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Can you summarize WVCO Chapter 31A, Article 8C?
BANKS AND BANKING. > PROVISION OF FINANCIALLY-RELATED SERVICES BY BANKS AND BANK HOLDING COMPANIES.
Short Summary
This legal document governs the provision of financially-related services by banks and bank holding companies. It applies to national banks, federally chartered thrift institutions, West Virginia state or federally chartered credit unions, and banks chartered by any other state. The term ‘financially related’ includes various products, services, and activities offered by these entities, such as equity investments in real estate development, securities underwriting and brokerage, and financial consulting. The Commissioner of Banking has the authority to deem other activities, products, and services offered by providers of financial products or services as financially related. However, the term ‘financially related’ excludes products, services, or activities offered by real estate agents, agencies, or brokers regulated by the state Real Estate Commission, except for certain activities permitted for West Virginia state-chartered banking institutions prior to the effective date of this section or permitted under subdivision (b) of this section. West Virginia state-chartered banking institutions and bank holding companies headquartered in West Virginia are permitted to engage in financially related activities subject to the prior approval of the Commissioner of Financial Institutions. They can engage in financially related activities through equity investment in other entities, wholly owned subsidiaries, or by contract or agreement with others. The Commissioner considers the ability of financial institutions to exercise additional powers in a safe and sound manner, the authority of national or state banks and other financial service providers to provide the financially related service, and any specific limitations on financial institution operations or powers contained in this chapter. If a state-chartered banking institution or bank holding company needs approval from a federal bank regulatory agency for a financially related activity, they must file a copy of the application with the Commissioner. The Commissioner is also required to include a list of every financially related activity authorized in their annual report to the Legislature. 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. The commissioner of banking, pursuant to chapter twenty-nine-a of this code, shall promulgate rules governing the provision of financially-related products and services by West Virginia state-chartered banking institutions and by any bank holding company conducting business in this state. These rules shall include the procedures applicable in connection with application to engage in financially-related activities and offer financially-related products and services and the conduct of such activities. This article shall be construed liberally to permit banks and bank holding companies to offer financially related products and services and to enable West Virginia state-chartered banking institutions and bank holding companies to compete fairly with other financial institutions and other entities providing financial services under the laws of the United States or any other state. No other provision of this code shall be deemed to prohibit such activity: Provided, That in the provision of such products and services, banks and bank holding companies are subject to the same state and federal regulation and licensing requirements as are other providers of such products and services.
Whom does it apply to?
National banks, federally chartered thrift institutions, West Virginia state or federally chartered credit unions, and banks chartered by any other state
What does it govern?
Provision of financially-related services by banks and bank holding companies
What are exemptions?
Real estate agents, agencies, or brokers regulated by the state Real Estate Commission, except for certain activities permitted for West Virginia state-chartered banking institutions prior to the effective date of this section or permitted under subdivision (b) of this section
What are the Penalties?
No specific penalties mentioned
Jurisdiction
West Virginia