Banks and Trust Companies

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The banking system in the U.S. is very diverse, ranging from single-office community banks to global financial conglomerates with thousands of branches and operating centers. Bank organizers can select either a state charter issued by a state agency or a national charter issued by the Office of the Comptroller of the Currency (OCC). This dual banking system is unique in the world financial system and has been in existence since 1863. It encourages innovation and competition in banking. Currently, 78% of bank charters in the U.S. are issued by state banking authorities.

State regulators have a long history of innovation to improve the regulatory and supervisory processes to ensure their state’s banking system is safe and sound for its citizens while enabling convenience and fostering economic vitality. Many commonplace bank products and services evolved because of the regulatory flexibility fostered by the dual banking system, which is one of the strengths of the state banking system. Consumers, businesses, and the economy benefit from the ability to choose among a wide range of financial service providers.

The regulation, supervision, and examination of banks in Texas ensures that their activities are conducted in a safe and sound manner and in compliance with applicable banking laws. The primary function of the Department’s Bank & Trust Division is to examine and supervise banks chartered by the state of Texas. The examination programs focus on an entity's overall financial health, management practices, information technology risks, and compliance with state and federal laws.

 

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