Regulatory Alerts2005-01-26
Pennsylvania Department of Banking Position on Bank-Owned Life Insurance Regulation
The Pennsylvania Department of Banking issued a letter on January 26, 2005, confirming that state-chartered banks may purchase and hold bank-owned life insurance as an incidental power under the Banking Code of 1965. The Department determined that no additional state-specific guidelines are required beyond those established in the federal Interagency Statement on the Purchase and Risk Management of Life Insurance. However, the Department reserves the right to impose further conditions or requirements at any time if deemed necessary to ensure the safety and soundness of these institutions.
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