Brief ⁽¹⁾

SB 142, as amended, concerns the special order or so called "wild card" power of the State Bank Commissioner to authorize state-chartered banks to engage in activities they would be able to engage in if they were chartered as national banks.

The bill expands the Commissioner's power to allow state-chartered banks and state-chartered savings and loan associations, to engage in those activities allowed not just to federally chartered banks and savings and loan associations, but to those activities allowed to other insured depository institutions. "Insured depository institution" is defined as a bank, a savings and loan association, or a savings bank organized under the laws of the United States, this state, or any other state, whose deposits are insured by the United States government.

The Senate Committee amendments include state-chartered savings and loan associations in the expanded special order authority, and delete credit unions from the definition of an insured depository institution.

Background

SB 142 was requested by the Bank Commissioner who explained that, while national banks previously were the primary competitors of state banks, financial modernization has brought numerous changes to the delivery of financial services. Banks in other jurisdictions, securities firms, and insurance companies now are new competitors. The bill will help keep the state bank charter a viable option by allowing competitive equality with all types of depository institutions.

The bill is supported by the Kansas Bankers Association and the Heartland Community Bankers Association.

The fiscal note prepared by the Division of the Budget indicates passage of the bill will have no fiscal effect.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi