Robe r ta Hollinshe ad Dire c tor of Ba nks Robe rta .Hollinshe a - - PowerPoint PPT Presentation

Robe r ta Hollinshe ad

Dire c tor of Ba nks Robe rta .Hollinshe a d@dfi.wa .g ov Pre se nta tion to the Infra struc ture a nd Public De pository T a sk F

• rc e

Oc tobe r 20, 2017

Disc ussion T

• pic s

 I

ntro duc tio n to DF I

 Ba nk Cha rte r Se le c tio n  F

e de ra l Re g ula to rs

 Prude ntia l Re g ula tio n  CAME

L S Ra ting Syste m, Are a s o f Re vie w

 Re g ula to ry E

nfo rc e me nt Ac tio n

 F

• rming a Ba nk (unde r c urre nt rule s)

 Ca nna b is Ba nking in Wa shing to n

DF I – Mission, F unc tion and F unding

Mission. DF

I re g ula te s fina nc ia l se rvic e s to pro te c t a nd e duc a te the pub lic a nd pro mo te e c o no mic vita lity.

Re g ula tion of F

ina nc ia l Se rvic e Provide rs.

DF I pro vide s re g ula to ry o ve rsig ht fo r o ur sta te ’ s fina nc ia l se rvic e pro vide rs.

Se lf- F

unding . DF

I is se lf-suppo rting . DF I ’ s

• pe ra ting re ve nue s a re pa id b y the

fina nc ia l se rvic e pro vide rs we re g ula te .

Dire c tor-Glo ria Pa pie z

DIVISIONS: Banks Credit Unions Consumer Services Securities Administration

Core mission:

• Safety and

Soundness

• Compliance
• Safety and

Soundness

• Compliance
• Consumer Protection
• Compliance
• Consumer

Protection

• Compliance
• Administrative Support

Jurisdiction: State Chartered Banks and Trust Companies State Chartered Credit Unions Non-Depository Financial Institutions:

• Consumer Loan Companies
• Mortgage Brokers
• Mortgage Loan Originators
• Residential Mortgage Loan

Servicers

• Check Casher and Sellers
• Payday Lenders
• Escrow Companies and

Officers

• Money Transmitters and

Currency Exchangers

• Providers of TAX Refund

Anticipation Loans (RALS) Securities Broker/Dealers WA Securities Offerings Investment Advisers and Reps Small business (technical assistance

• nly)

Investment Fraud Franchises Business Opportunities Offerings

Legal Affairs Policy and Legislative Public Records Information Technology Budget & Accounting Human Resources Communications & Outreach Facilities

Core Activities:

• Chartering
• Examination
• Enforcement
• Education and

Outreach

• Chartering
• Examination
• Enforcement
• Education and

Outreach

• Licensing
• Examination
• Enforcement
• Education and Outreach
• Registration
• Examination
• Enforcement
• Education and

Outreach

• Agency Management

Administrative Services

• Education and Outreach

ROLES OF DFI DIVISIONS

Banking Conditions in Washington

T he Numbe r s

Ba nks a re sta b le a nd in g o o d c o nditio n Co nso lida tio n o f Sta te Cha rte re d Ba nks

 57 in 2012; 51 in 2015; a nd 45 no w  No ne w b a nking a c tivity

Gro wth in Asse ts – Org a nic a nd me rg e r/ a c q uisitio n

 T

• ta l a sse ts g re w fro m $48.7 b illio n to $55.4 b illio n in

the pa st 2 ye a rs

 Ave ra g e b a nk size g re w fro m $974 millio n to $1.23

b illio n in a sse ts in the pa st 2 ye a rs

 Wa shing to n lo a n g ro wth ra te 10% o utpa c e s na tio na l

a ve ra g e o f 7%

Pre and Post Crisis Snapshot

Number of Institutions: 2008-2016

72 9 2 7 40 11 1 7 37 9 1 11 10 20 30 40 50 60 70 80 Commerical Banks Savings Banks Alien Bank Branches Trust Companies Dec-08 Dec-14 Sep-16

7

How is a Ba nk Cha rte re d?

Prima ry F e de ra l Re g ula to r Ba nk Cha rte r

Co mmunity Ba nk Sta te Cha rte r (DF I) F e d e ra l Re se rve Me mb e r (F RB) F e d e ra l De po sit Insura nc e Co rpo ra tio n (F DIC) Na tio na l Cha rte r Offic e o f the Co mptro lle r o f the Curre nc y (OCC)

F e de ra l Ba nking Re g ula tors

F e de ra l Ba nking Re g ula tors

 F

e de ra l De po sit I nsura nc e Co rpo ra tio n (F DI C) – I nsure r o f de po sits, supe rvise s sta te -c ha rte re d no n-me mb e r b a nks, re c e ive r a nd re so lutio n o f fa ile d b a nks

 F

e de ra l Re se rve (F RB) – Supe rvise s sta te - c ha rte re d me mb e r b a nks, b a nk ho lding c o mpa nie s, pro vide s a c c e ss to the pa yme nt syste m

 Co nsume r F

ina nc ia l Pro te c tio n Bure a u (CF PB) – Supe rvise s c o nsume r c o mplia nc e o n b a nks

• ve r $10 Billio n in a sse ts

 Offic e o f the Co mptro lle r o f the Curre nc y

(OCC) – Supe rvise s na tio na l b a nks

Wha t is a Prude ntia l Re g ula tor?

