NVDA bank’s new law to require banks to maintain records about customer accounts can help them compete with traditional financial institutions, a former state banking regulator said Monday.
The bank of Nevada, whose name translates to National Bank of Nevada , is one of a number of new banks that have made their presence felt in the banking industry as the industry’s consolidation and growth has spurred competition from smaller, local financial institutions.
The new Nevada law is intended to promote competition among banks, said Greg Bock, a partner at the law firm of Bock & Harlow who previously worked for the Nevada Division of Banking.
The banks are seeking to make sure they’re competitive and that they’re doing things that are fair, said Bock.
Nevada has a history of taking aggressive steps to increase competition.
In 2011, the state adopted a state-wide banking union, which will allow banks to operate on their own terms, with certain exceptions.
The state has also passed new legislation that will allow the state’s largest banks to set their own rules about customer access and disclosure.
The new law, however, is the first time that the state has required banks to disclose how they use customer information and has been used to push back against the idea that Nevada is not competitive, said David Cone, the former director of the Nevada Department of Banking and Insurance.
I think it’s going to create a lot of uncertainty and a lot more headaches for banks in the state,” Cone said.
Nevada’s banking industry, which includes large commercial banks, is in the midst of a consolidation and has faced some financial pressures in recent years.”
There’s going be a lot to sort through, and that’s going do some good,” Bock said.
Nevada’s banking industry, which includes large commercial banks, is in the midst of a consolidation and has faced some financial pressures in recent years.
The Nevada banking union is meant to give smaller banks a foothold in the industry and help the state keep pace with the growth of banks in other states.
Many smaller banks have struggled in the wake of the Great Recession, with their business models and customer service having fallen behind rivals.