Nutmeg State Federal Credit Union has undergone an historic change in the new year. As of Jan. 1, 2015, Nutmeg, which has an office in Bristol, changed from a federally regulated charter to a state regulated one, becoming Nutmeg State Financial Credit Union. This change brings the opportunity for greater organizational expansion, said a press release from Nutmeg.
With a vast majority of the credit union members voting in favor of this change, Nutmeg will be able to expand its membership and increase its size.
The move is part of a greater shift in the banking industry toward state regulators, said the release. The costs to work with state regulators are lower and working with local officials is much more efficient. In recent years, several other large Connecticut community banks and credit unions have made the switch to local regulation