State banks remain in good shape; regulator's budget detailed

Northwestern Financial Review, Sep 4, 1999

State-chartered banks in Minnesota are in good condition, Deputy Commerce Commissioner Kevin Murphy reported at the annual convention of the Independent Community Bankers of Minnesota in Breezy Point, Minn., on Aug. 6.

Murphy said that of 370 state-- chartered banks, nine banks have a 3 CAMELS rating, while no banks have a rating of 4 or 5.

Murphy explained that his department has a budget of $4.4 million. Of that, $1.9 million comes from examination fees, billed at $42.50 per hour. The department raises another $150,000 in fees and the remaining $2.3 million is paid for through assessments to the various regulated industries. This year, banks pay $1.6 million of that remainder. This is down from $1.7 million banks were assessed last year, Murphy said.

Murphy noted a number of changes in the department. He said the bank application process has been shortened, that the state now allows reverse stock splits, that banks can now set up part-time offices at senior citizens' homes, and that the lending limit for stored grains has been increased. Murphy also noted the application fee to charter a bank was raised to $8,000 from $1,500 where it had been for 30 years. "It is still a bargain compared to the $17,400 it costs to file an application for a national bank," Murphy noted.