Oklahoma Constitution Article XIV: BANKS AND BANKING
Oklahoma Constitution – Article XIV: Banks and Banking
Overview:
Article XIV of the Oklahoma Constitution governs the creation, regulation, and operation of banks and banking institutions within the state. Its primary purpose is to ensure a safe and constitutionally sound banking system that is regulated by law and overseen by state authorities.
🔹 Key Provisions of Article XIV:
Section 1: Creation of Banks
The Legislature shall provide by general law for the chartering and regulation of banks and banking institutions.
No special law shall be enacted to grant banking privileges to any individual or entity.
Section 2: State Banking Department
Establishes a State Banking Department to regulate and oversee banks.
Headed by the Bank Commissioner, appointed in the manner and for the term provided by law.
The department has supervisory authority over all state-chartered banks and financial institutions.
Section 3: Inspection and Reports
All banks are required to submit periodic reports and are subject to inspection by the State Banking Department.
This provision ensures transparency and accountability in bank operations.
Section 4: Limitation on Interests in Banks
No officer or employee of the banking department may have a direct interest in any bank under their supervision.
Intended to prevent conflicts of interest and promote unbiased regulation.
Section 5: Bank Liability and Reserve Requirements
The Legislature may establish laws requiring banks to maintain certain reserve requirements.
Also allows laws regulating banks’ liability to depositors and creditors.
Section 6: National Banks
National banks operating in Oklahoma are subject to state laws, provided those laws do not conflict with federal regulations.
✅ Summary:
Article XIV provides a constitutional foundation for a secure, regulated, and impartial banking system in Oklahoma. It empowers the Legislature to enact general laws for banking, ensures regulatory oversight through a State Banking Department, and imposes ethical standards to prevent conflicts of interest among regulators.
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