AFSA Opposes DIDMCA Opt-out
On January 28, Elora Rayhan from AFSA’s State Government Affairs team testified at an Oregon committee hearing in opposition to OR HB 2561. This bill would opt-out the state from the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA). DIDMCA introduced a parity for state banks, stipulating that state-chartered banks with federal insurance are also authorized to export interest rates. 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 intentions, which is to place state-chartered banks on an equal playing field with national banks.
While AFSA does have members who use the bank partnership model, the larger portion of our membership consists of individuals who 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.
January 30th, 2025
