OKLAHOMA CITY (OBV) — Oklahoma Banking Commissioner Mick Thompson’s recommendation to reduce assessments paid by Oklahoma state-chartered banks was approved last week.
The Oklahoma State Banking Board signed off on the recommendation during its meeting on November 20.
The measure was taken in support of Gov. Kevin Stitt’s pledge to make state agencies more fiscally responsible.
The Banking Board set assessments at the rate first established in 2004, then approved a 70 percent discount for banks with assets less than $1 billion and 25 percent for banks with assets exceeding $1 billion.
Thompson presented a proposed budget to the Board, showing how the Oklahoma Banking Department can operate efficiently even with such a large discount, according to Banking Department officials.
The Board also approved reducing assessments for state-chartered banks since 2012. Banking Department officials say estimates show this year’s reduction will cause the department to operate with a budget deficit for 2025 and require a portion of its reserve funds to make up the difference.
Thompson warned against the department holding excessive reserve funds. He said the reduction enables the department to maintain a reserve account that cushions against unplanned events but also meets Stitt’s call for fiscal responsibility.
Reduction assessments help the Banking Department reduce regulatory burden on state-chartered institutions, according to Thompson.
Thompson said although the federal government issues most regulations, precluding states from directly eliminating that burden, any savings achieved by reducing assessments can be redirected toward other operations and help offset increased costs incurred to comply with federal laws.
This year’s reduction is more than $5.2 million. Total assessment reductions for Oklahoma banks over the past several years exceed $30 million.
