COLUMBUS, Ohio (12/7/11)--The Ohio Credit Union League is calling for more options, including the use of credit unions, in legislation to expand depository authority for Ohio banks, approved by the state's Senate Financial Institutions Committee. The legislation awaits action on the Ohio Senate floor.
Banks and thrifts would be able to expand use of the Certificate Deposit Account Registry Service to place additional funds from public entities by participating in a short-term, Federal Deposit Insurance Corp.-insured sweep product, said the league (eLumination Newsletter Nov. 30).
Under the program, banks can fully insure large-dollar, short-term deposits and eliminate the need to collateralize uninsured amounts. Proponents say it creates a "win-win-win" for local governments, taxpayers and depositors, the Ohio league said.
In testimony before the committee, John Kozlowski, league general counsel, urged wider options for local governments, schools and political divisions. The bill should be part of a collection that uses other financial institutions, such as credit unions, to provide expanded choice for public entities, and small-business owners, Kozlowski said.
"Unfortunately, those that want to provide additional choice and resources in this bill, oppose other legislation that would also benefit local governments and small businesses," he added. "By giving our local officials and small businesses the best tools available, we can truly make this a 'win-win-win-win' for everyone."