State-chartered banks, credit unions and other depository institutions are under the jurisdiction of the Depository Institutions Division of the Kentucky Department of Financial Institutions (DFI). Depository institutions regulated by DFI include:
- State-chartered banks
- Trust companies
- State-chartered credit unions
- Savings and loan associations
Through its Bank and Credit Union branches, the Depository Institutions Division examines companies and investigates complaints and suspicious activity. The division also provides educational materials and outreach to protect consumers from financial fraud.
The Bank Branch is responsible for chartering and regulating Kentucky’s state-chartered banks, bank trust departments, independent trust companies, bank holding companies and banks' information systems as established in Kentucky Revised Statutes (KRS) 286.3
DFI's efficient and effective examination program has been recognized by the Conference of State Bank Supervisors (CSBS) for meeting the rigorous standards of examination excellence. CSBS originally accredited the agency in 1992, with reaccreditations in 1997, 2002, 2007 and 2012. By achieving this high level of excellence, DFI is recognized for the ability to effectively supervise its regulated institutions.
DFI has agreements with the Federal Deposit Insurance Corporation and the Federal Reserve Board, which allow maximum use of examination resources while reducing regulatory burden. These agreements provide supervision through examinations conducted jointly or alternately.
Credit Union Branch
The Credit Union Branch regulates state-chartered credit unions operating in Kentucky under KRS 286.6
DFI is noted for excellence in its examination program through its accreditation by the National Association of State Credit Union Supervisors (NASCUS). The NASCUS accreditation program is a national program designed to create continuity and to strengthen state credit union governing agencies. NASCUS most recently reaccredited the agency in 2012, and previously in 2007, 2002, 1997 and 1992.
DFI has an examination agreement with the National Credit Union Administration (NCUA), which maximizes the examination process and reduces regulatory burden by allowing joint or alternating examinations.