About the Division
Activities
Funding Sources Trends
Annual Report
Activities
The Division
of Banking
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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 2008
Annual Report.
The following table displays the amount of revenue generated and
the amount of expenditures for the Colorado Division of Banking
for fiscal years 2007-08, 2008-2009, and an estimate for fiscal year
2009-2010. 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.
Fiscal
Year |
Revenue |
Expenditures |
|---|---|---|
2007-2008
(Actual) |
$4,034,988 |
$4,037,267 |
|
2008-2009
(Actual) |
$4,332,124 |
$4,179,268 |
|
2009-2010
(Estimate) |
$4,827,196 |
$4,827,196 |
The following pie chart shows the source of revenue for Fiscal Year 2009-2010.
(91% assessments;3% other business licenses, permits, certifications, inspections; 4% business registrations; 2% miscellaneous)
The following pie chart shows the expenditures for Fiscal Year 2009-2010.
(78% examine and monitor institutions; 12% communication; 7% chartering, licensing, and applications; 3% enforcement)
Division regulated depository institutions grew $2.7 billion during 2008. The growth continues a ten-year trend, during which time aggregate assets of state chartered commercial and industrial banks, and trust companies increased from $18.4 billion to $39.5 billion, or 115 percent. In addition, total deposits for the group increased to $32.2 billion as of year-end. Although three new commercial banks were chartered and three national banks converted to state charter, mergers and consolidations reduced the total number of state chartered depository institutions from 118 to 116 as of December 31, 2008.
While asset growth remained strong, the Colorado banking industry did not escape the ripple effect of the deteriorating real estate market, high foreclosure rates, and economic slowdown. Bank earnings were adversely affected by narrow net interest margins, increased loan loss provisions, and losses on sale of other real estate owned and securities. Nevertheless, regulated depository institutions remain strongly capitalized and as a whole are positioned to withstand the economic downturn.
Total fiduciary assets held by Colorado trust companies decreased by $52.5 billion during 2008 to $44.3 billion. The dramatic decrease was largely attributable to an out-of-state trust company acquiring a depository trust company that held a large trust portfolio. Overall, the industry remained profitable posting net income of $59,854,000 for 2008.
Working to Preserve Public Trust in Colorado Banking |
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