Yes, the Illinois Banking Act enumerates the investments that a bank can make, including specific limitations by type of security and by issuer. For example, the total amount of marketable investment securities from any one issuer shall not exceed 20% of a bank’s capital and surplus (with certain exceptions).
In addition to the limitations and exceptions described in the Illinois Banking Act, the Illinois Department of Financial and Professional Responsibility has issued numerous interpretive letters and policy statements outlining its own guidance on bank investments. We recommend you review these sources if you have questions about specific investments in your bank’s portfolio.
For resources related to our guidance, please see:
- Illinois Banking Act
- 205 ILCS 5/33 (Marketable investment securities limit)
- 205 ILCS 5/34 (Exceptions to loans and investment limits)
- 205 ILCS 5/35 (Exemptions from loan and investment limits)
- 205 ILCS 5/35.1 (Lease limitations)
- 205 ILCS 5/35.2 (Limitations on investments in and loans to affiliates)
- IDFPR, Interpretive Letters (Relevant letters regarding bank investments are on the bottom third of the page)
- IDFPR, Policy Statement 2001 — Eliminating Violations of Law Pertaining to Lending, Investment and Lease Limitations