Wisconsin Task Force makes recommendations

Northwestern Financial Review, Mar 1, 2001 by Bengtson, Tom

The Wisconsin Department of Financial Institution's Task Force on Financial Competitiveness released its final report last month after a series of meetings that brought together bankers, consumer groups, regulators, educators and many others. The report makes recommendations for improving financial literacy, enhancing the availability of financial services, promoting business development, and reforming the state's financial regulations. The task force anticipates it recommendations will "enhance Wisconsin's financial and economic environment by the year 2005."

Without specifying a funding mechanism, the task force calls for improved financial literacy among children and adults. It also recommends the state adopt new e-signature laws, define predatory lending, and regulate advertising for credit cards. In addition, it recommends a new administrative review body be established which would weigh the interests of business groups with those of consumers when new regulations are proposed.

The task force was made up of representatives from several organizations, including the Wisconsin Bankers Association and the Community Bankers of Wisconsin. Other organizations representing mortgage bankers, credit unions, insurance agents, securities professionals, consumer credit counselors, and a variety of government entities participated in the effort, which began last May. Several meetings were conducted, including three public listening sessions in Eau Claire, Appleton and Milwaukee/ Madison.

The task force also recommends a variety of steps to make banking services more accessible, such as creating incentives for banks to serve some neighborhoods, and making computers accessible to people who traditionally avoid banks. It suggests churches, libraries and community organizations could be utilized in this effort.

The task force also recommends the state legislature pass the universal banking bill that has been introduced the last two sessions. "This legislation includes necessary parity powers for state depository institutions to maintain their competitiveness with federally chartered counterparts," the report states.

In what would be a major shift in regulatory approach, the task force calls for functional regulation of financial services companies. The task force argues this would help create a more competitive financial services marketplace.

By Tom Bengtson