HRS §412:11-102
State checks on companies that own Hawaii banks
The state banking commissioner can inspect a company that directly owns 25% or more of a Hawaii bank's voting stock to see if it threatens the bank's safety. The commissioner cannot inspect a company that only indirectly controls a bank unless there is good reason to believe the company's financial problems could seriously hurt the bank. The inspected company must pay for the examination.
financial institutions
The statute, as written — Examination of financial institution holding company
The commissioner may from time to time conduct reasonable examinations of any financial institution holding company that directly owns twenty-five per cent or more of any class of voting securities of a Hawaii financial institution as may be necessary or appropriate to determine whether the condition or activities of the company are jeopardizing the safety or soundness of the operations of its financial institution subsidiary. The commissioner shall not conduct an examination of any financial institution holding company that indirectly controls a Hawaii financial institution through one or more financial institution holding companies unless the commissioner has good cause to believe that the financial institution holding company indirectly controlling the Hawaii financial institution is experiencing financial adversity that will have a material negative impact on the safety and soundness of the Hawaii financial institution. The cost of the examinations shall be assessed against and paid by the financial institution holding company in the same manner as financial institutions under section 412:2-105.
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