| Notice Filed with SOS |
08/30/2024 |
| Rule |
ProposedRuleAttach2024-00421.docx
|
| Additional Information |
AddInfoAttach2024-00421.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 rule is to establish minimum capital requirements for non-depository trust companies (NDTC). The purpose of this rulemaking is to amend Rule 3 CCR 701-6 TC13.5.
The Division finds that the proposed amendments to this rule are necessary as follows:
The initial capital required to charter a NDTC should be increased from $1,000,000 to $1,500,000. Minimum total capital requirement should be increased from $750,000 to $1,000,000. The increases are necessary to align with current trust business costs, align the minimum level from 1997 to equivalent levels in 2024, and the increase in complexity of NDTC operations. Proposes a 36 month phase-in period for existing trust companies to comply with the proposed minimum total capital requirement.
Gives the State Bank Commissioner discretion to restrict a NDTC's capital distributions, engagement in certain activities, and payment of excessive compensation and bonus, which could further deplete capital.
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 applicable Code of Federal Regulations Title 12 - Banks and Banking Chapter III.
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 non-depository trust companies. |
| Basis And Purpose |
BasisAndPurposeAttachment2024-00421.pdf
|
| Comments |
The Division finds that the proposed amendments are necessary:
The initial capital required to charter a trust company should be increased from $1Mil to $1.5Mil. Minimum total capital requirement should be increased from $.75Mil to $1Mil. Increases are necessary to adjust the minimum level from the 1997 level to equivalent 2024 dollar levels. The amendment proposes a 36 month phase-in period for existing trust companies to comply with the proposed minimum total capital requirement.
Give the State Bank Commissioner discretion to restrict a trust company’s capital distributions, certain activities, & payment of excessive compensation & bonus.
Revise definitions & minimum capital ratios to include the capital adequacy standards & the calculation of said capital ratios through the incorporation by reference the following applicable code of federal regulations:
Code of Federal Regulations Title 12 - Banks and Banking Chapter III - FDIC 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 |