Alabama Clarifies Supervision Authority Over Bank Affiliates, Service Providers

Bank Supervision

On May 23, Alabama enacted a bill that clarifies the Alabama Banking Department’s authority to examine subsidiaries and affiliates of state banks and bank holding companies when the Banking Superintendent believes such a company is not operating in compliance with state laws or safe and sound banking practices. The bill, HB 529, also grants the Banking Department authority to examine bank service companies on the same as-needed basis. Finally, the bill clarifies the Superintendent’s right to promulgate regulations and adds bank holding companies in as an entity that may rely on interpretations of banking laws and regulations. The bill took effect immediately.