Commonwealth Banks Required to File Annual Report with Governor and Legislature

The Director of the Department of Commerce and Labor is mandated to submit an annual report to the Governor and the legislature within 60 days after the end of each fiscal year. This report provides a crucial overview of the major changes in the banking industry since the previous report, as well as a statement on the condition of each bank.

Annual Report Requirements

The Director’s annual report is governed by Section 6116 of the Banking Code and must include:

• A summary of major changes in the banking industry
• A statement on the condition of each bank

This report is an essential tool for policymakers to stay informed about the state of the banking industry in the Northern Mariana Islands, enabling them to make informed policy decisions.

Minimum Capital Requirement

In addition to the annual report, Commonwealth banks are subject to various regulations and requirements under Chapter 2 of the Banking Code. One such requirement is Section 6203, which mandates that banks maintain a minimum paid-in-cash capital of $500,000 at all times.

This minimum capital requirement ensures that:

• Banks have sufficient funds to operate safely and soundly
• Banks can meet their obligations to depositors

The purpose of the minimum capital requirement is to protect depositors and promote financial stability in the banking industry. It serves as an important safeguard against bank failures and helps maintain public confidence in the financial system.

Additional Regulations and Requirements

Commonwealth banks are subject to various other regulations and requirements under Chapter 2 of the Banking Code, including:

• Provisions governing corporate structure, organization, and operation of banks
• Rules related to banking licenses
• Deposit insurance
• Membership in the Federal Reserve System

These regulations aim to promote a stable and robust financial system, ensuring that Commonwealth banks operate in a safe and sound manner.