SB 727
Relating to bank merger by interstate branching
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill clarifies the requirements for out-of-state banks seeking to merge with or acquire West Virginia banks that operate branches within the state. Specifically, it mandates that any resulting bank maintaining a West Virginia branch must confirm compliance with West Virginia laws, including consumer protection laws, deposit insurance regulations, and capital requirements. The bill aims to ensure that mergers do not unduly concentrate deposit control in the acquiring bank and to provide a written assurance of ongoing compliance.
Key provisions
- Requires out-of-state banks acquiring West Virginia banks to confirm compliance with West Virginia laws.
- Mandates written confirmation from the acquiring bank regarding deposit insurance conformity.
- Specifies capital requirements the resulting bank must meet.
- Addresses deposit control limitations to prevent excessive concentration of deposits.
- Establishes a process for the commissioner to waive deposit limitations under specific circumstances.
- Sets a date (May 31, 1997) for when interstate merger transactions become subject to these requirements.
- Requires the commissioner to calculate the acquisition deposit limitation based on deposit information.
- Addresses the disclosure requirements when an out-of-state bank acquires a West Virginia state-chartered bank.
Who is affected
- West Virginia banks
- Out-of-state banks
- West Virginia consumers
- State regulators (West Virginia Banking Commissioner)
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