The Banking Section is charged with the responsibility of supervising Idaho's state-chartered
commercial banks, savings banks, and bank holding companies to ensure safe and prudent
banking practices for the benefit of depositors and shareholders, maintain public
confidence, promote fair competition, and to encourage the continuation, maintenance
and preservation of the dual banking system. The Department shares many of the same
objectives as the Conference of State Bank Supervisors (CSBS), which endeavors to
support state banking supervisors, state-chartered banks, and the state banking
system by promoting the state banking charter as the "charter of choice." CSBS offers
training for both bankers and regulators, provides a timely source of relevant information
and guidance, and maintains a system of coordination within the banking community.
The close working relationship with CSBS has been beneficial to the Department in
meeting its regulatory responsibilities. Idaho was the 16th state banking department
to be accredited under the CSBS Accreditation Program, and the first western state
to achieve that distinction.
In addition, the Banking Section regulates licensed business and industrial development
corporations and independent trust companies.
The Department continues to work closely with federal and other state regulatory
agencies in order to provide seamless supervision, minimize disruption and costs
for the banking industry, and effectively utilize supervisory/regulatory resources.
Our primary tool in this endeavor is close coordination of examinations. Teams for
commercial, trust, and information technology examinations frequently include both
state and federal examiners. In at least one instance the examination team included
examiners from two federal and four state agencies. We also continue to provide
and support a "single point of contact" for state chartered institutions operating
on a multi-state basis.
Regulatory Fees/Regulatory Burden
The department is strongly committed to providing reasonable regulation without
excessive costs to industry. Our regulatory fees remain among the lowest in the
nation. Annual assessments charged to banks have been discounted from the statutory
level since 1987. Over those years, the discount has resulted in significant savings
for state-chartered banks. The Department does not charge examination fees and most
applications are processed for nominal fees, or no fee. Idaho financial institutions
pay significantly less than their federal counterparts.
The Conference of State Bank Supervisors has established accreditation standards for bank
supervision and regulation. The accreditation process requires a detailed review of all
factors needed to have a fully functional regulatory organization. The bank section was
initially accredited in 1990. Every year the accreditation committee requires updated information.
A full-scale reaccreditation occurs every five years, and last occurred in 2015. The review
included extensive self-analysis of our operations followed by an on-site audit by a team of
subject experts. The section passed its reaccreditation with no significant problems or deficiencies.
Banking Section Online Resources: