The Industrial Bank of Washington’s application for a charter from the District of Columbia has been approved, making the city government the bank’s regulator for the bank.
The bank — founded in 1934 and the largest minority-owned bank in the District — provides services for smaller, local companies and individuals.
It has one branch and $330 million in assets, making it the fourth largest minority-owned financial institution in the United States.
Approval of the charter means that it will be regulated by District law. Before the approval, it was regulated by the federal Office of the Comptroller of the Currency, the government body that oversees banks that do not have state charter.
Bank Chief Financial Officer Thomas Wilson said the main benefit in District regulation is financial.
“It helps reduce our costs,” he said. The Office of the Comptroller of the Currency “has a much higher examination fee.”
The charter approval is part of an effort by Ward 3 Council Member Mary Cheh to charter for banks in the District. Since joining the council, she has worked to modernize D.C. banking laws, making it easier for banks to fall under District regulations.
In the past eight months, two local banks have received District charters, doubling the previous total.
“I hope Industrial Bank’s decision to switch its charter to a District charter is the beginning of a new trend.” she said. “This is yet another sign that the District is a welcoming and sophisticated venue for banks to charter and offer their services.”
