TDB

📖 Introduction

overview
The Texas Department of Banking (TDB) is a state-level regulatory agency established in 1905 that works to ensure that Texas has a safe, robust, and competitive financial services system. Its mission is to protect consumers, maintain financial stability, and promote the banking industry. The TDB is responsible for chartering, regulating and inspecting commercial banks, trust companies, money services businesses, and other financial entities registered in the state. As of 1992, TDB regulates 530 state-chartered banks with total assets of more than $45 billion.

Key Functions

• Banking Charter and Regulation: Issuing state chartered banking licenses to oversee the bank's financial health, management practices, information technology risks, and compliance.

• Consumer Protection: Handling consumer complaints, regulating currency transmission and currency exchange operations, preventing money laundering and financial crimes.

• Enforcement and compliance: Cease-and-desist orders or penalties are issued for non-compliance under the Texas Financial Code.

• Collaborative Regulation: Collaborate with federal agencies (e.g., FDIC, Federal Reserve, OCC) to ensure that state chartered banks comply with federal and state law requirements.

Organizational structure
The TDB is headed by the Banking Commissioner, who also serves as the Executive Director of the Financial Commission. The department has core projects such as banking and trust supervision and money services business supervision, and has four regional offices (San Antonio, Lubbock, Dallas, and Houston). The TDB is overseen by the 11-member Finance Commission of Texas, whose members are appointed by the governor and include representatives from banks, savings and loan associations, and the consumer credit and mortgage industries.

History and Impact

inception in 1905, TDB has undergone several reforms, including a response to bank closures during the Great Depression, modernization reforms in the 1940s such as increased capital requirements, and regulatory updates in fintech in the 2010s (such as the online license renewal system). In 2012, TDB partnered with the U.S. Secret Service to launch the "Operation Texas Money Mule" to combat corporate account takeover risks. TDB's regulatory framework provides stable support to the Texas banking sector and is seen as a model for state-level banking regulation in the United States.