A bill for an act relating to matters under the purview of the banking division of the department of commerce, including permissible investments, notice requirements, and requirements for a person obtaining control of a state bank.(See SF 196.)
Impact
The provisions of SSB1021 are expected to have a notable impact on the operations of state banks. By allowing flexible methods of communication, the bill seeks to streamline processes during significant meetings, including those related to mergers and control changes. The amendments regarding investments enable state banks to engage in tax equity financing transactions—investments in projects that generate tax credits—up to a limit of 20% of their aggregate capital. This change allows for more significant financial engagement in community-based projects, potentially stimulating economic growth.
Summary
Senate Study Bill 1021 addresses various matters within the jurisdiction of the banking division of the Department of Commerce. The bill introduces significant amendments to existing banking regulations, particularly concerning permissible investments and notice delivery methods for meetings. One key provision is that state banks may now utilize any method of delivery permitted by Iowa Code when providing notice to shareholders about meetings, a change aimed at modernizing communication practices and increasing efficiency in shareholder engagement.
Contention
Despite the potential benefits, the bill has sparked discussion regarding the balance of regulatory oversight and the risks associated with increased investment flexibility. Critics may voice concerns related to the rigorous approval process for individuals seeking control of a state bank, ensuring such changes do not jeopardize depositors' interests. The requirement for a certificate of approval from the superintendent before any control change also ties into broader discussions about accountability and risk management within the banking sector. As the legislative process continues, stakeholders may debate the adequacy of these safeguards against the backdrop of evolving financial landscapes.
Related
A bill for an act relating to matters under the purview of the banking division of the department of commerce, including permissible investments, notice requirements, and requirements for a person obtaining control of a state bank.(See HF 136.)
IA HF136
Replaced by
A bill for an act relating to matters under the purview of the banking division of the department of commerce, including permissible investments, notice requirements, and requirements for a person obtaining control of a state bank. (Formerly HSB 30.) Effective date: 07/01/2023.
IA SF196
Replaced by
A bill for an act relating to matters under the purview of the banking division of the department of commerce, including permissible investments, notice requirements, and requirements for a person obtaining control of a state bank.(Formerly SSB 1021.)
A bill for an act relating to matters under the purview of the banking division of the department of commerce, including permissible investments, notice requirements, and requirements for a person obtaining control of a state bank.(See HF 136.)
A bill for an act relating to matters under the purview of the banking division of the department of commerce, including permissible investments, notice requirements, and requirements for a person obtaining control of a state bank.(Formerly SSB 1021.)
A bill for an act relating to matters under the purview of the banking division of the department of commerce, including permissible investments, notice requirements, and requirements for a person obtaining control of a state bank. (Formerly HSB 30.) Effective date: 07/01/2023.
A bill for an act relating to matters under the purview of the credit union division of the department of commerce. (Formerly HSB 35.) Effective date: 07/01/2024.
A bill for an act relating to matters under the purview of the department of veterans affairs, including county commissions of veteran affairs and cemetery expenditures.(See SF 444.)
A bill for an act relating to matters under the purview of the department of veterans affairs, including county commissions of veteran affairs and cemetery expenditures.(Formerly SF 236.)
A bill for an act relating to matters under the purview of the department of veterans affairs, including county commissions of veteran affairs and cemetery expenditures.(See HF 259.)