Florida Administrative Code › 69 - DEPARTMENT OF FINANCIAL SERVICES › 69U - FSC - Financial Institution Regulation › Chapter 69U-105 - LICENSING AND CHARTERING OF FINANCIAL INSTITUTIONS › Section 69U-105.206 - Regulatory Standards for Evaluating Applications

Current through Reg. 50, No. 138; July 16, 2024
(1) When an application for authority to
				organize and operate a new state financial institution is filed, it is the
				applicant's responsibility to prove that the statutory criteria warranting the
				grant of authority are met. OFR shall conduct an investigation pursuant to
				Section 658.20, F.S. If, in the opinion
				of OFR, any one of the criteria as set forth in Section
				658.21, F.S., has not been met
				and cannot be remedied by the applicant, OFR cannot approve the application. In
				addition to the statutory and regulatory criteria which relate specifically to
				the criteria for approval of an application to establish a state financial
				institution, OFR must also be guided by the broader purposes of the financial
				institutions codes, including the maintenance of public confidence in financial
				institutions and the protection of the interests of the public in the safety
				and soundness and the preservation of the financial institution system in this
				state. (Sections 655.001(2)(c) and
				(d), F.S.) The statutory criteria for
				approval of a state financial institution are set forth in six separate
				subsections of the statute. However, it is the opinion of OFR that each
				individual criterion forms but one aspect of the review of the application in
				its entirety. Any reasonable and realistic decision on an application must take
				all of these factors into account in relation to each other in addition to
				reviewing them as distinct elements of the framework for decision on the
				application.
(2) Standards. In
				making its determination OFR shall consider the following statutory criteria:
(a) Conditions indicate a reasonable promise
				of a successful operation.
1. Essential to the
				concept of banking opportunity is that there does and will exist a significant
				volume of business for which the state financial institution can realistically
				compete. The public interest is best served by a financial institution system
				in which new competition is encouraged, where appropriate, yet at the same time
				ensuring that the financial resources of the residents in the community are
				stable and safe.
2. The business
				plan submitted by the applicant establishes the purpose, objectives, and
				business philosophy of the state financial institution, and is considered by
				OFR to be a representation of plans and expectations genuinely believed by the
				applicant to be attainable. OFR will review the viability of the plan in light
				of current conditions within the primary service area, the metropolitan
				statistical area or county, or target market, and in the financial institution
				industry in general, as well as the ability of the proposed board and
				management of the state financial institution to implement the business plan as
				outlined. It is the responsibility of the Board of Directors to conceive,
				develop, review, and approve the business plan. The submission of the plan to
				OFR constitutes a representation that the members of the board are familiar
				with the plan and understand its provisions. Any finding to the contrary may be
				grounds for a conclusion by OFR that the board lacks the business experience
				and ability necessary to indicate a reasonable promise of a successful
				operation.
3. When the existing
				level of competition is great, the reasonable promise of success of the
				proposed new state financial institution is diminished unless other factors,
				such as a particularly strong organizing group with a demonstrably broad base
				of support within the community or target market can serve to overcome the
				difficulties which stem from a highly competitive environment.
4. Where the proposed board of directors has
				not made a significant personal investment in the stock of the state financial
				institution, the offering of the stock to the target market or residents of the
				community have met with a diminished response and, in several cases, the
				efforts to organize the state financial institution have been abandoned as a
				result. The proposed board of directors, in the aggregate, must subscribe to at
				least twenty-five percent (25%) of the initial shares of stock for OFR to
				determine that the state financial institution will have a reasonable promise
				of a successful operation.