Department of Financial Institutions
Assets Grow at Kentucky Financial Institutions
FRANKFORT, Ky. – (July 1, 2010) – The Kentucky Department of Financial Institutions (DFI) today released its 2009 annual report. While some declines can be expected due to the current economy, Kentucky financial institutions continue to hold steady or even improve in areas such as asset growth and profitability.
For most of 2009, Kentucky was ranked eighth in profitability out of the 50 states by the Federal Deposit Insurance Corp., despite declines. And while the rest of the nation’s banks experienced negative asset growth, Kentucky’s 157 state-chartered banks increased total assets to $44 billion, which represented a 5.7 percent growth rate. Kentucky was one of only three states that had positive loan growth for every quarter in 2009.
“The Kentucky banking industry successfully dealt with economic problems through good management, conservative investments, strong capital ratios and proactive resolution of problems,” said DFI Commissioner Charles Vice. “This does not mean that Kentucky is devoid of problems, but when problems occur, the industry is able to withstand the storm.”
State-chartered credit unions also continue to see positive asset growth. Kentucky’s 26 state-chartered credit unions managed nearly $1.7 billion in total assets in 2009, with asset growth at 10.2 percent.
House Bills 106 and 444, passed by the 2009 Kentucky General Assembly brought changes to the mortgage and payday lending industries, respectively. Kentucky is now in compliance with the federal SAFE Act, which includes numerous consumer protections and more stringent requirements for mortgage loan originators. The newly implemented real-time database mandated in House Bill 444 will ensure that payday lenders comply with state law.
DFI also continues to ensure that the investment companies, broker-dealers and advisers serving Kentucky citizens are operating legally and ethically. Even as the number of registered broker-dealers, agents, and state investment advisers decreased slightly, DFI increased the number of examinations and investigations. In 2009, investigations resulted in $654,861 restitution for consumers who were victims of securities fraud.
The DFI annual report contains statistical and historical information regarding the financial services industry in Kentucky. For more information, or to view or download the entire report, visit www.kfi.ky.gov/aboutus/annualreports.htm.
DFI is an agency in the Public Protection Cabinet. It supervises the financial services industry by examining, chartering, licensing and registering various financial institutions, securities firms and professionals operating in Kentucky. DFI’s mission is to serve Kentucky residents and protect their financial interests by maintaining a stable financial industry, continuing effective and efficient regulatory oversight, promoting consumer confidence, and encouraging economic opportunities.