The minimum total capital required for operating branch banks is eight percent of the deposits of the entire bank. The director may not approve an application to establish a branch bank unless the bank's total capital is at least eight percent of the total projected deposits of the entire bank at the end of three years' operation of the proposed branch bank. The approval shall also require the bank to maintain total capital equal to or greater than eight percent of deposits.

The director shall consider as a separate category the establishment of branch banks by a purchase of assets and assumption of liabilities of an existing branch bank or bank. In such cases, the director shall consider the current financial condition of the acquiring bank. The director may authorize the establishment of such a branch bank if the acquiring bank's total capital after the acquisition of the branch will be not less than six percent of the total assets of the entire resulting bank.

Source: 8 SDR 31, effective September 30, 1981; 9 SDR 143, effective May 19, 1983; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 15 SDR 28, effective August 21, 1988; 34 SDR 322, effective June 30, 2008.

General Authority: SDCL 51A-2-13 , 51A-7-3.

Law Implemented: SDCL 51A-3-8 , 51A-7-3.