The bank will remain open throughout the process, which will take several months
Shelter Insurance employees were told Friday that the process of gaining government approval to close Shelter Bank will soon be undertaken.
Over the past few years the government regulations imposed on banks owned by insurance companies have expanded, becoming more cumbersome and expensive than when Shelter Bank began its operations. Also, compliance with new regulations now being discussed would potentially cost more than the income generated by Shelter Bank.
Therefore, and after a long and thorough analysis of the continued operations within these constraints, Shelter has made the decision to discontinue the operations of Shelter Bank. The regulatory requirements have become such that it is not feasible to continue the operation. Many of the insurance companies that own or operate a savings and loan institution are already de-registering or divesting themselves of their thrift operations or are planning to do so.
Shelter does not have a specific closing date for the Bank. It will take several months to work through the necessary regulatory steps to complete the closure. As these steps are completed, additional information will be provided regarding the actual closing date.
In the interim, the Bank will remain open.
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