This bill amends existing banking laws to increase the lending limits for depository banks and to streamline the chartering process for new banks. Specifically, it raises the maximum amount a bank can loan to a single borrower by allowing loans up to 20% of the bank's capital and surplus, or 25% if the excess amount is fully secured by U.S. obligations. Additionally, the bill shortens the de novo status period for new banks from five years to three years, which is intended to facilitate quicker establishment and operation of new banking institutions.

Furthermore, the bill includes provisions that allow the commissioner to extend or reduce the timeframes for capital and business plans in accordance with federal requirements, and it mandates that any material changes to a bank's business plan within three years of receiving its charter must be approved by the commissioner. The bill also updates the definition of "capital and surplus" to align with federal regulations. Overall, these changes aim to enhance the operational flexibility of banks while ensuring their safety and soundness.

Statutes affected:
Introduced: 383-A:3-305, 383-A:3-318, 383-B:3-303
As Amended by the Senate: 383-B:3-303, 383-B:2-201, 383-A:3-305, 383-A:3-318
Version adopted by both bodies: 383-B:3-303, 383-B:2-201, 383-A:3-305, 383-A:3-318
CHAPTERED FINAL VERSION: 383-B:3-303, 383-B:2-201, 383-A:3-305, 383-A:3-318