SENATE BILL REPORT

                                    SB 5737

                            AS OF FEBRUARY 25, 1991

Brief Description:  Creating a division of financial institutions in the department of general services.

SPONSORS:Senators von Reichbauer, Owen, Rasmussen, Johnson, Moore, McCaslin, Sellar and West.

SENATE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Staff:  Benson Porter (786‑7470)

Hearing Dates:February 26, 1991

BACKGROUND:

State-chartered financial institutions are regulated by two separate divisions within the Department of General Administration.  The Division of Banking charters, examines, and regulates various state-chartered institutions including commercial banks, savings banks, alien institutions, industrial loan companies, and consumer finance companies.  The Division of Savings and Loan charters, examines, and regulates state-chartered savings and loan associations and credit unions.  Both divisions maintain their own administrative and examination staff.

Some support has been expressed in the economic and structural benefits that may be achieved by consolidating these divisions.

SUMMARY:

The functions and powers of the Division of Banking and the Division of Savings and Loan are consolidated.  The resulting entity is the Division of Financial Institutions which is within the Department of General Administration.

Appropriation:  none

Revenue:  none

Fiscal Note:  requested