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The Texas Department of Banking is a state regulatory agency that charters state banks, examines and supervises banks, and oversees certain other financial services.
Established in 1905, the department’s mission today is “to ensure Texas has a safe, sound and competitive financial services system.” It shares this responsibility with several federal regulatory bodies, including the Federal Deposit Insurance Corporation, Federal Reserve Board, and the Office of the Comptroller of the Currency.
Programs and Activities
The department’s bank inspectors examine Texas banks, focusing on banks’ overall financial health, management practices, information technology risks, and compliance with state and federal laws.
The department also licenses and regulates money services business that conduct currency exchange or money transmission activities. The department aims to protect consumers who use money services businesses, and to ensure that these companies properly monitor transactions to deter money laundering, terrorist funding, and financial crimes.
The Texas Department of Banking also supervises perpetual care cemeteries, prepaid funeral contracts, and cemetery brokers.
Structure and Oversight
The Texas Department of Banking reports to an 11-member citizen board called the Finance Commission of Texas. This body is appointed by the governor and includes representatives of state banks, savings and loan associations, consumer credit institutions, and residential mortgage loan originators. The commission oversees three state agencies.
The department itself is led by a Banking Commissioner, who is also Executive Director of the Finance Commission. He is assisted by a chief operating officer and deputy commissioner, who oversees the various programs of the department. The largest program, Bank and Trust Supervision, has four regional offices in San Antonio, Lubbock, Dallas, and Houston.
