Type of Institutions Supervised by the Division of Banking

Commercial Bank (e.g. FirstBank)

Commercial banks are stock corporations that make loans to businesses and consumers and offer checking and other deposit products. Banks receive deposits, hold them in a variety of different accounts, extend credit through loans and other instruments, and facilitate the movement of funds. States and the federal government each issue bank charters. State-chartered banks operate under the supervision of the Colorado Division of Banking, within the statutory framework of the Colorado Banking Code (Title 11). State-chartered banks are required to hold FDIC deposit insurance and must also comply with federal banking laws, i.e. Truth in Lending, Truth in Savings, Bank Secrecy Act.

Industrial Bank

Industrial banks are differentiated from commercial banks by the types of checking products that can be offered and exemptions from certain ownership restrictions applicable to commercial banks. The industry has evolved from a large number of very small industrial banks focused on low- to moderate-income consumer lending, plagued by severe financial problems in the late 1980s, to a small group of healthy niche lenders. Legislative changes in the last decade removed nearly all statutory and regulatory differences and implemented a requirement that industrial banks protect depositors through retention of FDIC deposit insurance. There are currently no state-chartered Industrial banks in Colorado.

Money Transmitter (e.g. Western Union)

The Colorado Money Transmitters Act (Title 12, Article 52) requires any organization selling money orders, travelers checks, or transmitting money electronically or by any other means, in Colorado, to be licensed by the Division of Banking. The Division conducts periodic examinations of the licensees to ensure financial viability, sound operating practices, and compliance with the Money Transmitters Act and federal anti-money laundering regulations.

Trust Company (e.g. Trust Company of America)

State chartered trust companies provide a variety of fiduciary services, including traditional managed trust business, administering self-directed IRA or pension funds, and administration of collective investment funds. Trust companies are authorized to invest in loans, but are prohibited from originating loans. Legislation enacted in 1989 allows state chartered trust companies to become federally insured depository institutions authorized to accept and maintain savings deposits, time deposits, and certificates of deposit. Only trust companies and state and nationally chartered banks authorized to offer fiduciary services are permitted to conduct trust company business in Colorado.