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|About the Division of Banking|
Title 17, Chapter 9A-260 of the New Jersey statutes specifies that whenever and as often as the director of Banking deems it advisable, each State-chartered bank shall "be examined to determine whether the bank is conducting its business in conformity with the laws of this State...and with safety to its depositors, other creditors and the public."
Similar requirements of State-chartered savings and loan associations appear at N.J.S.A. 17:12B-172. Other sections of title 17 and title 45 empower the Division to examine mortgage bankers, mortgage brokers, insurance premium finance companies, consumer loan companies, secondary mortgage companies, credit unions and pawnbrokers.
The Division consists of two offices. The Office of Depositories conducts examinations of State-chartered banking and savings and loan institutions, as well as taking enforcement actions against any where violations of banking law or regulations occur. Corresponding responsibilities have been assigned to the Office of Consumer Finance for the other types of lenders listed above, including credit unions. (For licensee requirements and information, see Licensing Services, Banking)
The Office of Depositories, in addition, processes and reviews applications by depository institutions for new charters, branches, relocations, plans of acquisition, mergers, bulk sales, stock conversions and auxiliary offices, while the Office of Consumer Finance investigates complaints filed by consumers against institutions which the Division regulates.
These two offices, in cooperation with the Offices of the Commissioner, also serve as a source of new legislation and administrative regulations enacted from time to time in response to emerging needs of the consumer public or financial industry.
National banks are examined by the U.S. Office of the Comptroller of the Currency (OCC), with membership in the Federal Reserve system a requirement for national banks and optional for State-chartered banks. (Please note: on July 21, 2011, the Office of Thrift Supervision (OTS) became part of the Office of the Comptroller of the Currency (OCC).)
Federally chartered savings and loan associations are also regulated by the U.S. Office of the Comptroller of the Currency (OCC) and federal credit unions by the National Credit Union Administration.
In the case of State-chartered commercial banks which are members of the Federal Reserve system, the Division conducts examinations on an alternating yearly basis with the Federal Reserve.
State-chartered commercial banks are examined alternately by the Division and the Federal Deposit Insurance Corporation (FDIC).
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State of New Jersey
New Jersey Department of Banking and Insurance