| Notice Filed with SOS |
08/30/2024 |
| Rule |
ProposedRuleAttach2024-00420.docx
|
| Additional Information |
AddInfoAttach2024-00420.pdf
|
| Statutory Authority |
11-101-102. Declaration of policy.
11-102-104. Powers and duties of the banking board.
11-109-103. Applicability of powers of banking board and bank commissioner to trust companies.
11-109-304. Capital |
| Description of Subjects/Issues |
The purpose of this rulemaking is to amend Rule 3 CCR 701-6 TC13.
The Colorado Division of Banking (Division) finds that the proposed amendments to this rule are necessary as follows:
● Due to the proposed repeal of Rule 3 CCR 701-6 TC14, the purpose of the rule should be revised to reflect that both leverage and risk-based capital ratios are addressed in the rule as well as capital adequacy standards.
● The initial capital required to charter a depository trust company should be increased from $1,000,000 to $1,500,000 and the minimum should not be less than $1,000,000, an increase from $750,000. This proposed increase is in alignment with the proposed increase in 3 CCR 701-6 TC13.5.
● Revise definitions and minimum capital ratios to include the capital adequacy standards and the calculation of said capital ratios through the incorporation by reference the following applicable code of federal regulations:
o Code of Federal Regulations Title 12 - Banks and Banking Chapter III - Federal Deposit Insurance Corporation Subchapter B - Regulations and Statements of General Policy Part 324 Capital Adequacy of FDIC-Supervised Institutions, which includes Subpart H Prompt Corrective Action.
The incorporated material is available at https://banking.colorado.gov/banking-home/rules-statutes. |
| Purpose/Objective of Rule |
The purpose of this rule is to establish minimum capital requirements for depository trust companies. |
| Basis And Purpose |
BasisAndPurposeAttachment2024-00420.pdf
|
| Comments |
The Colorado Division of Banking (Division) finds that the proposed amendments to this rule are necessary as follows:
● Due to the proposed repeal of Rule 3 CCR 701-6 TC14, the purpose of the rule should be revised to reflect that both leverage and risk-based capital ratios are addressed in the rule as well as capital adequacy standards.
● The initial capital required to charter a depository trust company should be increased from $1,000,000 to $1,500,000 and the minimum should not be less than $1,000,000, an increase from $750,000. This proposed increase is in alignment with the proposed increase in 3 CCR 701-6 TC13.5.
● Revise definitions and minimum capital ratios to include the capital adequacy standards and the calculation of said capital ratios through the incorporation by reference the following applicable code of federal regulations:
o Code of Federal Regulations Title 12 - Banks and Banking Chapter III - Federal Deposit Insurance Corporation Subchapter B |
| Submitted in response to issues raised by COLS/OLLS? |
No
|
| Is this rule adopted in response to recent legislation? |
No
|
| Hearing Date |
10/17/2024 |
| Hearing Time |
10:00 AM |
| Hearing Location |
1560 Broadway, Suite 100D, Denver, Colorado |
| Contact Name |
Charles Siler |
| Contact Title |
Banking Board Administrator |
| Contact Telephone |
3038947584 |
| Contact email |
charles.siler@state.co.us |