The Point
Pinpoint Joins Coalition Urging FDIC to Finalize State Bank Parity Rule
Pinpoint joins the Southwest Public Policy Institute and 20+ free-market groups urging the FDIC to finalize its State Bank Parity rule before Illinois' interchange fee law takes effect.
Pinpoint Policy Institute joined the Southwest Public Policy Institute and more than 20 other free-market organizations in a letter urging the Federal Deposit Insurance Corporation to finalize its proposed State Bank Parity rule (RIN 3064-AG34).
The rule would apply a host state's laws to an out-of-state state bank's services only to the extent they apply to an out-of-state national bank, whether or not the state bank has a branch there. That is the parity Congress wrote into section 24(j) of the Federal Deposit Insurance Act.
The letter points to Illinois' Interchange Fee Prohibition Act as the cost of leaving the gap open. A federal court has barred Illinois from enforcing the law against national banks, but state banks serving Illinois customers from other states can't tell whether it reaches them. By the FDIC's own estimate, the rule would spare the 3,185 state banks the law may reach about $308 million in one-time system upgrades. The coalition asks the FDIC to finalize the rule before the Illinois law takes effect on July 1, 2027.
Read more here: Coalition Comments on State Bank Parity, RIN 3064-AG34
More from Pinpoint:
- Colorado Gets It Right on Interchange Fees
- The Market Speaks: Visa/Mastercard Settlement Shows Why Congress Should Sit Down on the CCCA
- The Federal Reserve's Debit Card Interchange Fee Proposal: Perfecting Failure
Download the original State Bank Parity coalition letter (PDF)