Ohio Administrative Code Title 1301:1 - Division of Financial Institutions: Banks
Ohio Administrative Code – Title 1301:1: Division of Financial Institutions: Banks
Overview:
Title 1301:1 of the Ohio Administrative Code outlines the regulations enforced by the Ohio Division of Financial Institutions (DFI) concerning banks and banking operations within the state. The DFI operates under the Ohio Department of Commerce, and this title focuses specifically on the supervision, licensing, examination, and regulation of banks chartered in Ohio.
These rules support the implementation of Ohio Revised Code Chapters 1101–1117, which govern state-chartered banks and trust companies.
Key Chapters & Provisions:
🔹 1301:1-1 – Definitions and General Provisions
Defines key terms like “bank,” “fiduciary,” “affiliate,” and “capital stock.”
Lays the groundwork for applying other banking rules and regulations.
🔹 1301:1-2 – Applications and Approvals
Procedures for applying to:
Establish a new bank or branch
Merge or acquire another financial institution
Convert from federal to state charter or vice versa
Public notice and hearing requirements for certain applications.
🔹 1301:1-3 – Corporate Governance and Operations
Rules for:
Bank directors and officers
Recordkeeping and audit requirements
Shareholder meetings and amendments to articles of incorporation
🔹 1301:1-4 – Capital and Reserve Requirements
Establishes minimum capital ratios
Rules for dividends, surplus funds, and reserve levels
Regulatory responses to undercapitalized banks
🔹 1301:1-5 – Safety and Soundness Standards
Internal controls, risk management, and compliance programs
Lending limits and asset quality standards
Examination procedures by DFI examiners
🔹 1301:1-6 – Fiduciary Activities
Rules for banks acting as trustees, executors, or custodians
Safekeeping of fiduciary assets
Recordkeeping and audits for trust departments
🔹 1301:1-7 – Enforcement and Corrective Action
Remedial actions for unsafe practices or regulatory violations
Consent orders, cease-and-desist orders, and civil penalties
Grounds for license suspension or revocation
✅ Purpose and Goals:
Ensure the financial stability and integrity of state-chartered banks
Protect the interests of depositors, consumers, and the public
Align state banking regulation with federal standards (e.g., FDIC, Federal Reserve)
🔍 Common Use Cases:
New bank formations or branching
Corporate reorganizations
Compliance with capital requirements
Fiduciary service regulation
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