The History of Banking in New York State

New York State banking policy began with an act in 1782 prohibiting the operation of any bank within the State, except for the Federal Bank of North America. In 1791, the legislature authorized a charter for the first State bank, the Bank of New York, and thereafter chartered other banks by special acts. A law in 1829 set up the Bank Fund, later renamed the Safety Fund, to guarantee the payment of debts of insolvent banks. All State-chartered banks were required to make an annual contribution to the fund, which was managed by the State treasurer. The same law provided for the appointment of three bank commissioners to examine the financial status of banks and to report annually to the legislature.

State regulation of banks was altered by the Banking Law of 1838 which required banks to file certificates of incorporation with the Secretary of State and report annually to the Comptroller. In 1843, the Comptroller was authorized to examine only when there was reason to suspect that a bank had made an incorrect report or was in an unsafe and unsound condition to continue business. On April 15, 1851, the legislature created the Banking Department with a chief officer to be known as the Superintendent. The first Superintendent of Banks was Daniel B. St. John. No major alteration of banking policy occurred for the next seventy-five years.

In 1932, the Banking Board was created to advise and cooperate with the Banking Department in the formulation of banking standards and to exercise power to approve or disapprove the issuance of bank charters and licenses and the establishment of branch banks.

The Banking Law requires the Department to examine the condition and affairs of all institutions subject to its supervision at prescribed intervals and to issue periodic calls for reports of condition.

The Department is included in the Executive Budget, and all expenses are paid by the Comptroller out of State funds, being reimbursed by the amounts assessed against the institutions subject to supervision. Expenses of examination and operation are paid entirely by the institutions subject to regulation.

Institutional History of Banks

To view the history of Banks and Trust Companies, Savings Banks, Savings and Loans, Credit Unions, Investment Companies and Foreign Banking Institutions, click on the first letter of the Institution's name. These listings contain institutions that are or were state chartered, as well as most federally chartered institutions operating in the state of New York.

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Sources of information and definition of terms used in these listings.