Passed by the DC Council and signed by Mayor Muriel Bowser earlier this year, the Credit Union Act of 2019 is now officially law. Pending promulgation of regulations, the Act will grant credit unions based in the District of Columbia the option of applying for a charter from the DC Department of Insurance, Securities and Banking (DISB). The MD|DC Credit Union has been strongly advocating for the legislation and will continue to work with the DC Council and DISB as the Act moves toward implementation.
“This is a win for credit unions giving them an additional option to consider when determining how best to serve their members," said MD|DC Credit Union Association President/CEO John Bratsakis. "The Act provides credit unions headquartered in DC with more flexibility when it comes to examinations, field of membership, loans and low-income designations. It gives credit unions another arrow in their quiver to deploy. We will continue to work with DISB and the DC Council during the rulemaking process to ensure that regulations serve in the best interest of credit union members.”
The Credit Union Act of 2019 authorizes DISB to charter, supervise, regulate, examine and exercise other powers related to the operation of credit unions in the District. Since 1964, all DC credit unions have been federally chartered under the Federal Credit Union Act by the National Credit Union Association (NCUA).
The MD|DC Credit Union Association has been working on bringing a DC charter back since 2001, with increased advocacy over the past several years. Most recently DISB, in partnership with the Association, hosted a roundtable in January giving the department and DC credit unions the opportunity for an open dialogue.
The MD|DC Credit Union Association has prepared a chart comparing the provisions of the Federal Credit Union Act with the DC Credit Union Act which can be viewed here.
John Bratsakis