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Press Release

November 29, 2017

Contact: Richard Loconte, 212-709-1691

DFS CONTINUES INNOVATIVE REGULATORY ACTIONS TO SUPPORT NEW YORK STATE-CHARTERED FINANCIAL INSTITUTIONS

DFS Order Allows Credit Unions to Retain Student Members After They Are No Longer Enrolled and Allows Faculty and Staff to Become Members, Providing Parity with Federal Credit Unions

Financial Services Superintendent Maria T. Vullo today announced that the Department of Financial Services (DFS) has issued an order pursuant to New York State Banking Law authorizing credit unions with student branches to retain student membership after students are no longer enrolled at the school in which a branch is located.  In addition, under the order announced today, DFS is permitting student branches to allow faculty and staff of the school where the branch is located to become members of the student branch of the credit union as well.  This new action is part of the Department’s continuing efforts to support New York State-chartered institutions, including credit unions, and ensure they are on equal footing with their federally-chartered counterparts.

“Student branches of credit unions provide important services and information such as financial literacy and personal financial management and training that benefit students well into their futures,” said Superintendent Vullo.  “By authorizing these branches to continue to serve members after they are no longer enrolled in school and to have faculty and staff as members, DFS is encouraging them to continue to have a positive impact on their members’ financial well-being.”

Today’s action is the latest of several measures DFS has undertaken over the past year to support New York State-chartered financial institutions.  These include enhancing access to financial services by low-income communities through guidance facilitating the designation of New York State-chartered credit unions as “low-income” credit unions and exempting state-chartered from the oath of office rule.  In addition, DFS authorized the expansion of the New York State-chartered banking system with the approval of three new banking development districts, in Oneida County and Brooklyn and the Bronx; six new bank branches, one new credit union branch and the recent conversion of a federally chartered bank to a New York State charter.

New York currently has a total of 139 state-chartered commercial banks, saving banks and bank holding companies; and 16 state-chartered credit unions.

A copy of the order can be found here.

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