Compendium of Budget Information for the 2010 General Session
|Commerce & Workforce Services
|Subcommittee Table of Contents
The Department of Financial Institutions regulates state-chartered deposit taking institutions including banks, savings and loan associations, credit unions, and industrial loan banks. It also regulates third-party payment providers, independent escrow companies, check cashers, payday lenders, title lenders, mortgage loan servicers and consumer credit lenders operating in Utah.
The Department of Financial Institutions promotes the availability of sound financial services through chartering, regulating, and supervising. The Department is open to establishing new and enhancing existing financial products.
Financial Institutions regulates 109 institutions including, 31 commercial banks, 52 credit unions, 24 industrial banks, and 2 trust companies. It also regulates 37 travelers check or money order issuers, 2 independent escrow companies, 219 check cashers/payday lenders, 64 title lenders and 180 residential first mortgage loan servicers. The Department employs 50 people.
Two primary Department goals are 1) to complete the number of examinations required to maintain the health of the State-chartered banking and credit union systems in Utah and 2) to be accredited by it's financial institution peers in an interstate banking environment.
The Department's primary activity is the examination of depository institutions for safety, soundness, and compliance with all state and federal laws and rules. In the case of depository institutions, its statutory charge is to charter, regulate, supervise and safeguard the interest of shareholders, members, depositors, and borrowers, through on site examinations and remedial action orders.
For persons or entities that provide public financial services, the Department's statutory requirement is that consumer credit terms be lawful and easily understood.
The following statutory references govern Utah's financial institutions and can be found in the Utah Code Annotated in the following places:
Financial Institutions is funded primarily through assessments on financial institutions it regulates.