COLUMBUS—Continuing
a focus on jobs and the economy, the Ohio House of Representatives
today passed House Bill 322, which would bolster Ohio’s banking industry
and ensure that Ohio chartered banks are able to fairly compete with
other banks from out-of-state.
House
Bill 322 strives to avoid a loss of employers and jobs as a result of
disadvantages in Ohio law by creating a “bank parity” statute in Ohio.
This proposal would help to bridge the regulatory gap between Ohio’s
homegrown banks and Ohio branches of out-of-state banks, allowing Ohio’s
banks to adjust their rates to compete with the rates authorized by
other banks.
“This
legislation will help to build Ohio’s economy and create jobs by
supporting local businesses,” said Speaker of the Ohio House William G.
Batchelder (R-Medina). “At a time when many other states allow the
market to control interest rates, Ohio is one step closer to being
better able to attract, create and retain jobs within the banking
industry.”
Under
current law, Ohio is unable to limit interest rates that out-of-state
credit card providers charge Ohio consumers. Proponent testimony during
Financial Institutions, Housing and Urban Development Committee
indicated that Ohio’s current “rate cap” has contributed to some of
Ohio’s banks’ decisions to move credit card operations to other states,
which have cost the state vital jobs and revenue.
According
to House Bill 322, Ohio-based banks will be permitted to issue credit
cards at interest rates that are allowed in other states.
House Bill 322 passed with bipartisan support and now awaits Governor Kasich’s signature.
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