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Last update: 07/28/14

ICBA Policy Resolutions for 2014
Track I: Legislation and Regulation

MUTUAL AND SAVINGS INSTITUTIONS

Position

  • ICBA supports and defends the choice of mutual ownership before all regulatory and legislative bodies. Mutuality is a viable charter alternative that should be accorded parity in all respects with other charter forms.

  • All thrift institutions should be equally represented and accorded parity in all respects with other charter forms. Any proposed new laws or regulations should consider the impact on the mutual bank business model and its viability. A financial institution has the right to choose the type of charter under which it operates. No regulatory agency should obstruct the right of a financial institution, including a credit union, to convert to a mutual institution charter. ICBA also supports the right of a mutual or savings institution to assert a private right of action under the Savings and Loan Holding Company Act.

Background

Mutual institutions were established and are maintained for the benefit of their communities, depositors and borrowers. They are well-run financial institutions that provide local service and investment to improve the quality of life in their local communities. ICBA strives to meet the needs of its mutual institution members and will support and defend the choice of mutual ownership before all regulatory and legislative bodies. In its role as an advocate for community banks, ICBA promotes mutuality as a viable charter alternative that should be accorded parity in all respects with other charter forms. ICBA will represent mutual institutions before Congress and the regulatory agencies and urges the agencies to take into account the unique nature of the mutual charter.

Equitable Treatment and Parity for Mutuals. ICBA supports legislative or regulatory changes that will provide federal thrift institutions equitable treatment by considering the potential impact a new rule would have on the different business model of federal thrifts.

Charter Choice. ICBA opposes any legislative or regulatory action to pressure mutual institutions to convert to stock form or to eliminate the option of mutuality and supports the right of mutual institutions to refuse funds offered for deposit by persons outside their communities. Mutual institutions must have the ability to retain their mutual charters. A financial institution has the right to choose the type of charter under which it operates and ICBA opposes any attempt by any regulatory agency to obstruct the right of an institution, including a credit union to convert to a mutual institution. ICBA also supports the right of a mutual institution to defend itself from activist depositor groups and therefore supports a private right of action for mutual and savings institutions under the Savings and Loan Holding Company Act.

Staff Contact: Lilly Thomas

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