Mutual institutions were established and are maintained for the benefit of their communities, depositors, and borrowers. They are well-run financial institutions that provide local service and investment to improve the quality of life in their local communities. ICBA strives to meet the needs of its mutual institution members and will support the choice of mutual ownership before all regulatory and legislative bodies.
Charter Choice. ICBA opposes any legislative or regulatory action to pressure mutual institutions to convert to stock form or to eliminate the option of mutuality and supports the right of mutual institutions to refuse funds offered for deposit by persons outside their communities.
New Capital Option. ICBA also supports the authorization of mutual banks to issue Mutual Capital Certificates (MCCs) that would qualify as Tier 1 common equity capital. MCCs would provide a new capital option that would help preserve the viability of mutual banks and allow them to continue to serve their communities.
Future of Mutuality. ICBA believes regulatory agencies should recognize the benefits of growing mutual banks and should provide resources to aid in their formation, particularly in areas that are underserved. The creation of mutual banks in low-income and underserved communities can be an effective way to bring banking services to areas of the country that do not currently have adequate banking services.
Prudential bank and credit union regulators should develop a path for credit unions to convert to mutual banks in a straightforward manner that allows for institutions to change charters without intimidation.
First Vice President, Accounting and Capital Policy