Examinations and Reports-bankingReports

Section § 520

Explanation

California state banks are required to display a notice in their main office and branches (excluding ATM-only locations) that informs people they can request a financial report from the bank. This notice must include contact details for obtaining the report. When someone requests it, the bank must send the report, with the first one provided for free.

The financial report should include either information required by regulations set by the commissioner or, if no regulation exists, the most recent balance sheet and income statement filed with the commissioner.

(a)CA Financial Code § 520(a) A California state bank shall prominently display in the lobby of its main office and each branch office, except an automated teller machine branch office, a notice that any person may obtain a financial report from the bank. The notice shall include the address and telephone number of the person or office to be contacted for a financial report. The bank shall, promptly after receiving a request for a financial report, mail or otherwise furnish the financial report to the requester. The first financial report shall be provided without charge.
(b)CA Financial Code § 520(b) The financial report called for in this section shall contain either (1) the information that the commissioner may require by regulation or (2) in the absence of a regulation, the last balance sheet and income statement, each without any schedules, that the bank filed with the commissioner pursuant to Section 453.
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Section § 521

Explanation

Banks and credit unions in California must report by March 1 each year to a state commissioner how much money they made from overdraft fees and nonsufficient funds fees during the previous year. They also need to show what percentage of their total income these fees represent.

The commissioner must then publish this information, starting with data from 2022, by March 31 annually on their website. This helps the public see how much banks and credit unions rely on these fees for profit. Overdraft fees occur when customers spend more money than they have, and the bank covers the transaction, while nonsufficient funds fees happen when the bank rejects a transaction due to a lack of funds.

(a)CA Financial Code § 521(a) A bank or credit union subject to the examination authority of the commissioner shall report annually, on or before March 1, to the commissioner on the amount of revenue earned from overdraft fees and nonsufficient funds fees collected in the most recently completed calendar year and the percentage of that revenue as a proportion of the net income of the bank or credit union.
(b)Copy CA Financial Code § 521(b)
(1)Copy CA Financial Code § 521(b)(1) The commissioner shall publish, pursuant to paragraph (2), in a report the data for each bank or credit union required by subdivision (a) and make the report available on the department’s internet website.
(2)Copy CA Financial Code § 521(b)(2)
(A)Copy CA Financial Code § 521(b)(2)(A) The commissioner shall publish the first report required by this subdivision on or before March 31, 2023, covering data from the 2022 calendar year.
(B)CA Financial Code § 521(b)(2)(A)(B) In a calendar year beginning on or after January 1, 2024, the commissioner shall publish the report required by this subdivision on or before March 31 covering data from the most recently completed calendar year.
(c)CA Financial Code § 521(c) As used in this section:
(1)CA Financial Code § 521(c)(1) “Nonsufficient funds fees” means fees resulting from the initiation of a transaction that exceeds the customer’s account balance if the customer’s bank or credit union declines to make the payment.
(2)CA Financial Code § 521(c)(2) “Overdraft fees” means fees resulting from the processing of a debit transaction that exceeds a customer’s account balance.
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