AFSA Testified on DIDMCA Opt-Out
On March 13, AFSA’s Senior Vice President, Danielle Arlowe, testified before the District of Columbia’s committee in opposition to DC B25-0609.
Why it matters: This bill would opt-out the state from the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA). DIDMCA introduced parity for state banks, stipulating that state-chartered banks with federal insurance are also authorized to export interest rates.
What we’re saying: In the testimony, AFSA raised concerns over DIDMCA state opt-outs posing as a significant threat to the business models of several of our members. The bill goes against DIDMCA’s initial intention, which is to place state-chartered banks on an equal playing field with national banks.
Go deeper: While AFSA does have members who use the bank partnership model, the larger portion of our membership consists of entities that own and oversee their own state-chartered, federally insured banks, making those using the partnership model a minority within our organization.
This testimony, along with SGA’s other advocacy, can be found on the direct advocacy section of AFSA’s website.
March 15th, 2024 by gmcgurn@afsamail.org
