Division of Banking DORA State of Colorado Division of Banking


About the Division


Activities        Funding Sources        Trends        Annual Report

Activities

The Division of Banking

  • is responsible for the regulation of state chartered commercial banks, trust companies, industrial banks, and money transmitters;
  • holds charter and license application hearings and issues rules and regulations affecting regulated institutions;
  • staff conducts examinations of state chartered institutions and licensees;
  • works closely with the Federal Reserve Bank and the Federal Deposit Insurance Corporation in the regulation of commercial banks and industrial banks and certain federally insured trust companies; and,
  • is responsible for the enforcement of the Public Deposit Protection Act to protect public entity deposits held by state and national banks.

The nine-member Governor-appointed Colorado State Banking Board is the policy and rulemaking authority for the Division. The Banking Board consists of five members who are executive officers of commercial banks, an executive officer of a money transmitter company, an executive officer of a trust company, and two public members. The Banking Board conducts monthly meetings that are open to the public, which the public is encouraged to attend.

The State Bank Commissioner is the administrative head of the Division of Banking. The Commissioner is responsible for the day-to-day operation of the Division and all examinations and enforcement functions, subject to the policymaking and rulemaking authority of the Banking Board.

Funding Sources

The Division operates on a July 1 to June 30 fiscal year and is cash funded in advance through semi-annual institution assessments, specialty examination charges, and receipt of application and licensing fees. The assessment rates and fees structure are reviewed and approved by the Banking Board annually. A breakdown of the Division's budget, as well as trend information for revenues, assessment base, and the cash fund balance, can be found in the Division's 2010 Annual Report.

The Division’s approved budget for the 2010-2011 fiscal year is $4,767,118 and is broken out as shown in the charts below:

2010/2011 Appropriation
piechart
Personal Services $
3,629,706
76%
Operating $
390,313
8%
Leased Space $
166,359
4%
Legal $
88,044
2%
ADP/Indirect Other $
492,696
10%
Total $
4,767,118
100%

Expenditures and revenue are not always equal. Revenue needs and fee amounts are based on estimated expenses and the number of regulated institutions. Revenue collected that exceeds expenditures remains with the agency and is considered when calculating total revenue needed for the following year.

Trends

The Colorado economy continued to experience the slowdown that began in 2008 with the national and global economy. Colorado’s unemployment rate was approximately 9 percent as of December 31, 2010. Layoffs in virtually every sector of the economy, including the financial and business services sectors, adversely impacted bank loan portfolios. In addition, declining residential and commercial real estate sales had a negative impact.

Due to the aforementioned factors, many banks increased their capital levels and loan loss reserves in order to address future asset quality issues. This, in turn, affected their overall profitability. However, by taking strong measures, state-chartered commercial banks continued to prepare for adverse economic conditions.

Trust activities at state-chartered trust companies were also affected by the volatility in the financial markets, but the industry continued to remain profitable.
Working to Preserve Public Trust in Colorado Banking
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