Garden state cultivating charter-hoppers.

New Jersey wants banks shopping for a new headquarters to buy the Garden State's charter.

Spurred by the interstate banking law, New Jersey's Department of Banking joined hundreds of vendors hawking their wares at the American Bankers Association's annual convention last week in New York.

If not unprecedented, it is at least unusual for a state banking department to rent a booth at the ABA convention. But states are competing against each other and the federal government for banking charters as the industry consolidates.

"With the interstate branching bill, we just thought it was an excellent opportunity to attract banks to New Jersey," said Gabrielle Charette, the department's director of legislative and public affairs.

New Jersey's booth at the ABA convention offered pins in the shape of the state, business card holders, and a folder full of information, including a letter from the banking commissioner.

"Every division of the department strives to work with you," read the letter from Commissioner Elizabeth Randall. "We believe our best-selling features are our accessibility and our responsiveness."

The banking department's philosophy on everything from exams to enforcement is spelled out.

Regulation by the state costs less, the department explained. Like federal regulators; New Jersey levies a flat fee based on asset size for a bank exam, but the state also charges the bank by the day. So if a bank is doing well and the exam does not take long, the bank saves money, Ms. Charette explained.

"The feds just slap you with an assessment regardless of how long an exam takes," she added.

In addition, the promotional material distributed at the ABA convention explains, "The institution has access to the department's executive staff should there be questions with respect to the examination process."

New Jersey's banking department also promises a quick turnaround on applications filed by banks with strong capital, solid performance ratings, and good grades under the Community Reinvestment Act.

New Jersey state banks will not face rules that are more stringent than federal regulations, the department pledges. As for enforcement, New Jersey regulators vow to be "productive rather than punitive.

"The involvement of enforcement does not mean that you have done something wrong," according to the department. "It does mean that we are concerned with your trend."

New Jersey already has the bulk of the state's banking business as 143 of the 205 banks and thrifts based in New Jersey hold state charters.

While attracting out-of-state banks was the department's primary goal, Ms. Charette adds, "if any of those federal charters wants to covert, that's fine with us, too."

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