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The New York State Department of Financial Services
USINFO | 2013-11-13 10:29
The New York State Department of Financial Services was created by transferring the functions of the New York State Banking Department and the New York State Insurance Department into a new department. This transfer of functions became official on October 3, 2011.
In 1791, the New York State legislature authorized a charter for the first state bank, the Bank of New York.
A law in 1829 set up a Bank Fund later renamed the Safety Fund, to guarantee the payment of debts of insolvent state banks. All State-chartered banks were required to make an annual contribution to this fund, which was managed by the State treasurer. That same law provided for the appointment of three bank commissioners to examine the financial status of these banks and to report annually to the legislature. The Banking Law of 1838 required banks file certificates of incorporation with the Secretary of State and to report annually to the State Comptroller. In 1843, the Comptroller was authorized to examine a bank only when there was reason to suspect an incorrect report had been submitted or was in an unsafe and unsound condition to continue business.
The Banking Department was created by the New York state legislature on April 15, 1851. Until it was abolished in 2011, the New York State Banking Department was the oldest bank regulatory agency in the nation.
