ARIZONA DEPARTMENT OF FINANCIAL INSTITUTIONS

Our Mission

To license, examine, and supervise Financial Institutions, in compliance with State law, to ensure safety for the Arizona consumer and soundness for the Arizona business.

What does the Department of Financial Institutions do?

A: Regulated financial service companies must receive a charter, license or registration (depending on the type of financial services it offers) from the Department. Once a regulated company is in business, it is subject to periodic examination by the department. In the event a company is failing and threatens to damage consumers, the Department, as ordered by an appropriate court of jurisdiction, may place the business into receivership, which allows the Department to distribute assets to creditors and customers.

Agency Mission:

To license, examine, and supervise Financial Institutions, in compliance with State law, to ensure safety for the Arizona consumer and soundness for the Arizona business.

Agency Description

The Department of Financial Institutions is statutorily charged with the licensing, supervision and regulation of state chartered financial institutions and enterprises. The responsibility is twofold: ensuring the safety and soundness of state chartered financial entities, as well as compliance with applicable state and federal laws. The Department also reviews complaints that are filed by consumers against licensed entities when violations of state law or rules have been alleged, directing appropriate remedial action if the violations are substantiated. The Department serves approximately 3, 600 entities licensed to conduct business in the state, as well as Arizona citizens who receive services from these companies.

What are the Department’s resources?

The Department’s sole location is at 44th Street and Thomas Road in Phoenix.

What does licensing entail?

Prospective licensees submit an application with completed personal history and financial statements. Department personnel review the application for conformity with statutory requirements. Several industries have special requirements. For example, such institutions as banks, credit unions and savings and loan associations are required to have sufficient start-up capital, as determined by the superintendent.

What does supervision entail?

Supervision for the most part refers to examinations. However, it also involves responding to any questions licensees may have and keeping them informed of regulatory changes the Department is planning. Most industries are subject to examination only of their compliance with statutes. Banks, credit unions, savings and loan associations and trust companies are examined to determine their safety and soundness. Rankings are on a scale of one to five, with one being the top score.