 Supe rvise s de po sito ry institutio ns a nd

e sta b lishe s re q uire me nts a nd limits o n risk ta king

 E

nfo rc e s sta te a nd fe de ra l la ws

 Co nduc ts Sa fe ty a nd So undne ss

E xa mina tio n a nd Co nsume r Co mplia nc e E xa mina tio ns – all b anks re g ulate d e sse ntially the same

 Go a l is to pro vide a c c e ss to c re dit a nd

pro te c t de po sito rs funds

Safe ty and Soundne ss - CAME L S

 Ca pita l  Asse t Qua lity  Ma na g e me nt  E

a rning s

 L

iq uidity

 Se nsitivity to Ma rke t

Risk

https:/ / www.yo utub e .c o m/ use r/ F DI Cc ha nne l

Othe r Are a s of Re vie w

 Re g ula to ry Re po rting - Ca ll Re po rt  Ba nk Se c re c y Ac t/ Anti Mo ne y L

a unde ring a nd Offic e o f F

• re ig n Asse t Co ntro l

 I

nfo rma tio n T e c hno lo g y a nd Se c urity

 Mo rtg a g e Ba nking  Audit F

unc tio n

 I

nte rna l Ro utine s a nd Co ntro ls

 Co mplia nc e with Rule s a nd Re g ula tio ns

F e de r al and State Re gulations Snapshot

 Hundre ds o f rule s a nd re g ula tio ns. A fe w

e xa mple s:

 Re a l E

sta te L e nding Sta nda rds / L T V Re q uire me nts (Pa rt 365 F DI C R&R)

 Ca pita l Ma inte na nc e (Pa rt 325 F

DI C R&R)

 Sta nda rds fo r Sa fe ty a nd So undne ss (Pa rt

364 F DI C R&R)

 Sta te L

e g a l L e nding L imit – Wa shing to n RCW 30A.04.111 (20% o f Ba nk Ca pita l)

 F

RB Re g ula tio n O – I nside r tra nsa c tio ns

Washington State Banks – Statute s and Rule s

RCWs 30A Wa shing to n Co mme rc ia l

Ba nk Ac t

32 Wa shing to n Sa ving s Ba nk Ac t WAC 208-512

Re gulator y Supe r visor y Powe r s

 Onc e c o nside re d le ss tha n sa tisfa c to ry

– e xa mina tio n fre q ue nc y inc re a se s

 I

nfo rma l E nfo rc e me nt Ac tio n

 F

• rma l E

nfo rc e me nt Ac tio n - Pub lic

 Co nse nt Orde rs (Ce a se a nd De sist)  I

ndividua ls a nd Org a niza tio ns

 Civil Mo ne y Pe na ltie s  Clo sure

Industry Consolida tion & Sta ts

 5,787 F

DI C insure d b a nks a s o f Q2 2017

 1985 this numb e r wa s > 18,000

 Ba nks with le ss tha n $10B in a sse ts c o ntro l

18% o f the industry

 78% o f a ll b a nks a re sta te c ha rte re d  While 4 na tio na l b a nks ho ld 41% o f the

industry a sse ts

 Ha ndful o f ne w b a nks fo rme d in 2016 a nd

2017 (no ne in Wa shing to n)

 Ve ry tra ditio na l b usine ss mo de l a nd lo ts o f

c a pita l

How to form a Ba nk?

 F

DI C Handb o o k fo r Org anize rs o f De No vo I nstitutio ns – April 2017, g o o d g uidanc e

 F

• rm a Bo a rd o f Dire c to rs

 Se le c t Ba nk Ma na g e me nt  Cre a te a Busine ss Pla n & F

ina nc ia l Pro je c tio ns (de fine the ma rke t ne e d)

 De te rmine ho w muc h c a pita l is ne e de d

ta king into c o nside ra tio n b usine ss pla n a nd risk pro file

 Applic a tio n a nd inve stig a tio n

Ba nking the Ma rijua na I ndustry

Se ve ra l b a nks a nd c re dit unio ns

a c tive ly b a nk the industry (prima rily a c c e pt de po sits)

Writte n Guida nc e

 Co le Me mo ra ndum  F

inCE N Guida nc e (F I N-2014-G001)

 Suspic io us Ac tivity Re po rts

L

iq uo r a nd Ca nna b is Bo a rd

 Applic a tio n Pro c e ss  Ong o ing Mo nito ring

Q&A