New 'Plain Vanilla' Charter Being Sought

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"Plain vanilla" operations aren't just limited to credit unions. Bankers in this state are seeking to create a community bank charter for banks here in order to help them compete against larger, mega-banks and CUs, the Bankers Association of Texas says.

The American Banker, an affiliate of The Credit Union Journal, said the charter would be for banks that offer core services only, and which aren't in ancillary services such as insurance. The bankers also want the new charter to exempt initial profits from income taxes up to a certain cap, and to streamline aspects of CRA for banks operating under the proposed community charter. The asset size of such "small banks" was not disclosed, but in testimony before Congress, the Bankers Association of Texas chairman, J. Pat Hickman, said banks of $1 billion or less in assets are losing share.

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