Bank Branch and ATM Requirements - Financial Regulation
Last reviewed/updated: May 18, 2023
Establish a New Bank Branch in Maryland
- Maryland State-Chartered Bank – Maryland state-chartered banks must submit the Uniform Interstate Application/Notice to the Office of Financial Regulation (OFR) at least 30 days before the intended opening date. An expedited notice provision may apply for Maryland state-chartered banks. Please see Md. Code Ann., Fin. Inst. (“FI”) §5-1005(b) to determine if an expedited notice is applicable. Include the $400 expedited fee or the $600 standard fee in the form of a check made payable to the Commissioner of Financial Regulation or contact the OFR for wire instructions. Include whether the new location will be a leased or owned property, the total amount invested in new real property, and improvements. Provide a calculation to determine compliance with FI §5-503. The OFR encourages banks to use FDICconnect, the FDIC’s electronic filing of branch applications as described in FIL-96-2003.
- Other-State Bank – Provide the OFR with a copy of the branch application within 15 days of filing with the bank’s home state and federal regulator and qualify under §7-203 of the Corporations and Associations Article to do business in the State as a foreign corporation. Maryland requires reciprocity. Refer to FI §2-108 for required fees. Maryland requires reciprocity with the home state for fees.
- National Bank – Comply with the federal regulator. Provide a courtesy notice within 15 days of branch opening.
Discontinue a Bank Branch (permanent closure)
- Maryland State-Chartered Bank – Follow the FDIC branch closing requirements. A Maryland state-chartered bank is required to provide notice of its intention to permanently close a branch along with copies of the documentation provided to the FDIC or Federal Reserve Bank at least 30 days before the intended permanent closure.
- Other-State Bank or National Bank – Follow the branch closing requirements of the appropriate bank supervisory agency. Provide a courtesy notification.
Relocate an Existing Bank Branch
A Maryland state-chartered bank branch relocation is considered to be a relocation if it is within one (1) mile of the current location. If the distance is greater than one mile, or if new construction is involved it is considered a new branch, and a new branch application is required, and payment of the application fee is required. A Maryland state-chartered bank is required to provide notice of a branch relocation to the OFR along with copies of the documentation provided to the FDIC or Federal Reserve Bank at least 30 days before the intended relocation.
Relocate the Bank’s Main Office
A Maryland state-chartered bank must follow FDIC Federal Reserve Bank requirements to relocate the bank’s main office and provide the OFR with a copy of the documents provided to the FDIC. A Maryland state-chartered bank is required to provide notice of its intention to relocate its main office to the OFR along with copies of the documentation provided to the FDIC or Federal Reserve Bank at least 30 days before the intended relocation.
Maryland state-chartered banks and other state-chartered banks must provide written notice 15 days prior to the installation of an automated teller machine at a location other than the principal office or bank branch.
- Foreign Banking Corporation – Refer to FI §1-405.
- Close an ATM - No notice to the OFR is required to close an ATM.
- Refer to Md. Code Ann., Fin. Inst., Title 1, Subtitle 4 for ATM safety and other requirements.
Seasonal or Limited Operating Days
A Maryland state-chartered bank may request the OFR’s permission to operate a branch seasonally or for fewer business days than required by Maryland law. FI §5-703 These branches are typically in vacation areas, retirement communities, or university campuses. A Maryland state-chartered bank is required to provide notice of its request to operate a branch for fewer hours than required by Maryland law along with copies of the documentation provided to the FDIC or Federal Reserve Bank at least 30 days before the intended change.
Emergency and Temporary Bank Closures
If it is necessary to completely close the financial institution due to an emergency, Maryland law [Md. Code Ann., Fin. Inst. §§ 5-707(c) and 6-711] requires that Maryland state-chartered banks and credit unions notify the Governor’s Office within 24 hours of closing. The requirement to notify the Governor’s Office only applies if the entire institution is closed. If there are one or more branches still operating, the institution only needs to notify OFR. For more information, review the Emergency Preparedness Guide for Maryland State-Chartered Banks, Credit Unions, and Trust Companies. You may contact the Governor’s Office at 410-974-3901.
- Refer to FI §5-1001 et seq. for branches and FI §1-401 et seq. for the establishment of an automated teller machine.
- Maryland state-chartered banks should refer to FI §5-503 for investment in real property and furnishings.
- Refer to the FDIC Resource page for more information about establishing, relocating, or closing an office.
- More information for depository institutions is available on the Banks, Credit Unions and Trust Companies page.
- For questions about filing an application, contact Stephen Clampett, Assistant Commissioner, by phone at (410) 230-6104 or by email at firstname.lastname@example.org.
- Applications may be submitted to DLFRFinReg-LABOR@maryland.gov.
- Mailing Address:
Office of Financial Regulation
1100 North Eutaw Street, Suite 611
Baltimore, MD 21201
Laws, Rules, and Regulations
Banking institutions are expected to be knowledgeable about and in compliance with Maryland banking laws, and any other applicable State or Federal statutes, rules, and regulations. Maryland laws, rules, and regulations can be found by accessing the Annotated Code of Maryland and Rules and Code of Maryland Regulations (COMAR). Certain relevant Maryland laws, rules, and/or regulations include (Note: this is not a comprehensive list):
- Maryland Code, Financial Institutions Article, Title 1, Subtitle 4 (Automated Teller Machines)
- Maryland Code, Financial Institutions Article, Title 5, Subtitle 7 (Branch Hours and Emergencies)
- Maryland Code, Financial Institutions Article, Title 5, Subtitle 10 (Bank Branches)
- COMAR 36.03.03.07 (ATM Placement Limitations)