Important Notification! - NDBF Securities Citizenship Verification Process Update

Effective December 2018, a new portal will be available for Investment Advisers and Broker-Dealers to submit information for the citizenship verification process.  Information about the new portal can be found here.

About Nebraska Banking & Finance

What We Do

Our agency serves the citizens of Nebraska through our various duties. Our field staff examines state-chartered financial institutions, delayed deposit service businesses (also known as payday lenders) and other industries to ensure sound operations and compliance with state laws. We register securities offered in Nebraska, business opportunities, investment advisors and broker-dealers. Our staff also investigates securities violations and consumer complaints against state-chartered or -licensed entities.

The Nebraska Department of Banking and Finance is a state agency under the direct supervision of the Governor. The Director of Banking and Finance is appointed by the Governor. We draw no funds from the General Fund of Nebraska; our agency is funded entirely by the industries we regulate. Our agency is comprised of two sections - Financial Institutions and Bureau of Securities. Together these two sections regulate several different financial industries. Listed are the various industries regulated by each section.

Financial Institutions

  • State-chartered banks, credit unions, savings & loans, and trust companies
  • Mortgage lenders
  • Consumer lenders (installment payment plans, finance plans and loan brokers)
  • Money transmitters
  • Delayed Deposit services (also known as payday lenders)

Bureau of Securities

  • Securities registrations and exemptions
  • Broker-dealers and agents Investment advisors and representatives
  • Business opportunities (also known as franchise filings)
  • Seller-assisted marketing plans and consumer rental purchase agreements
  • Nebraska Commodity Code

 

Our Mission

Our mission is to protect and maintain the public confidence through the fair, efficient, and experienced supervision of the state-regulated financial services industries; to assist the public in their dealings with those entities; to assist those whom we regulate in a manner which allows them to remain competitive, yet maintain their soundness in compliance with the law; to fulfill our statutory responsibilities with regard to all licensees and registrants; and to investigate violations of the laws and cooperate with other agencies in seeking a timely resolution of problems and questions.

 

The Director

Mark Quandah

 

History

The banking industry in Nebraska began shortly after the area was designated a territory in 1854. Banking was perhaps more closely related to the practice of issuing securities, as there was no government sanctioned legal tender at that time. Instead, a bank would print its own banknotes to issue as money. These notes were backed only by that particular bank. In 1855, the first territorial legislature convened and discussed many banking bills, which would have required incorporation of Nebraska territory banks. These measures failed. Any business conducting bank activity or banks were allowed to exist through special charters.

Special charters allowing banking activity continued even after the territory became the State of Nebraska in 1867. The first banking act wasn't approved until 1877, ten years after statehood. This first act merely required banks within the state to report to the Auditor of Public Accounts in December of every year. In 1889, the first three sections of this act were repealed and amendments were added that required banks to report to the State Treasurer and Attorney General in addition to the Auditor of Public Accounts.

In 1895, the State Banking Board was established with the State Auditor, Treasurer and Attorney General as the members. Heading the board was the newly established Secretary of the Board. In 1909, the State Treasurer was dropped from the board and the Governor added. The Governor also was given the ability to appoint the Banking Secretary.

In 1913, the Nebraska Legislature passed an act to "...regulate and supervise associations, companies, corporations and persons selling or negotiating for the sale within the State of Nebraska stocks, bonds or securities and prescribed penalties for the violation thereof." The administration of this law was placed under the jurisdiction of the State Railway Commission.

The Department of Trade and Commerce was formed in 1919. Its Bureau of Banking succeeded the State Banking Board. Jurisdiction over Blue Sky Laws (securities laws) was granted to the Department of Trade and Commerce in 1921, relieving this duty from the State Railway Commission.

Banking and securities were once again separated in 1933 when the newly formed Department of Banking took over the Banking Bureau formed under the Trade and Commerce Department and the new Department of Insurance was placed in charge of Blue Sky Law. In

1939, regulation of banks and securities once again merged when the Nebraska Legislature placed the Bureau of Securities under the Department of Banking. In 1941, the title Superintendent of Banking was changed to Director of Banking. In 1965 the Nebraska Securities Act replaced the Blue Sky Laws. And, in 1976 the name was changed to the Nebraska Department of Banking and Finance.