Alabama State Banking Report
December 20, 2018
State Banking Board
On December 14, the Alabama REALTORS® Public Policy team attended the State Banking Board meeting to monitor for impacts on the real estate industry and homeowners. State banking regulations can affect homebuyers, investments, loans and home mortgages.
The Board members heard end-of-year reports from the State Banking Department management staff. It was reported that 2018 has been a good year for the banking industry, and the banking footprint has been expanded in the state because of strong capital. There are over 100 banks in Alabama, and performance is equal or better than it was before the 2008 Recession. It was stated that Georgia lost 74 banks as a result of the 2008 Recession while Alabama only lost four.
It was also reported that The Examination of Bank Service Providers Act, which was passed in the 2018 Alabama Legislative Session and signed into law as Act 2018-500, has provided much regulatory relief to Alabama banks, and banks have benefited greatly from this law. Act 2018-500 authorizes the Superintendent of Banks to examine third-party service providers that perform data processing, financial-related services and internet-related services. The third-party company is subject to supervision and inspection by the Superintendent, through appointed-examiners, if the Superintendent believes the examination is necessary to protect the safety and soundness of a bank or prevent a threat to the public.
Alabama State Banking Board Background
Established in 1911, the State Banking Department is the state agency that charters, regulates and examines banks and trust companies chartered by the State of Alabama. The Department also has regulatory and licensing authority over lenders, mortgage brokers, payday lenders and pawnshops conducting business in Alabama.
The AAR Public Policy team will continue to monitor state regulatory agencies for potential impacts on REALTOR® members, the real estate industry and private property owners.