Who We Regulate - Banks And BIDCOs
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.