PA 07-14—HB 7108

Banks Committee

AN ACT PROHIBITING BANK BRANCHING IN CERTAIN RETAIL LOCATIONS

SUMMARY: This act prohibits (1) Connecticut and out-of-state banks from establishing or maintaining a branch and (2) Connecticut banks from establishing or maintaining a limited branch, in this state on the premises or property of their affiliates if the affiliates engage in commercial activities. The banking statutes define an affiliate as any entity controlling, controlled by, or under common control with another entity.

The act defines “commercial activities” as those in which a bank or financial holding company, national bank, or national bank financial subsidiary may not engage under federal law. Generally, the federal Bank Holding Company Act and the National Bank Act limit these entities to financial activities, such as taking deposits, money lending, and securities activities.

EFFECTIVE DATE: Upon passage

OLR Tracking: SC: KM: CR: TS