MarylandSB 00432026 Regular SessionSenateWALLET

Financial Institutions - Maryland Community Investment Venture Fund and Regulation of Entities - Revisions

Sponsored By: Sponsor information unavailable

Signed by Governor

Financial InstitutionsAssessments -see also- Property TaxBanks and Trust CompaniesCommunity DevelopmentCredit UnionsCybersecurityEmergencies -see also- PandemicsFees -see also- Attys' Fees; Devt Fees & TaxesFinancial Institutions -see also- Banks; Credit Unions; etc.Financial Regulation, Division ofGrantsInterestInvestments -see also- SecuritiesRevenue and Taxes -see also- (specific tax)Rules and RegulationsStandards and Best PracticesTreasurers

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 5 benefits, 0 costs, 3 mixed.

State seed money and matching through 2030

Beginning July 1, 2026, the Commissioner can spend up to $250,000 from the Banking Institution and Credit Union Regulation Fund for Fund startup and admin costs. The Commissioner can also invest up to $2,500,000 in equity to attract private investors. Through June 30, 2030, the Commissioner may match a bank or credit union’s investment in the Fund up to the amount of that institution’s assessment credit. No new State investments are allowed after June 30, 2030.

Credits for Maryland Opportunity Accounts

Starting July 1, 2026, well‑capitalized banks with a CAMELS rating of 1, 2, or 3 can get a $5,000 assessment credit when first approved to offer a Maryland Opportunity Account, plus $3,000 for each later year the account stays active. Well‑capitalized credit unions with at least $300,000 in assets and a CAMELS rating of 1, 2, or 3 get the same credits. For credit unions, the assessment payment deadline moves to April 15 each year.

Ban on fake bank or credit names

Starting July 1, 2026, only authorized banks and credit unions may use names or words that suggest they do banking or credit union business in Maryland. Breaking the rule is a misdemeanor with up to a $3,000 fine, up to 5 years in jail, or both. Victims also have civil remedies for deceptive marketing.

Cyber attacks count as bank emergencies

Starting July 1, 2026, a serious cybersecurity incident counts as an emergency that allows a bank or branch to close. This helps protect customers and operations during major cyber events.

New fund for low-income communities

Beginning July 1, 2026, Maryland creates the Community Investment Venture Fund. It uses public and private money to test and deploy new financial products and underwriting that expand access to capital in low- and moderate‑income tracts. The Commissioner sets the Fund’s governance, serves on its board, and can issue rules. Each year, an independent reviewer checks if investments follow the law. The Fund is a special nonlapsing fund held by the State Treasurer; its interest stays in the Fund, and it is exempt from interest sweeps to the General Fund. Returns or returned capital from Commissioner‑backed investments are credited to the Banking Institution and Credit Union Regulation Fund. The Commissioner may set up additional private venture funds under the same rules.

Small fee changes for bank filings

Starting July 1, 2026, a person other than a banking institution pays a nonrefundable $50 advance fee to get a certificate of valid charter. Also starting July 1, 2026, commercial banks no longer pay the $20 exam fee when filing a proposed charter amendment.

Clearer dates for bank branch credits

Starting July 1, 2026, a bank branch counts if it is open to the public on December 31 of the year before a credit request. A de novo branch is one first opened in that prior year and not from an acquisition or conversion. The Commissioner sets the deposit‑growth cap by December 31 before a bank asks for an assessment credit. These timing rules affect how banks qualify and calculate their credits.

Updated definitions for banks and fiduciaries

Beginning July 1, 2026, “banking institution” means a State‑chartered bank, trust company, or savings bank. “Fiduciary institution” now explicitly includes State banking institutions and excludes persons licensed under Title 11. These updates clarify which entities follow banking and fiduciary rules.

Sponsors & Cosponsors

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 167 • No: 9

House vote • 4/2/2026

Third Reading Passed

Yes: 123 • No: 9 • Other: 10

Senate vote • 2/12/2026