FLORIDA PERSONNEL ASSOCIATION

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FLORIDA PERSONNEL ASSOCIATION Presentation By Joh
n A. Pullen Financial Administrator Office of
Financial Regulation
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Financial Institution Regulation In Florida
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How Are
Institutions Different?
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• Prior to 1980-82, there were several distinct
  differences between banks, credit unions and
  savings loans

• SLs made only mortgage loans
• SLs and credit unions could not offer
  transaction accounts (demand deposit accounts)
• SLs had restricted investment powers

• Depository Institution Deregulation Monetary
  Control Act of 1980

• NOW accounts
• Expanded lending powers
• Interest rate deregulation

• Garn-St. Germain Act of 1982 completed the
  deregulation process

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What is the Dual Banking
System?
Nationally/ Federally Chartered Financial
Institutions
State Chartered Financial Institutions
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Characteristics of the Dual Banking System

• Unique

• Has produced the worlds strongest, most diverse
  financial institution industry and

• Allows individual states to tailor their
  regulatory structures to address the particular
  needs of their local economies, citizens and
  financial institutions, while consistently
  promoting the availability of safe and sound
  banking systems to all people.

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OFR
FRB
FINANCIAL INSTITUTION REGULATION IN FLORIDA
OTS
FDIC
NCUA
OCC
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• National Banks
• Chartered by
• Admitted to Federal Reserve membership by
• Admitted to FDIC Insurance by
• Examined by
• Reserves required by
• Subject to regulation of
• Mergers branches authorized by
• Bank holding companies controlled by

NCUA

• State Member Banks
• Chartered by
• Admitted to Federal Reserve membership by
• Admitted to FDIC Insurance by
• Examined by
• Reserves required by
• Subject to regulation of
• Mergers branches authorized by
• Bank holding companies controlled by

FDIC
Federal Government
FRB

• Insured Non-member Banks
• Chartered by
• Admitted to FDIC Insurance by
• Examined by
• Reserves required by
• Subject to regulation of
• Mergers branches authorized by
• Bank holding companies controlled by

50 States
OCC

• Credit Unions and SLs
• Chartered by
• Examined by
• Submits reports to
• Reserves required by
• Subject to regulation of
• Mergers branches authorized by
• Insured by

OTS
The Tangled Web of Financial Institution
Regulation
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Office of Financial Regulation

• Through the Office of Financial Regulation (OFR),
  state-chartered financial institutions are
  licensed, examined and regulated to ensure that
  private funds invested in Florida's
  state-chartered financial institutions are
  protected from potential loss due to failure or
  insolvency.
• OFR has regulatory authority over state-chartered
  commercial banks, credit unions, savings loan
  associations, savings banks, non-deposit trust
  companies, international banking agencies, branch
  offices, representative offices and
  administrative offices.

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Federal Deposit Insurance Corporation

• The Federal Deposit Insurance Corporation (FDIC)
  preserves and promotes public confidence in the
  U.S. financial system by insuring deposits in
  banks and thrift institutions for up to 100,000
  by identifying, monitoring and addressing risks
  to the deposit insurance funds and by limiting
  the effect on the economy and the financial
  system when a bank or thrift institution fails.
• The FDIC is the primary federal regulator of
  banks that are chartered by the states that do
  not join the Federal Reserve System. In addition,
  the FDIC is the back-up supervisor for the
  remaining insured banks and thrift institutions.

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Federal Reserve

• The Federal Reserve's duties fall into four
  general areas
• supervising and regulating state member banks,
  bank holding companies, and foreign bank offices
  
• conducting the nation's monetary policy
• maintaining the stability of the financial
  system and containing systemic risk that may
  arise in financial markets and
• providing certain financial services to the
  United States government, to the public, to
  financial institutions, and to foreign official
  institutions.

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Comptroller of the Currency

• The Office of the Comptroller of the Currency
  (OCC) charters, regulates, and supervises all
  national banks.
• It also supervises the federal branches and
  agencies of foreign banks.

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Office of Thrift Supervision

• The Office of Thrift Supervision (OTS) is the
  chartering authority for federal savings
  associations.
• The OTS supervises savings associations and their
  holding companies in order to maintain their
  safety and soundness and compliance with consumer
  laws, and to encourage a competitive industry
  that meets America's financial services needs.

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National Credit Union Administration

• The National Credit Union Administration (NCUA)
  is the independent federal agency that charters
  and supervises federal credit unions.
• NCUA, with the backing of the full faith and
  credit of the U.S. government, operates the
  National Credit Union Share Insurance Fund
  (NCUSIF), insuring the savings of 80 million
  account holders in all federal credit unions and
  many state-chartered credit unions.

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Financial Institution Regulators
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WHAT OFR DOES
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Licensing Chartering
The Office of Financial Regulation Hereby
Authorizes______________ To Conduct A General
Banking Business In ________, Florida
__________ Director
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Licensing Chartering
Our bank will be the only locally-owned bank in
the PSA. Furthermore,
A Growth Area
First Chad State Bank Public File
Box 1 of 9
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The Licensing Chartering function requires
staff to wear a variety of hats during the
application process
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Regulatory Thorough review of applications to
verify that all statutory requirements necessary
for approval have been met or can be met.

Investigative Checking backgrounds of de novo
and non-bank acquisition applicants
Customer Service De novo applicants and
financial institutions are OFRs customers.
Prompt, courteous, and knowledgeable service is
essential!
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• De Novo Financial Institutions
• Banks
• Trust Companies
• International Offices
• Agencies
• Representative Offices
• Administrative Offices
• Credit Unions
• Savings Banks
• Savings Loan Associations

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• Mergers
• Acquisitions/Change of Control
• Purchase Assumptions
• Conversions
• Federal to State
• Cross Industry
• Intl. Agency to Branch
• Branch
• Trust Power/Trust Service Office
• Main Office Relocation

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Financial Institution Regulation
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Organizational Chart

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The Regulatory Side

• Examines state financial institutions

• Reviews audit reports and other financial data
  submitted by financial institutions

• Prepares and monitors financial institution
  compliance with administrative actions consisting
  of board resolutions, memorandums of
  understanding, cease and desist orders, written
  agreements, and removal and prohibition orders.

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State Financial InstitutionNumbers/AssetsDecembe
r 31, 2003

• 194 Commercial Banks
• 105 Credit Unions
• 16 Trust Companies
• 50 International Bank Offices
• Total State Assets

• 45,857,980,000
• 14,662,842,371
• 62,942,000
• 14,778,590,000
• 75,362,354,371

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USEFUL URLs
Office of Financial Regulation http//www.dbf.sta
te.fl.us/banking.html FDIC Search
Engine http//www2.fdic.gov/idasp/main.asp Bank
Rating Services http//www.fdic.gov/bank/individu
al/bank/index.htmlbankrank Bank Rate
Monitor http//www.bankrate.com/brm/default.asp
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