A Federal Preemption Parity Framework For State Banks

In a multistate financial services marketplace, national banks and federal thrifts do business under a federal law framework that largely preempts state law and permits them to operate on a uniform basis wherever they choose to do business. Recognizing that this federal preemption can put state-chartered banks at a competitive disadvantage and thus undermine the dual banking system, Congress has enacted a number of statutes that provide parity for state banks with national banks:

• In 1980, Congress gave state banks the same ability as national banks to extend credit interstate under --"export"-- their home state usury rules.