Richmond – The State Corporation Commission (SCC) has approved Trustar Bank as a state-chartered bank. The Northern Virginia startup bank is the first to be formed under Virginia state banking law since 2008.
Trustar Bank, located in Great Falls, Virginia, becomes the 54th state-chartered bank regulated by the SCC’s Bureau of Financial Institutions. Commissioner of Financial Institutions E. Joseph Face, Jr., says, “Virginia banks are the economic backbones of the communities they serve.” He added, “The formation of a new bank in Virginia is a testament to the strength of our banking sector and regulatory environment. Virginians should be encouraged to see new banks once again being formed in the Commonwealth.”
Under a dual regulatory system, banks have the option to be state-chartered or chartered by Federal banking authorities. Virginia state-chartered banks are subject to regular examinations by the bureau for safety and soundness, consumer protection and local economic growth.
State and federal regulators collaborate to best supervise banks. Federal regulators provide a framework to manage systemic banking issues. State regulators construct supervision based on their local knowledge, authority, and focus.
In evaluating the bank’s charter application received on February 19, 2019, the Commission considered the quality of the bank’s directorate and management team, the adequacy of the proposed capital structure, and whether the public interest would be served by the proposed banking facility.
The Commission’s approval order requires the bank to secure deposit insurance from the Federal Depository Insurance Corporation (FDIC) before opening for business. FDIC insurance covers all types of deposits received at an insured bank. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.