In 1907 the state of Utah created the Office of Bank Examiner. Prior to that time, from 1896 to 1907, state-chartered banks were supervised by the Secretary of State. In 1967, this state agency officially became the Department of Financial Institutions. (See History.)
The Department maintains a close working relationship with the institutions it regulates and through examination and supervision assures the public of the safety and soundness of those institutions. This objective is also in harmony with the state’s economic development goals. (See Mission Statement.)
The Department promotes a dual federal and state banking system. The dual banking system offers a choice between a national charter and a state charter. A state charter is often advantageous to financial institutions because the regulator is familiar with the community and management of the institution and also knows the trends in the
state’s economy. It’s the concept of the regulator being as close to home as possible.
The Department is a self-supported agency of state government and none of its operating expenditures are funded by general tax funds. Revenue is derived mostly from supervision, examination and registration fees assessed to those financial institutions and mortgage and consumer lending companies regulated by the Department.
Commissioner G. Edward Leary holds a cabinet appointed position reporting directly to Governor Spencer J. Cox (See Commissioner.)