Governor signs bill that cuts red tape for state-chartered banks
New law closes regulatory gap between federal and state meeting requirements.
DENVER (May 4, 2016) -- Today Gov. John W. Hickenlooper signed into law a bill that supports Colorado’s community banks by closing a regulatory gap involving legal requirements around how often their boards of directors meet.
SB 16-126, “Concerning Parity of State-Chartered Banks with Federally 102 Chartered Banks Regarding Frequency of Meetings,” provides community banks’ boards of directors the option to meet at least quarterly instead of the current requirements of having to meet monthly. The change makes Colorado law, which had stricter requirements, more closely match federal law concerning how often a community bank’s board of directors must meet.
“This bill solves a simple but fundamental issue by closing the gap between state and federal requirements,” noted Chris Myklebust, State Bank Commissioner. “Bank boards of directors are highly involved in the managements of their institutions and will now have more flexibility and authority involving how — and how often — their boards meet. Furthermore, the law still provides appropriate regulatory oversite in that if the State Banking Board identifies the need for a particular bank to meet monthly for regulatory reasons, then the authority exists with that body to ensure that will happen.”
SB16-126 sponsors included senators Roberts, Baumgardner, Cooke, Heath, Holbert, Lundberg, Marble, Merrifield, Newell, Scheffel, Tate and Woods; and representatives Garnett, Nordberg, Arndt, Becker K., Brown, Kraft-Tharp, Lontine, Pabon, Ryden and Winter.
“We are fortunate to have a State Bank Commissioner actively looking to cut unnecessary red tape and close regulatory gaps to help our community banks focus on what they do best — serve their customers,” said Colorado Department of Regulatory Agencies Executive Director Joe Neguse. “The Department of Regulatory Agencies, in which the Division of Banking is part of, is committed to consumer protection through the safety and soundness of Colorado’s state chartered banks.”
The Department of Regulatory Agencies (DORA) is dedicated to preserving the integrity of the marketplace and is committed to promoting a fair and competitive business environment in Colorado. Consumer protection is our mission. Visit www.dora.colorado.gov for more information or call 303-894-7855 / toll free 1-800-886-7675.
Media Contacts:Rebecca Laurie
Department of Regulatory Agencies
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