BANKS
The Division of Financial Institutions
regulates state-chartered banks in Ohio pursuant to Chapters 1101. to
1133. of the Ohio Revised Code.
CHARTERING
Five or more natural persons (or a corporation under limited circumstances)
wishing to incorporate and obtain a charter for a bank in Ohio must
submit an application, a detailed business plan, fingerprint cards,
and an application fee. The Division must find that the proposed bank
will serve the convenience and needs of the public, that the area will
adequately support the proposed bank, that the competence, experience,
and integrity of the proposed officers and directors are sufficient,
and that capital is adequate. Banks are required to be insured by the
Federal Deposit Insurance Corporation (FDIC).
Banks pay an annual assessment fee. New branch locations, change of
control, and many other business activities must be pre-approved by
the Division and the appropriate federal regulatory agency.
COMPLIANCE
State-chartered banks must comply with a variety of state and federal
statutes and regulations governing their operations and operations of
subsidiaries. These range from specific limitations on affiliate transactions
and loans to one borrower to ongoing capital requirements and director/officer
responsibilities.
Both state and federal regulatory agencies conduct periodic safety and
soundness examinations, reviewing policies, controls, and activities
of state-chartered commercial banks. Bank examination information is
privileged and confidential and may not be disclosed unless the Division
takes administrative action or the matter involves a criminal investigation.
Additionally, no person may conduct business in this state using the
word "bank," "banker," or "banking" in
its name without the permission of the Division or conduct business
in this state as a bank without being properly chartered.
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