Michigan recently became the ninth state to sign the 2015 Nationwide Cooperative Agreement for the Supervision of State-Chartered Credit Unions (the “Agreement”). The Agreement, developed by Michigan, Idaho, Ohio, Indiana, Kentucky, Oregon, Washington, West Virginia and Wisconsin, in conjunction with the National Association of State Credit Union Supervisors, is intended to facilitate the ability of credit unions to operate across state lines. According to Michigan’s Department of Insurance and Financial Services (“DIFS”), several additional states are considering joining the Agreement.
The DIFS identified the goals of the Agreement, which are 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 citizens of the respective states; and
- ensure that continued discussions occur with the associated regulatory agencies, the credit union industry, and other interested parties to promote consistent and equitable treatment for state-chartered credit unions, so they may effectively compete.