Skip to content
A2507Assembly2017-2018 Session

Let State Banks Invest Freely

Official title

“Authorizes state chartered banking institutions to invest their assets to the extent authorized in the rules and regulations of the Federal Deposit Insurance Corporation”

Sponsor Anthony BrindisiAD-119Affects Finance
Status
In Assembly Committee
Banks
Impact
3/10
Low
Passage
0%

Bill progress

Step 2 of 7

In committee · Banks

What's happening

This bill allows New York state-chartered banks to invest their tier 1 capital according to FDIC regulations.

Why it matters

  1. Aligns New York’s banking rules with federal standards. , potentially making it easier for state-chartered banks to compete with national banks and simplifying regulatory compliance.

  2. Could allow state-chartered banks to pursue a broader range of investments with their core capital. , which may improve their profitability or risk management options, depending on how FDIC rules differ from stricter state limits.

  3. May encourage more banks to seek or retain state charters. if New York is seen as less restrictive, possibly affecting the state’s financial services landscape and regulatory authority.

The daily · weekday mornings

Albany, before your first meeting.

Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.

Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.

Who cares

  • New York state-chartered banking institutions

    The bill would authorize them to invest their tier 1 capital to the extent permitted by FDIC rules, notwithstanding contrary provisions of state banking law.

  • Bank capital managers

    The investment authority would cover common stock, disclosed reserves and non-redeemable non-cumulative preferred stock, which the bill defines as tier 1 capital.

  • State banking regulators

    They would need to apply the new investment authority using FDIC rules as the limit rather than contrary provisions of state banking law.

Headline styles

Let State Banks Invest Freely

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Anthony Brindisi

Assembly Member · Assembly District 119

No co-sponsors yet.

History

  1. Referred to banks
  2. Referred to banks

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

2507

2017-2018 Regular Sessions

IN ASSEMBLY

January 20, 2017

Introduced by M. of A. BRINDISI -- read once and referred to the Committee on Banks

AN ACT to amend the banking law, in relation to the investment of the tier 1 capital of state chartered banking institutions

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. The banking law is amended by adding a new section 12 to read as follows:

§ 12. Power of state chartered banking institution to invest its tier 1 capital. 1. For the purposes of this section, "tier 1 capital" shall mean the common stock, disclosed reserves and non-redeemable non-cumulative preferred stock of a state chartered banking institution.

2. Notwithstanding any provision of this chapter to the contrary, each state chartered banking institution shall be authorized to invest its tier 1 capital to the extent permitted by the rules and regulations of the Federal Deposit Insurance Corporation.

§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD01881-01-7

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.