D.C. S & Ls May Need Interstate Branches: S&L Interstate Branch Issue Before Bank Board
Recently approved legislation and falling interest rates may signal better times for the savings and loan industry, but in a new competitive environment interstate branching in metropolitan Washington may be the only viable solution to the problems of some institutions.</br></br>Convinced of that, the two biggest S&Ls in the District have put the interstate branching issue squarely before the Federal Home Loan Bank Board. Less than a month after National Permanent Federal asked the regulatory agency to change its charter, Columbia First Federal has filed an application to become a Maryland association.</br></br>fects on the savings and loan industry in the area as well as significant implications for the cityÛªs tax base.</br></br>Although the District will begin a three-year phase-out of the gross earnings tax next year, both S&Ls would save considerable sums by moving to Maryland. National Permanent pays about $2 million annually in gross earnings taxes, and Columbia First estimates it would have saved at least $3 million between 1979 and 1981 if it had been a Maryland-based S&L.</br></br>The 6 percent tax on gross earnings of financial institutionsÛÓa sore point in WashingtonÛªs business communityÛÓhas caused.an