Connecticut House Bill HB06454

Connecticut 2021 Regular Session

• Introduced: 2/11/21
• Refer: 2/11/21
• Report Pass: 3/17/21
• Refer: 3/26/21
• Report Pass: 4/1/21

Caption

An Act Concerning Notice By Connecticut Banks Of The Closure Of Certain Branch Or Limited Branch Locations.

Impact

The bill aims to enhance consumer protection by ensuring that residents, particularly those in low to moderate-income areas, receive adequate notice and an opportunity to voice concerns before a bank branch closure. This is particularly important as the availability of banking services in these communities may be adversely affected by closures, potentially leading to decreased access to essential financial services.

Summary

House Bill 06454 addresses the required notice procedures for Connecticut banks when closing branch or limited branch locations. It mandates that a bank intending to close such a branch must inform the Connecticut Banking Commissioner and the chief elected official of the relevant municipality at least ninety days prior to the closure. The notice must include the reasons for the closure, supporting statistical information, and plans for the property after the closure. Additionally, banks are required to communicate with their customers through postings at the branch and via regular account statements during a specified period.

Sentiment

The sentiment surrounding HB06454 has generally been supportive, with legislators emphasizing the importance of transparency and community engagement in banking operations. However, some concerns were raised about the feasibility for smaller banks to comply with extensive notice requirements, indicating a slight contention around the balance between consumer protection and operational efficiency for financial institutions.

Contention

Notable points of contention include the implications of the notice requirement for banks operating in economically challenged areas, where community impact is more pronounced. While proponents argue that the bill protects consumers, critics express concerns that extended notice requirements could hinder banks' responsiveness to changing market conditions. The bill thus brings forth a dialogue on the tension between regulatory requirements and the operational flexibility of banks.