AFSA opposes Oregon's proposed opt-out from federal banking act

On January 28, Elora Rayhan from the American Financial Services Association's (AFSA) State Government Affairs team testified at an Oregon committee hearing. The testimony was in opposition to Oregon House Bill 2561, which proposes that the state opt-out of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA).

The DIDMCA introduced parity for state banks by allowing state-chartered banks with federal insurance to export interest rates. AFSA expressed concerns that opting out of DIDMCA could threaten the business models of several members. According to AFSA, "The bill goes against DIDMCA’s initial intentions, which is to place state-chartered banks on an equal playing field with national banks."

AFSA highlighted that while some members use the bank partnership model, most members own and oversee their own state-chartered federally insured banks. Those using the partnership model are a minority within the organization.

This testimony and other advocacy efforts by AFSA's State Government Affairs can be found on the direct advocacy section of AFSA’s website.