State Sen. Jason Barickman, R-Bloomington, passed legislation in the Senate to save costs by eliminating duplicative government bodies.
Senate Bill 748 eliminates the Board of Savings Banks and consolidates it with the State Banking Board by adding both an at-large member and an alternative member to the latter board.
The Board of Savings Banks oversees 26 banks, which largely have the same powers, regulations and examination policies and procedures as commercial banks, which are overseen by the State Banking Board, Barickman said in a press release.
There are 300 commercial banks. Both boards advise the state Division of Banking, often on the same issues.
“Any time we can eliminate unnecessary government bodies and their associated costs, that’s a win-win,” Barickman said in a press statement. “This is a case where we have similar bodies overseeing many of the same businesses, so it just makes sense to consolidate their work into one more focused board.”
By adding two members from the savings bank industry to the State Banking Board, one board will be able to serve the entire banking industry.
Barickman’s legislation also eliminates the Residential Mortgage Board, which has not met since 2012.
“Put simply, we can eliminate duplicative services and actually improve the missions of these boards with less cost,” Barickman said. “This is a good move for the banking industry and the taxpayers.”