The Office of the Comptroller of the Currency should reject a recent request to rescind certain regulations that articulate core national bank preemption standards, which would undermine the strength of the nation’s dual banking system, the American Bankers Association said today in a letter to the agency.
Earlier this month, the Conference of State Bank Supervisors called on the OCC to rescind certain National Bank Act preemption regulations, saying that allowing state regulators and bank legislatures to overrule national bank policy standards would advance President Trump’s anti-regulatory agenda. ABA said such assertions “appear to rest on misinterpretations of legislative history, regulatory text and case law and overlook the importance and structure of our nation’s dual banking system.”
“As Congress, the U.S. Supreme Court, OCC and every administration since President Lincoln has recognized, a strong dual banking system is essential to our nation’s economy,” ABA said.
ABA noted that the dual banking system gives banks the flexibility to determine which system works best for them. A national system provides national banks with the regulatory clarity and operational efficiencies necessary to operate in multiple states. At the same time, pursuing a state charter best serves banks seeking to serve well-defined markets or populations, and those who are just more comfortable working with their state regulators.
“Robust competition among national and state-chartered banks continually spurs innovation, ensuring consumers and businesses across the country and economic spectrum have meaningful access to a wide range of high-quality financial products and services,” ABA said.
Editor’s note: This story has been updated to correct the name of the Conference of State Bank Supervisors.
