IBA Compliance Connection

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We are an Indiana savings bank. We also have branches in Illinois, and we are still open for business but have closed our branch lobbies to foot traffic. We have notified the FDIC and the Indiana Department of Financial Institutions of this modification of our services, and we are planning to send a courtesy notice to the Illinois Department of Financial and Professional Regulation (IDFPR). Where should such notices be directed, and has the IDFPR issued any FAQs for banks or hosted any calls related to the COVID-19 pandemic?

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The IDFPR is accepting notices of modifications in branch services at [email protected].

The IDFPR issued written guidance on lobby closure issues related to the COVID-19 pandemic on March 16, 2020. The IDFPR guidance, copied below, states that banks may close their lobbies in response to the COVID-19 pandemic without obtaining an official proclamation from the IDFPR — provided the branches remain open in some manner (for example, by providing drive-through teller services). In such cases, the IDFPR has asked that banks notify the Division of Banking of these branch-access changes at the email address provided above, [email protected].

We are aware that banks have questions regarding conducting business during this difficult time. Specifically, we have received a number of questions regarding closing lobbies, closing branches, etc. If a bank intends to close its lobby and instead conduct business through its drive through during its normal business hours, no proclamation is required. If, however, a bank intends to close a branch or change its business hours, a proclamation is required. In any of the above cases, the bank should notify the Department of its planned changes. As always, when the bank returns to normal operations, the bank should notify the Department. If there are any questions on this or any other issues, please contact Chasse Rehwinkel at 312-793-0471 or Kerri Doll at 217-558-4938. Any notifications of changes in operation can be sent to [email protected].

To date, the IDFPR has not scheduled any calls for banks, but we recommend monitoring our COVID-19 webpage, linked to below, as well as GoToIBA.com for further developments.

For resources related to our guidance, please see:

  • Banking Emergencies Act, 205 ILCS 610/2(a) (“Whenever the Commissioner is notified by any officer of a bank or by any other means becomes aware that an emergency exists, or is impending, he may, by proclamation, authorize all banks in the State of Illinois to close or alter the hours at any or all of their offices, or if only a bank or banks, or offices thereof, in a particular area or areas of the State of Illinois are affected by the emergency or impending emergency, the Commissioner may authorize only the affected bank, banks, or offices thereof, to close. The office or offices so closed may remain closed until the Commissioner declares, by further proclamation, that the emergency or impending emergency has ended. . . .”)
  • Banking Emergencies Act, 205 ILCS 610/1(1) (“‘Commissioner’ means the officer of this State designated by law to exercise supervision over banks and trust companies, and any other person lawfully exercising such powers, except that beginning on the effective date of this amendatory Act of the 96th General Assembly, all references in this Act to the Commissioner of Banks and Real Estate are deemed, in appropriate contexts, to be references to the Secretary of Financial and Professional Regulation.”)