SB 574
Relating to bank merger by interstate branching
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- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
Senate Bill 574 clarifies the requirements for interstate bank mergers involving West Virginia banks. Specifically, it addresses the disclosure obligations when an out-of-state bank acquires a West Virginia bank, ensuring transparency regarding deposit control and compliance with state laws. The bill also sets limits on the amount of deposits an acquiring bank can hold in West Virginia to prevent undue control over the state’s banking market. It reinforces the need for compliance with consumer protection laws, deposit insurance, and capital requirements.
Key provisions
- Establishes conditions for interstate bank mergers involving West Virginia banks.
- Requires out-of-state banks to confirm compliance with West Virginia laws, including consumer protection laws.
- Sets limits on the amount of deposits an acquiring bank can hold in West Virginia.
- Mandates that deposits of the resulting bank are insured in conformity with state regulations.
- Requires the resulting bank to meet West Virginia capital requirements.
- Defines the process for the commissioner to waive acquisition deposit limitations.
- Specifies that the commissioner will calculate the acquisition deposit limitation based on deposit information filed with authorities.
Who is affected
- West Virginia banks
- Out-of-state banks
- Bank regulators (West Virginia Commissioner of Banking and Insurance)
- Consumers of West Virginia banks
- Deposit insurance providers
Notable changes
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