The Council of the District of Columbia voted June 21 to enact the “Bank Charter Modernization Amendment Act of 2007,” which will eliminate the statutory requirement for the Council to approve bank charters issued in the District. Commissioner Thomas E. Hampton of the DC Department of Insurance, Securities and Banking, which regulates financial industries in the District, including banks, released the following statement:

“The Department of Insurance, Securities, and Banking (DISB) is pleased that the Council voted for this legislation, which now puts the District of Columbia’s bank chartering process on equal footing with the rest of the nation. The previous process duplicated the regulatory actions of DISB, putting the District at a competitive disadvantage in comparison to other state and federal bank regulatory agencies. Shortening the review requirements for bank charters will reduce the expenses that bank applicants incur during the regulatory process and help preserve their limited capital. DISB believes that eliminating the Council’s approval will increase the interest of potential bank organizers to establish banks, thus making the District a more attractive jurisdiction for chartered banks. The enactment of this bill will continue to build the District as a premier financial services center with unparalleled opportunities for businesses and organizations.

“I would like to thank Councilmember Mary Cheh for taking such keen interest in this subject and for her support in sponsoring this legislation.”