Financial Code section 1150

In determining for purposes of this division whether the shareholders’ equity of a bank or of a proposed bank is adequate, the commissioner shall consider:

(a)

The nature and volume of the business of the bank;

(b)

The amount, nature, quality, and liquidity of the assets of the bank;

(c)

The amount and nature of the liabilities (including, but not limited to, any capital notes or debentures and any contingent liabilities) of the bank;

(d)

The amount and nature of the fixed charges of the bank;

(e)

The history of, and prospects for, the bank to earn and retain income;

(f)

The quality of the operations of the bank;

(g)

The quality of the management of the bank;

(h)

The nature and quality of the ownership of the bank; and

(i)

Such other factors as are in the opinion of the commissioner relevant.

Source: Section 1150, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=FIN§ionNum=1150.­ (updated Jan. 1, 2012; accessed Jul. 14, 2025).

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Verified:
Jul. 14, 2025

§ 1150's source at ca​.gov