Public Banks - DFPI

Public Banks - DFPI Public Banks Public banks are defined as corporations, organized as either a nonprofit mutual benefit corporation or a nonprofit public benefit corporation for the purpose of engaging in the commercial banking business or industrial banking business, that is wholly owned by a local agency, as specified, local agencies, or a joint powers authority. Assembly Bill 857 , which took effect on January 1, 2020, creates a process for a local agency to establish a public bank, subject to specific requirements. Among other things, the bill requires a public bank to obtain a certificate of authorization to transact business as a bank from the Department of Financial Protection and Innovation (DFPI) and to obtain Federal Deposit Insurance Corporation (FDIC) insurance. A public bank may engage in banking activities, including infrastructure lending, wholesale lending, participation lending, and certain retail activities. A public bank may not compete with local financial institutions or engage in certain retail activities without partnering with a local financial institution. The DFPI is prohibited by law from licensing more than two public banks per calendar year and more than ten public banks in total. Laws & Regulations California Code of Regulations California Financial Code Reference Benefits of California State Bank Charter Publications Directory of State Chartered Banks Commercial Bank Forms State Chartered Banking Statistics Forms Notice to Individual – Use of Information DFPI 02 – Personal Financial Statement (PDF) DFPI 03 – Confidential Resume (PDF) DFPI 10 – Application for Authority to Organize Bank (PDF) DFPI 25 – Uniform California Application/Notice (PDF) DFPI 88 – Application for Approval to Act as Approved Depository (PDF) DFPI 93 – Appt for Approval for Withdrawal/Release of Eligible Asset (PDF) DFPI 379 – Written Consent Form (PDF) DFPI 507C – Call Report Certification Page for State Chartered Banks DFPI 550 – Emergency Contact Person Information (PDF) DFPI 700 – Application for Authorization to Invest in Corporation (PDF) DFPI 704 – Agreement to Comply with Regulations (PDF) DFPI 706 – Appointment of Commissioner of the Department of Financial Protection and Innovation as Agent for Service of Process (PDF) DFPI 8016 – Request for Live Scan Service and Live Scan Process Instruction Form (PDF) FDIC 3064-0006 – Interagency Biographical and Financial Report Form and Instructions (PDF) FDIC 3064-0006 – Department of Financial Protection and Innovation Supplemental Instructions (PDF) Translated Residential Mortgage Loan Forms and Pre-Foreclosure Notices Tools & Resources Bank Assessment Calculator Best Practices to Reduce Corporate Account Takeovers (PDF) FAQs (PDF) Copy of Sample Risk Assessments (PDF) Sample of Employee Education (PDF) News & Info Links Newsroom Press Releases Monthly Bulletins Important Notices How to reach us: Department of Financial Protection and Innovation Division of Corporations and Financial Institutions One Sansome Street, Suite 600 San Francisco, CA 94104-4428 Phone: (415) 263-8500 Fax: (415) 288-8830 Email: [email protected]