ICBA and state banking associations filed a friend-of-the-court brief asking the U.S. Supreme Court to review a U.S Court of Appeals decision largely upholding National Credit Union Administration field-of-membership regulations.
The brief argues that the court's August 2019 ruling in the ICBA-supported case afforded too much deference to the NCUA under the "Chevron doctrine," which grants considerable rulemaking discretion to regulatory agencies.
The brief specifically challenges the leeway granted the NCUA with respect to its definitions of “rural district” and “well defined local community.” It also argues that the NCUA's field-of-membership rules are anti-competitive and have an adverse impact on the banking industry.
The NCUA last fall issued a proposed rule to amend its field-of-membership regulations in the wake of the court ruling. While the court largely upheld the NCUA's previous rule, it also found that a provision of the rule could have a discriminatory impact on lower-income and minority residents. The court permitted the NCUA to issue the new proposal to address the court’s concerns.
ICBA offers a summary of the NCUA proposed rule on its "Wake Up" resource center.