Wyoming Administrative Code › Agency 021 - Audit, Dept. of › Sub-Agency 0002 - Banking Division › Chapter 20 - SPECIAL PURPOSE DEPOSITORY INSTITUTIONS › Section 20-2 - Capital and Surplus/Operating Expenses

Current through July 13, 2024
(a) Consistent with
				W.S.
				13-12-110(b) and subsection
				(d) of this section, a special purpose depository institution shall have
				initial capital, subscribed for as fully paid stock, which is commensurate with
				the risk profile and proposed activities of the institution, as determined by
				the Commissioner. A special purpose depository institution shall also maintain
				a capital plan analyzing capital needs based on initial requirements, projected
				growth and the availability of capital from identified sources. The plan may
				include a moratorium on the payment of dividends during a specified future
				period. The initial capital required by this subsection shall be subscribed and
				fully paid in at the time the institution applies for a certificate of
				authority under W.S. 13-12116, but prior to this time, as part of the charter
				application of the institution, the incorporators shall present evidence that
				the required capital will be available if a charter is granted, which may
				include letters of commitment, as required by the Commissioner.
(b) After a special purpose depository
				institution has commenced operations, the Commissioner may require the
				institution to modify its capital levels based on the size, risk profile or
				activities of the institution. To the extent possible, the Commissioner will
				give the institution a sufficient period to implement a modified capital
				requirement. The Commissioner retains the authority to require a modification
				of capital within sixty (60) days, consistent with W.S. 13-4203, if conditions
				warrant.
(c) A special purpose
				depository institution shall have a paid-up surplus fund of not less than three
				(3) years of operating expenses prior to applying for a certificate of
				authority under W.S.
				W.S.
				13-12-116.
(d) In establishing a capital requirement
				under this section, the Commissioner shall consider the following factors
				holistically, accounting for the non-leveraged nature of the institution and
				the impact of operational risk and impact on earnings:
(i) Peer institutions of the special purpose
				depository institution, which may include custodial banks and national trust
				banks;
(ii) The activities and
				risks posed by the business plan and financial projections of the special
				purpose depository institution;
(iii) The prompt corrective action tier 1
				leverage ratio;
(iv) The
				non-leveraged nature of deposits related to custodial, fiduciary and trust
				accounts administered by the institution, consistent with
				12 C.F.R. §
											217.10 as of October 1, 2020, and the
				treatment of custodial, fiduciary and trust deposits under the supplementary
				leverage ratio for custodial banks;
(v) Current market conditions, including
				capital requirements of recently-chartered de novo banks; and
(vi) Potential costs of a receivership, as
				specified by § 5 of this Chapter.