State division to hire additional examiners

The Nevada Financial Institutions Division is preparing to hire 10 additional examiners to keep a tighter rein on payday lenders and closer watch on banks and credit unions, bringing the total to 28.

When the economy was surging, the division examined the books and records of strong banks and credit unions only once every 18 months to two years, said George Burns, commissioner of financial institutions.

With the economy slumping, "the safety and soundness ratings of our banks have been declining," Burns said.

So now, he is examining bank and credit unions a minimum of every 12 months and as often as every six months.

Also, Burns said he needs to closely regulate payday lenders and nonbank installment lenders.

The Legislature's Interim Finance Committee authorized the additional examiners Thursday, Burns said.

While the examiners will cost about $600,000 more yearly, the expense will be recovered through additional fees from regulated financial institutions and lenders, rather than the state general fund.

Burns thanked the committee and Gov. Jim Gibbons for approving the new positions, which he believes are justified given pervasive weakness among financial institutions.

Burns is looking for workers who have college degrees with concentration on finance and accounting.

For more information, visit the Nevada Department of Personnel Web site, http://dop.nv.gov/