State CU and Bank Regulators Endorse Delay In Interchange Rule

Citing concerns about safety and soundness and the well being of smaller financial institutions, trade groups representing state credit union and bank regulators are urging lawmakers to delay the Federal Reserve’s debit interchange rule.

 “Congress’ inclusion of the smaller issuer exemption recognized a need to protect smaller institutions from potential economic impact. However, we are concerned that regulations promulgated and taking effect within the law’s timelines would have unintended negative consequences and would not be able to protect those institutions in the manner that Congress intended,’’ NASCUS President/CEO Mary Martha Fortney and Conference of State Bank Supervisors President/CEO Neil Milner wrote to the leaders of Senate and House committees that deal with banking issues.