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| Additional information |
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| New York State Banking Department (NYSBD) |
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Mission statement:
To allow the financial industry to expand and prosper through judicious regulation and vigilant supervision, to educate and protect consumers while promoting economic growth and ensuring that the financial system is safe and accessible to all. |
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Overview:
With its main office only a few blocks from Wall Street, the New York State Banking Department is headquartered near the center of the world's financial capital. The Department is the primary regulator for state-licensed and state-chartered financial entities, including domestic banks, foreign agencies, branches and representative offices, savings institutions and trust companies, credit unions and other financial institutions operating in New York including mortgage bankers and brokers, check cashers, money transmitters, and licensed lenders, among others. Total assets of the institutions regulated are nearly $2.2 trillion.
The Department's legislative mandate is to insure the safe and sound conduct of these businesses, to conserve assets, to prevent unsound and destructive competition, to maintain public confidence in the banking system, and to protect the public interest and the interests of depositors, creditors and shareholders.
Established in1851, the New York State Banking Department is the oldest bank regulatory agency in the nation. Almost 73 percent of the agency's nearly 600 full-time employees are bank examiners. Yet New York State's taxpayers aren't asked to pay for bank regulation. Instead, the revenues to fund the Department's operating budget are derived from the fees paid to it by state-chartered institutions.
In addition to its main office at One State Street in New York City, the agency has offices in Albany, the state capital, and at 333 East Washington Street, in Syracuse. |
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History:
New York State banking policy began with an act in 1782 prohibiting the operation of any bank within the State, except for the Federal Bank of North America. In 1791, the legislature authorized a charter for the first State bank, the Bank of New York, and thereafter chartered other banks by special acts. A law in 1829 set up the Bank Fund, later renamed the Safety Fund, to guarantee the payment of debts of insolvent banks. All State-chartered banks were required to make an annual contribution to the fund, which was managed by the State treasurer. The same law provided for the appointment of three bank commissioners to examine the financial status of banks and to report annually to the legislature.
State regulation of banks was altered by the Banking Law of 1838 which required banks to file certificates of incorporation with the Secretary of State and report annually to the Comptroller. In 1843, the Comptroller was authorized to examine only when there was reason to suspect that a bank had made an incorrect report or was in an unsafe and unsound condition to continue business. On April 15, 1851, the legislature created the Banking Department with a chief officer to be known as the Superintendent. The first Superintendent of Banks was Daniel B. St. John. No major alteration of banking policy occurred for the next seventy-five years.
In 1932, the Banking Board was created to advise and cooperate with the Banking Department in the formulation of banking standards and to exercise power to approve or disapprove the issuance of bank charters and licenses and the establishment of branch banks.
The Banking Law requires the Department to examine the condition and affairs of all institutions subject to its supervision at prescribed intervals and to issue periodic calls for reports of condition.
The Department is included in the Executive Budget, and all expenses are paid by the Comptroller out of State funds, being reimbursed by the amounts assessed against the institutions subject to supervision. Expenses of examination and operation are paid entirely by the institutions subject to regulation. |
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