NAIB Statement in Support of the American Lending Fairness Act
The National Association of Industrial Bankers strongly supports the American Lending Fairness Act of 2026, introduced by Senator Bernie Moreno (OH) and Representative Warren Davidson (OH), which restores clarity to the long-standing interstate banking rules under the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA).
“Senator Moreno deserves enormous credit for stepping up to ensure that consumers and small businesses continue to have access to affordable, regulated credit—no matter where they live,” said Frank Pignanelli, Executive Director of the National Association of Industrial Bankers. “The bill preserves the essential foundation of interstate banking and restores much-needed clarity and common sense. We simply can’t turn back the clock on a national credit market that has benefited consumers in every state.”
For more than four decades, DIDMCA has served as the legal foundation for interstate banking—allowing banks to serve customers across state lines under a single, uniform federal framework. It is the legal infrastructure that makes a national credit market possible. Recent efforts by some states to reinterpret DIDMCA’s opt-out provision to regulate loans made by out-of-state banks threaten to undermine that system, replacing uniform national rules with a confusing state-by-state patchwork that will raise costs, restrict credit, and harm consumers nationwide. Attempts to limit how credit is priced don’t lower costs; they will simply make it less available to consumers who need it most.
The American Lending Fairness Act of 2026 provides a straightforward and narrowly tailored fix. By clarifying that a state’s opt-out applies to loans made by banks it charters, the legislation reaffirms Congress’s original intent, protects the dual banking system, and ensures that state-chartered banks can continue to compete fairly with national banks—while preserving consumer protections and choice. This legislation is essential to preventing harmful consolidation and ensuring that national banking policy continues to serve consumers and the real economy in every state.