Regulatory Alerts2022-08-03
Investment Powers of State-Chartered Financial Institutions in Public Welfare Investments
The Louisiana Office of Financial Institutions issued Policy DI-02-2018 to clarify the investment powers of state-chartered financial institutions regarding public welfare investments. The policy establishes eligibility criteria requiring primary benefits to low- and moderate-income individuals or targeted redevelopment areas, alongside compliance with federal tax credit programs and liability limitations. Institutions meeting specific capitalization and rating thresholds may invest without prior Commissioner approval up to a five percent aggregate limit, while non-qualifying investments require explicit approval and are capped at ten percent of tier 1 and tier 2 capital.
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