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Can you summarize 16 HIAR Chapter 26?
DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS > EXAMINATION AND OFF-SITE MONITORING OF HAWAII FINANCIAL INSTITUTIONS
Short Summary
This document governs the examination and off-site monitoring of Hawaii financial institutions by the Division of Financial Institutions under the Department of Commerce and Consumer Affairs. It sets forth the policies regarding examination priorities, frequency, scope, and procedures. The objective is to determine the financial condition, safety and soundness of operations, evaluate management, and ensure compliance with applicable laws and rules. The document also provides definitions for various terms used in the Hawaii Administrative Rules related to the examination and off-site monitoring of Hawaii financial institutions. It specifies the exemptions to the definition of ‘affiliate’ and identifies the member agencies of the FFIEC. The document further clarifies the scope of the term ‘Hawaii financial institution’ and provides definitions for ‘holding company’, ‘NCUA’, ‘off-site monitoring’, and ‘subsidiary’. Additionally, it addresses the coordination of examinations and visitations with federal authorities, aiming to maximize regulatory resources and minimize duplication of effort. The document also pertains to the adoption of the ‘Uniform Financial Institutions Rating System’ (UFIRS) and the Nondepository Rating System (NRS) for nondepository financial services loan companies in Hawaii. The UFIRS is a comprehensive and uniform rating system that evaluates an institution’s financial condition, compliance with laws and regulations, and overall operating soundness. The NRS evaluates factors such as compliance with consumer credit law and the adequacy of operating systems. Both rating systems assign composite ratings on a numerical scale to identify institutions that require special supervisory attention or have deficiencies. The composite ratings and individual component ratings are confidential and included in the examination reports. The document outlines the frequency of examinations for different types of institutions based on their UFIRS or NRS composite ratings. It also specifies the requirements for examinations and visitations for newly chartered or licensed institutions, institutions converting from a federal charter to a state charter, and institutions that undergo a change of control in ownership or management. The document provides a comprehensive framework for conducting examinations and ensuring compliance with relevant laws and regulations for different types of financial institutions in Hawaii.
Whom does it apply to?
Hawaii financial institutions, Division of Financial Institutions under the Department of Commerce and Consumer Affairs
What does it govern?
Examination and off-site monitoring of Hawaii financial institutions
What are exemptions?
No specific exemptions are mentioned in this document.
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
Hawaii