AN ACT to amend Tennessee Code Annotated, Title 45, relative to financial institutions.
Summary
HB0109 amends Tennessee banking law to require all Tennessee state-chartered banks to obtain an annual audit of their financial statements by an independent certified public accountant at least once each calendar year, with audits occurring at intervals of no more than 15 months. The requirement does not apply if the bank’s financial statements are already included in the audit of its holding company’s consolidated financial statements.
The bill also requires each bank’s board to review and discuss the audit and record that discussion in the minutes. In addition, banks must provide the commissioner with a copy of the external audit, including any management letters, within 45 days of receiving it, and must promptly notify the commissioner when an outside auditor is first engaged or when there is a change or termination of the bank’s independent accountant.
Impact
The bill updates Tennessee Code Annotated Section 45-2-402 by strengthening reporting and oversight requirements for state-chartered banks. It increases regulatory transparency by mandating timely delivery of audit materials and notification of auditor changes to the banking commissioner, while preserving an exception for banks covered through holding company consolidated audits. The practical effect is to formalize annual independent audit expectations and improve the state’s ability to monitor bank financial condition and auditor relationships.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears to be a routine regulatory update rather than a controversial proposal. Its focus on audit compliance, board oversight, and regulator notification suggests a generally technical and supervisory purpose aimed at banking safety and soundness. No opposing viewpoints or recorded dissent are available in the provided context.
Contention
No specific points of contention are documented in the provided committee transcripts or vote history. Potential areas of concern, if raised, would likely involve compliance costs for smaller state-chartered banks, the timing burden of the 45-day audit submission deadline, or whether the holding-company audit exception is sufficiently broad. However, the available record does not show any identified opponents or disputed provisions.