On April 24, Danielle Arlowe, Senior Vice President of the American Financial Services Association (AFSA), testified before a Rhode Island committee. The hearing focused on opposition to House Bill 6055, which proposes opting out of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA). This act allows 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. The association noted that such proposals conflict with DIDMCA’s original goal of providing parity between state-chartered and national banks.
"AFSA raised concerns over DIDMCA state opt-outs posing a significant threat to the business models of several of our members," said Arlowe. She added that these proposals "conflict with DIDMCA’s initial intentions, which were to place state-chartered banks on equal footing with national banks."
The AFSA's membership includes individuals who own and manage their own state-chartered, federally insured banks. Although some members use the bank partnership model, they represent a minority within the organization.
Further details about this and other State Government Affairs advocacy efforts are available in the direct advocacy section on AFSA’s website.