Raised Bill No. 5145 Summary

• Establishes the definition of "innovation bank" as a Connecticut bank that does not accept retail deposits and does not require Federal Deposit Insurance Corporation insurance, replacing previous references to "uninsured bank" throughout Connecticut banking statutes.

• Allows innovation banks to organize with a minimum equity capital of at least $5 million (unless commissioner establishes different requirements) and requires them to maintain $1 million in approved assets on deposit with other banks.

• Permits innovation banks and trust banks to convert to regular Connecticut banks accepting retail deposits, and allows regular Connecticut banks to convert to innovation banks by liquidating retail deposits, subject to commissioner approval.

• Applies comprehensive regulatory requirements to innovation banks including assessment fees, disclosure requirements on deposit materials, detailed fiduciary account handling procedures, and specific priority rules for asset distribution in receivership.

• Effective July 1, 2024; makes conforming changes across 16 different sections of Connecticut General Statutes related to bank organization, operations, conversion, and receivership procedures.