WEST VIRGINIA FINANCIALLY RELATED SERVICES
Any West Virginia state chartered bank or bank holding company may engage in financially related activities subject to the prior approval of the Commissioner of Banking. Any institution wishing to engage in a financially-related activity should submit a letter to the Commissioner that addresses at a minimum the nature of the activity, the authority in Federal or state law for other institutions to engage in the activity, and the proposed investment in the activity. The Commissioner shall grant or deny any written request within sixty days of receipt unless additional information is required.
In determining whether an activity is financially related, the Commissioner shall consider:
- The ability of financial institutions to exercise any additional powers in a safe and sound manner;
- The authority of national banks, federal thrifts, federal credit unions and other financial service providers operating pursuant to federal law or regulation and the laws of other states to provide the financially related service; and
- Any specific limitations on financial institution operations or powers contained in chapter 31A.
If a state-chartered banking institution or bank holding company must make prior application to a federal bank regulatory agency for approval to engage in a financially related activity, the banking institution or bank holding company shall file with the Commissioner a copy of the application submitted to the federal agency.
Financially-related Services Include:
- All products, services and activities offered or engaged in by national banks or by any federally chartered thrift institution, West Virginia state or federally chartered credit union or bank chartered by any other state;
- Equity investments in real estate development activities, products and services;
- Securities underwriting and brokerage activities, products and services;
- Financial consulting activities, products and services;
- Any and all other activities, products and services engaged in or offered by other providers of financial products or services which may be deemed by the Commissioner of Banking to be financially-related.
Financially-related Services Do Not Include:
- Products, services or activities offered or engaged in by any real estate agent, agency or broker, which products, services or activities are regulated by the West Virginia Real Estate Commission except for such activities, products and services permitted, engaged in or offered by a West Virginia state chartered banking institution prior to March 12, 1988.
No West Virginia state-chartered banking institution or bank holding company may invest or otherwise expend more in the aggregate of the amount of its capital and surplus, on a consolidated basis, in the conduct of financially-related activities than would be allowed to a national bank.
Questions may be directed to:
West Virginia Division of Financial Institutions
900 Pennsylvania Avenue
Charleston, West Virginia 25302
By email to Sally Cline
or Dawn Holstein