Connecticut 2024 Regular Session

Connecticut House Bill HB05145

Introduced
2/15/24  
Introduced
2/15/24  

Caption

An Act Concerning Innovation Banks.

Impact

The introduction of innovation banks represents a significant shift in the Connecticut banking landscape, as it allows institutions to operate with less regulatory burden compared to traditional banks that accept retail deposits. The legislation outlines specific obligations that these banks must adhere to, which includes maintaining adequate capital reserves and undergoing regulatory assessments. This move is intended to enhance financial innovation within the state while carefully balancing the need for consumer protection and financial stability.

Summary

House Bill 05145, titled 'An Act Concerning Innovation Banks,' aims to establish a new category of banks in Connecticut defined as innovation banks. These banks will not be permitted to accept retail deposits and will not require insurance of deposits from the Federal Deposit Insurance Corporation (FDIC). The primary objective of this legislation is to foster a more flexible banking environment that encourages banking innovations while maintaining regulatory oversight. The act proposes amendments to various banking statutes to include definitions and requirements specific to innovation banks.

Contention

Notable points of contention surrounding HB 05145 include concerns from traditional banking institutions about potential competitive disadvantages and from consumer advocates regarding the risks associated with unregulated or lightly regulated banking practices. Critics may argue that the establishment of innovation banks could lead to a decrease in consumer confidence and an increase in the risks of financial instability if proper regulatory frameworks are not firmly established and enforced. Additionally, discussions about ensuring adequate oversight and capital requirements for these banks are likely to be focal points as the bill progresses through the legislative process.

Companion Bills

No companion bills found.

Previously Filed As

CT HB05142

An Act Concerning Consumer Credit, Certain Bank Real Estate Improvements, The Connecticut Uniform Securities Act, Shared Appreciation Agreements, Innovation Banks, The Community Bank And Community Credit Union Program And Technical Revisions To The Banking Statutes.

CT SB01033

An Act Concerning Various Revisions To The Banking Statutes.

CT SB00067

An Act Concerning Revisions To The Banking Statutes.

CT SB01087

An Act Concerning Limits On Loans To One Obligor And Connecticut Bank Investments.

CT SB00501

An Act Concerning Motor Vehicle Assessments For Property Taxation, Innovation Banks, The Interest On Certain Tax Underpayments, The Assessment On Insurers, School Building Projects, The South Central Connecticut Regional Water Authority Charter And Certain State Historic Preservation Officer Procedures.

CT SB01109

An Act Concerning Banks.

CT HB05268

An Act Concerning Consumer Credit Licenses.

CT HB05070

An Act Concerning Loan Production Offices, Interstate Branching And Nonbank Trustees.

CT SB00848

An Act Implementing The Department Of Banking's Recommended Changes To The Banking Statutes Concerning Financial Institutions And Consumer Credit Licenses.

CT SB00826

An Act Concerning The Strengthening Of Consumer Credit License Protections.

Similar Bills

CT HB05142

An Act Concerning Consumer Credit, Certain Bank Real Estate Improvements, The Connecticut Uniform Securities Act, Shared Appreciation Agreements, Innovation Banks, The Community Bank And Community Credit Union Program And Technical Revisions To The Banking Statutes.

CT SB00501

An Act Concerning Motor Vehicle Assessments For Property Taxation, Innovation Banks, The Interest On Certain Tax Underpayments, The Assessment On Insurers, School Building Projects, The South Central Connecticut Regional Water Authority Charter And Certain State Historic Preservation Officer Procedures.

CT SB01256

An Act Concerning The Organization, Administration And Receivership Of Certain Financial Institutions.

CT SB00911

An Act Concerning Money Transmission And Consumer Collection Agencies.

CT SB01033

An Act Concerning Various Revisions To The Banking Statutes.

CT HB05070

An Act Concerning Loan Production Offices, Interstate Branching And Nonbank Trustees.

CT SB01109

An Act Concerning Banks.

CT SB00067

An Act Concerning Revisions To The Banking Statutes.