# Financial Institutions (GFI)

## Title 4. Banking Institutions -- Savings Banks

### Subtitle 2. Formation and Powers

#### Section 4-208

(a) Before the Commissioner issues a certificate to do business, a savings bank shall have an initial guaranty fund that equals at least:

  (1) The minimum amount of capital stock required for formation of a commercial bank in the municipal area of the proposed savings bank; and

  (2) Any greater amount that the Commissioner determines is necessary to keep the savings bank solvent.

(b)

  (1) Before a savings bank establishes a branch, the savings bank shall have a guaranty fund as provided in this subsection.

  (2) For a branch that is to be located inside the municipal area of the principal banking office of the savings bank, the savings bank shall have a guaranty fund of not less than 5 percent of its total deposits.

  (3) For a branch that is to be located outside the municipal area of the principal banking office of the savings bank, the savings bank shall have a guaranty fund of not less than the sum of:

    (i) 5 percent of its total deposits; and

    (ii) The minimum capital and surplus that is required for formation of a commercial bank in the municipal area of the proposed branch.

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Md. Code Ann., Fin. Inst. (as displayed at mgaleg.maryland.gov, October 16, 2026)