ARLINGTON, Va.–Interstate branching for state-chartered credit unions in Texas has become more accessible following the signing by the state of cooperative agreements with 17 other states, according to Harold E. Feeney, commissioner of the Texas Credit Union Department.
The two cooperative agreements that Texas has signed on to are the 2015 Nationwide Cooperative Agreement for the Supervision of State Chartered Credit Unions (which includes Idaho, Illinois, Indiana, Kentucky, Michigan, Ohio, Oregon, Washington, West Virginia and Wisconsin), and the Southeastern Regional Cooperative Interstate Agreements, which include Alabama, Florida, Georgia, Mississippi, Missouri, North Carolina, Tennessee and Illinois.
Both agreements were developed by the engaged states with the National Association of State Credit Union Supervisors (NASCUS), the trade group reported.
“By entering into this agreement, Texas is participating in the strength and growth of the state credit union system, as well as promoting interstate commerce and cooperation on a reciprocal basis among the participating states, as well as fostering parity with the federal credit union charter for Texas state-chartered credit unions,” said Lucy Ito, NASCUS president and CEO.
The intent of the 2015 compact is to establish guidelines for state credit union supervisors to examine and supervise the interstate operations of multi-state, state-chartered credit unions. The guidelines are designed to assist state supervisors in their efforts to promote increased coordination, cooperation, and communication in the regulation of multi-state credit unions, while maintaining competitive, responsive, and safe and sound credit union operations for the citizens of their respective states.
NASCUS said the goal of the 2009 Southeastern cooperative agreement is to “promote fair and equitable commerce among state chartered credit unions based upon reciprocity, subject to appropriate safety and soundness provisions, in order to best serve the consumers” of the respective states that enter into the agreement.
NASCUS’ Ito said that, in practice, the agreements ease the procedural impediments for credit unions and demonstrate “that this is a viable choice for them to extend their operations as state-chartered financial institutions, consistent with their strategic plans, should they choose to do so.”