California Department of Financial Institutions Receives National Accreditation from Conference of State Bank Supervisors (CSBS)

Jun 28, 2006

San Francisco- Acting Commissioner of Financial Institutions Michael A. Kelley announced today that the Department of Financial Institutions (DFI) has received professional accreditation from the Conference of State Bank Supervisors (CSBS), certifying that DFI maintains the highest standards and practices in state banking supervision.

“We are excited and proud to receive the important certification for being an accredited state bank regulatory department. It is recognition of the hard work and dedication of our staff and leadership. Maintaining the integrity of financial services remains our primary mission as the industry continues to grow,” said Kelley.

DFI supervises 187 commercial banks with assets of $193.7 billion, 11 non-depository trust companies, 15 industrial banks and 37 foreign banking operations.

The CSBS Accreditation Program identifies banking departments that serve the citizens of their state by operating a capable and professional regulatory program. DFI is required to complete annual reviews to maintain its accredited status and also undergo a complete re-accreditation process every five years. DFI was first accredited in 1990.

The rigorous accreditation process begins with a self-evaluation, which reviews all aspects of the department’s operations, its mission, policies, procedures, funding, and statutory authority. A review team of veteran state and federal regulators visits the department to determine whether it can effectively fulfill its responsibility of chartering, regulating and supervising the state’s banks and bank holding companies. The review team reports its findings and makes a recommendation to CSBS’s Performance Standards Committee, which votes on the final accreditation decision.

CSBS President and CEO Neil Milner when announcing the accreditation said, “Accreditation is an ongoing process that requires constant review of all department functions. These banking departments have demonstrated their ability to meet the challenges of the constantly changing banking industry.”

Founded in 1902, the Conference of State Bank Supervisors is the professional association of state officials responsible for chartering, supervising, and regulating the nation’s 6,300-plus state-chartered commercial and savings banks, and more than 400 state-licensed foreign banking offices nationwide. CSBS is the only national organization dedicated to enhancing the value of the state charter and strengthening the dual banking system.

CSBS has now accredited 45 of the nation’s 54 state banking departments; these agencies supervise more than 95 percent of all assets in state-chartered banks around the country. For additional information on CSBS, visit their Web site at:

DFI supervises over 700 financial institutions with assets totaling over $290 billion. The Department is responsible for administering state laws regulating state-licensed financial institutions: banks, credit unions, industrial banks, savings associations, trust companies, offices of foreign banks, issuers of travelers’ checks and payment instruments (money orders), and transmitters of money abroad. DFI reports to Business, Transportation & Housing Agency Secretary Sunne Wright McPeak and Gov. Arnold Schwarzenegger.