Connecticut Senate Bill SB00399

Connecticut 2014 Regular Session

• Introduced: 3/5/14
• Refer: 3/5/14

Caption

An Act Concerning Bankers' Banks.

Impact

If enacted, this legislation would significantly modernize how bankers' banks operate under Connecticut law. It would enable them to compete more effectively by permitting a broader range of clients, thereby potentially leading to increased financial services innovation in the state. This bill aligns with contemporary banking practices where collaboration among different types of financial institutions is commonplace, and it aims to position Connecticut's banking system more robustly in the face of regional competition.

Summary

SB00399, titled 'An Act Concerning Bankers' Banks,' proposes amendments related to the regulatory framework governing bankers' banks in Connecticut. The bill is designed to expand the client base that bankers' banks can serve, specifically allowing them to provide services that benefit not only traditional banks but also out-of-state and credit union entities. This expansion is intended to enhance competition among financial entities within the state and streamline services that would increase operational efficiency for these institutions.

Contention

Notable points of contention surrounding SB00399 involve concerns about the potential risks of loosening regulations that guard against conflicts of interest and consumer protection within banking operations. Some legislators advocate for maintaining strict regulations, fearing that expanded powers could lead to predatory practices or squeeze out smaller banks and credit unions unable to compete with larger entities under the new framework. Discussions may revolve around whether these changes might undermine consumer confidence in certain banking practices and the overall financial stability of the sector.