Oklahoma Bankers Association We make bankers better!
At its meeting in November, the Oklahoma State Banking Board approved the State Banking Commissioner Mick Thompson’s recommendation to reduce assessments paid by Oklahoma state-chartered banks.
After setting assessments at the rate first established in 2004, the board then approved a discount of 70% for banks with assets less than $1 billion and 25% for banks with assets exceeding $1 billion. Based on estimates, this year’s reduction will result in the Department operating with a budget deficit for 2025 and require it to use a portion of its reserve funds to make up the difference. Commissioner Thompson emphasized the Department should not hold excessive reserve funds, and said the board’s action will allow the Department to maintain a reserve account that provides a reasonable cushion for unplanned events, but will also fit within the governor’s call to be fiscally responsible.
Commissioner Thompson stated a reduction in assessments is one of the ways the Banking Department can reduce regulatory burden on state-chartered institutions. He recognized most regulatory matters are issued from the federal government and states cannot directly eliminate that burden. He stated that any savings achieved by a reduction in assessments, however, can be redirected toward other operations and help offset increased costs incurred to comply with federal laws.
This year’s reduction amounts to over $5.2 million, and the total reduction in assessments for Oklahoma banks over the past several years is more than $30 million.