Connecticut 2018 Regular Session

Connecticut Senate Bill SB00393

Introduced

3/1/18

Refer

3/1/18

Caption

An Act Expanding The Investment Authority Of Connecticut Credit Unions.

Impact

If enacted, SB00393 will have a significant impact on the investment practices of Connecticut credit unions. Current limitations on investments will be lifted, enabling these institutions to diversify their portfolios more extensively. By permitting investments in things like debt mutual funds and repurchase agreements, the bill provides credit unions the tools to potentially yield higher returns on their assets, thereby enhancing overall financial health. This is particularly pertinent as credit unions seek to navigate a changing economic environment characterized by evolving member needs and financial challenges.

Summary

SB00393 aims to expand the investment authority of Connecticut credit unions by amending the existing statutes related to permitted investments. The bill proposes to allow credit unions greater flexibility in managing their funds not allocated to loans, broadening the range of permissible financial instruments, including various types of securities, mutual funds, and real estate investments. The overarching goal is to enhance the operational capabilities of credit unions, allowing them to better serve their members in a competitive financial landscape.

Contention

Despite its advantages, there may be potential points of contention surrounding SB00393. Some critics could argue that expanding investment powers might expose credit unions to greater financial risks, especially if investments in more volatile securities are permitted. Concerns may also arise regarding the regulatory oversight capabilities of the state in ensuring that credit unions engage in prudent investment practices. Therefore, while the bill aims to strengthen credit unions' financial positions, it ushers in discussions about balancing enhanced operational freedom with adequate risk management and regulatory compliance.

Companion Bills

No companion bills found.

Previously Filed As

CT HB05142

An Act Concerning Consumer Credit, Certain Bank Real Estate Improvements, The Connecticut Uniform Securities Act, Shared Appreciation Agreements, Innovation Banks, The Community Bank And Community Credit Union Program And Technical Revisions To The Banking Statutes.

CT SB00501

An Act Concerning Motor Vehicle Assessments For Property Taxation, Innovation Banks, The Interest On Certain Tax Underpayments, The Assessment On Insurers, School Building Projects, The South Central Connecticut Regional Water Authority Charter And Certain State Historic Preservation Officer Procedures.