ABA Statement on Acting Comptroller Hsu’s Remarks on National Bank Preemption

“We are encouraged by today’s remarks from Acting Comptroller Hsu defending the principle of national bank preemption, which has been essential to the functioning of our banking system for more than 160 years. Our entire economy benefits from this system that provides efficiency and regulatory clarity for institutions operating across state lines while offering the flexibility they need to innovate and better serve their customers.

“We have been concerned by the increasing number of states adopting laws that challenge longstanding federal laws by attempting to give state regulators authority over the operations of national banks. States imposing their own rules on national banks, no matter how well-intentioned, creates a patchwork of differing regulatory requirements across the country and undermines the longstanding efficiencies and economic benefits derived from our dual banking system. History has demonstrated that consumers benefit when national banks compete under uniform and consistent rules overseen by the federal government, while states oversee those institutions that choose to operate under a state charter.

“Today’s comments from Acting Comptroller Hsu signal the federal government's commitment to defending the dual banking system, but those words must be followed by action if we want to prevent damage to our economy."

Additional Background:

On May 9, ABA joined all 52 state bankers associations in sending a letter to the OCC urging it to defend the principle of national bank preemption. Read the letter.