Financial Institutions, Dept. of - As enacted, authorizes the commissioner to determine the type, amounts, and other characteristics of deposit insurance required to be maintained by each state bank; describes criteria the commissioner must consider in making the determinations. - Amends TCA Title 45, Chapter 2.

SB 1279 amends Tennessee's banking code to give the state banking commissioner authority to set deposit insurance requirements for state banks, directly affecting all Tennessee state banks. The commissioner must determine the type and amount of insurance based on five specific factors: bank safety/soundness, promoting Tennessee's economic progress, public confidence in banking, industry input, and other relevant considerations. The bill also requires the commissioner to follow standard rulemaking procedures when implementing these requirements. This law takes effect July 1, 2026, changing how deposit insurance is regulated for state banks in Tennessee.