DIVISIONS
Banking Code and Regulations/ Administration
The Office of the State Bank Commissioner has for many years taken a leading role in
developing proposed legislation to enhance and modernize Delaware's Banking Code.
Regulations are also issued by the State Bank Commissioner in accordance with the Banking
Code. The Office provides guidance about the interpretation and administration of the
State Banking Code and Regulations.
Bank Franchise Tax Administration
The State Bank Commissioner is responsible for administering and collecting the bank
franchise tax, which is an income-based tax levied on all banking organizations and trust
companies in Delaware. Bank franchise taxpayers are exempt from the State corporation
income tax, and the bank franchise tax is in lieu of occupational taxes or taxes upon
income, capital and assets, other than real estate.
Bank and Trust Company Applications/ Examinations
Applications to form new state-chartered banks and trust companies, as well as to
approve mergers and acquisitions and other banking services, are handled by the Office of
the State Bank Commissioner. New applications are encouraged in order to provide expanded
banking and trust services in Delaware, as well as to increase employment and promote the
development of the banking industry in the State.
Examining financial institutions is a major focus of the activities of the Office of
the State Bank Commissioner. Banks and trust companies are examined to ensure their safe
and sound operation, and that trust services are provided in accordance with appropriate
standards. In addition, banks, trust companies and non-depository licensees are examined
to ensure compliance with state and federal banking laws and consumer protection statutes
and regulations. The examination process improves the availability of financial services
to all Delawareans and provides for economic stabilization and revitalization of
communities. State and federally chartered banking organizations, including federal credit
unions, are also examined to make sure that abandoned property is properly escheated to
the State.
Licensing Non-Depository Institutions
The Office of the State Bank Commissioner licenses and regulates hundreds of non-bank businesses that provide financial services in Delaware. Mortgage Loan Brokers are licensed to arrange residential mortgage loans for consumers. Businesses engaged in consumer lending, such as mortgage lenders or consumer finance companies, are licensed as Licensed Lenders. Mortgage Loan Originators are required to have individual licenses. Companies that sell travelers checks or receive funds for transmission are licensed for the Sale of Checks and Transmission of Money. Licenses for Cashing Checks, Drafts or Money Orders are issued to businesses who cash such items for consumers for a fee in excess of ten cents per item. Businesses engaged in Financing the Sale of Motor Vehicles are licensed to lend money to consumers through retail installment contracts for the purpose of purchasing a motor vehicle. Licenses are required for businesses engaged in the Transportation of Money and Valuables for hire. Businesses that create contracts for funeral goods and services for consumers wanting to make advance arrangements, receiving the payments of money as trust funds until the services are needed, are licensed to engage in Preneed Funeral Contracts.
The Non-Depository Institutions and Compliance staff of the Office of the State Bank
Commissioner processes and investigates all applications for new non-depository licenses
as well as all renewal applications. Investigations emphasize the financial stability of
an applicant as well as the knowledge and experience of its principals. We inform
licensees about statutory and regulatory changes to enable them to operate in compliance
with applicable laws. To ensure that all Delaware consumers have the protection of
Delaware's statutes and regulations, we investigate reports of unlicensed business
activity and initiate regulatory enforcement actions when appropriate. An updated list of
each of these types of licensees is available on this web site, www.state.de.us/bank.
Consumer Questions and Complaints
The Non-Depository Institutions and Compliance staff of the Office of the State Bank
Commissioner responds to consumers who have questions or complaints about Delaware
financial institutions. Our goal is the fair resolution of consumer problems. We handle
many different types of inquiries from consumers through the telephone and through the
mail. Some concern the terms of credit card agreements or transactional disputes consumers
may have with their credit card issuer. Others involve the methods used by financial
institutions to collect debts from delinquent borrowers. A call may be about a car being
repossessed and a letter could relate that a consumer was overcharged by a mortgage loan
broker. Problems concerning loans, checking accounts, savings accounts, residential
mortgages, time deposits and anything else that involves a consumer and a Delaware bank or
non-depository financial institution are all handled by the Non-Depository Institutions
and Compliance staff.
Consumer Education Programs
The Office of the State Bank Commissioner actively promotes financial education for
consumers, including increase awareness about problems with predatory home mortgage
lending. In particular, the Office of the State Bank Commissioner and City of Wilmington
officials have worked with Freddie Mac (the Federal Home Loan Mortgage Corporation) on a
public education campaign called "Don’t Borrow Trouble." The campaign
uses materials such as brochures, mailings, posters and public service announcements
(PSAs) to inform the public that a reliable source of information is available about home
mortgage lending issues. A typical message in the advertising campaign combines a warning
about a prevalent scam with instructions to call the local contact number. The Office of
the State Bank Commissioner is coordinating outreach efforts with other State agencies,
including the Department of Justice, the Office of Human Relations and the Delaware State
Housing Authority.
Council on Banking
The Council on Banking is an advisory council of seven persons, each of whom is appointed by the Governor for a term of three years. The membership of the Council is politically balanced, as required by statute. The Council meets periodically during each year to consider matters relating to the administration of the banking laws and the strengthening and improving of banking in the State. The Council may study, research, plan and advise on matters it deems appropriate to enable the Office of the State Bank Commissioner to function in the best possible manner. The State Banking Code specifically provides for the Council to consider the rates for examination fees and supervisory assessments that fund the operations of the Office of the State Bank Commissioner.
