to affect independent, tailored decisions developed under a rigorous comment and review process," he wrote.
NAFCU recently wrote in opposition of permitting private primary deposit insurance as a threat to the dual chartering system.
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CUNA said opponents' arguments against private insurance "focus on speculative future risks" while ignoring state statutory restrictions, including requiring adequate reserves. "In view of the limitations in the state law, we question whether such open charges are really masking an underlying distrust of state regulation, further undermining the dual chartering system," Mica wrote.
He called the state's regulatory review process on the matter "robust and comprehensive" and even commended NCUA's approach in its comment letter of offering what they saw as improvements rather than simply opposing the option.
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