The financial services industry is one of our State's largest employers. State-chartered banks must also observe our consumer protection laws, which are some of the strongest and most innovative in the nation.
Banks are free to choose whether they wish to operate under a State or a federal charter.
Conversely, federally-chartered banks may conduct business in the New York without having their main offices here. As a result of rapid changes in the financial services industry, it has become increasingly difficult for the State Legislature to respond by seeking amendments to the State's Banking Law on a piecemeal basis each time national bank powers expanded. In conducting such insurance activities, State thrift institutions would be subject to the same rules as now apply to State and federally chartered commercial banks, respecting certain disclosures made to consumers to the effect that the insurance product being sold is not a deposit, is not FDIC-insured, and is not guaranteed by the selling bank or its affiliate. The New York State Banking Department is the regulator for all State-chartered banking institutions.