When Governor Davis signed Senate Bill 2148 (Polanco) into law in the fall of 2000, it transformed deposit taking industrial loan companies into a new class of financial institutions called industrial banks. Industrial banks differ from commercial banks in that they cannot accept demand deposits and their parent companies are exempt from the Bank Holding Company Act for this reason. Since the passage of Senate Bill 2148, industrial banks are subject to the same laws, regulations, and examinations as commercial banks.
How to reach us:
Department of Financial Protection and Innovation
Division of Corporations and Financial Institutions
One Sansome Street, Suite 600
San Francisco, CA 94104-4428
Phone: (415) 263-8500
Fax: (415) 288-8830
E-mail:licensing@dfpi.ca.gov
FAQs
The Department of Financial Protection and Innovation (DFPI) provides protection to consumers and services to businesses engaged in financial transactions. The Department regulates a variety of financial services, products and professionals.
What is the main function of the industrial banks? ›
Because of its role as an investment bank, its main function is to provide facilities for people to invest in debentures and shares. International Agencies and Development Banks provide short and medium term loans and grants to promote the development of economically backward areas in the world.
Who regulates industrial banks? ›
Industrial Banks | The Department of Financial Protection and Innovation.
What is the difference between industrial banks and commercial banks? ›
Industrial banks differ from commercial banks because some do not offer demand deposit (checking) accounts. Industrial banks are FDIC-supervised financial institutions and are currently chartered in seven states (California, Colorado, Hawaii, Indiana, Minnesota, Nevada and Utah).
What is the purpose of the innovation department? ›
To start, innovation departments can help bring new initiatives to life by encouraging 'fiddling around' with new ideas. This can be done by creating the right circ*mstances, an environment conducive to innovation where public servants are encouraged and equipped with the tools to innovate.
What does the CFPB have the authority to do? ›
The CFPB has regulatory authority over providers of many types of financial products and services, including credit cards, banking accounts, loan servicing, credit reporting and consumer debt collection. A person shops in the beef section of a supermarket on February 13, 2023 in Los Angeles, California.
What is an example of an industrial bank? ›
They can be owned by nonfinancial companies – Commercial businesses can own industrial banks, examples include BMW Bank of North America and Pitney Bowes Bank. Goldman Sachs and American Express also began as industrial banks.
What agency holds banks accountable? ›
The OCC charters, regulates, and supervises all national banks and federal savings associations as well as federal branches and agencies of foreign banks. The OCC is an independent bureau of the U.S. Department of the Treasury.
What entity oversees banks? ›
Federal Reserve Board - The Federal Reserve Board supervises state-chartered banks that are members of the Federal Reserve System. Visit the Consumer Information page for assistance.
Can industrial banks take deposits? ›
An industrial bank is a state-chartered, financial institution, usually owned by a commercial firm, that is not regulated by a federal banking agency. Industrial banks accept customer deposits and provide loans for consumers and small businesses.
Commercial banks primarily serve businesses, corporations, and large institutions. They offer a range of financial services tailored to the needs of businesses, including business loans, lines of credit, cash management, and treasury services.
Does commercial banking pay well? ›
While ZipRecruiter is seeing salaries as high as $213,172 and as low as $61,682, the majority of Commercial Banker salaries currently range between $108,600 (25th percentile) to $176,700 (75th percentile) with top earners (90th percentile) making $204,782 annually in California.
What is the purpose of financial innovation? ›
Financial innovation promotes the usage of financial products and services by making them simpler, more accessible, more affordable, and more timely. Payment by UPI, for example, is far more advantageous than payment via debit or credit card. You can also buy and pay for anything using your cell phone.
What is one role of the CFPB? ›
We protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law. We arm people with the information, steps, and tools that they need to make smart financial decisions.
What does CFPB enforce? ›
The CFPB enforces a number of consumer financial protection laws and a variety of rules, orders, standards and prohibitions prescribed by the CFPB and certain rules issued by the Federal Trade Commission. Some of the laws the CFPB enforces include: Alternative Mortgage Transaction Parity Act of 1982 (12 U.S.C.
What do IFIs do? ›
International Financial Institutions (IFIs), also known as Multilateral Development Banks (MDBs), offer grants, guarantees, credits and low-cost loans to Borrowing Member Countries (BMCs) to achieve development goals.
