pc
nid 91210
Mar 06, 2026
ataylor@vixio.com
California
Department of Financial Protection & Innovation
financial services
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1293 charsCalifornia Department of Financial Protection and Innovation Issues Consent Order Against Nano Banc
On March 6, 2026, the California Department of Financial Protection and Innovation (DFPI) issued a Consent Order against Nano Banc (License #2332), marking the most recent regulatory action against the entity.
Nano Banc has been subject to multiple enforcement actions by the DFPI since February 24, 2021, when the initial action was taken. The regulatory history includes a Cease and Desist Order issued on December 15, 2021, followed by an additional Order on May 2, 2022. On April 10, 2025, the DFPI issued a Termination of Order, which was subsequently followed by the March 2026 Consent Order. The sequence of enforcement actions indicates ongoing regulatory oversight and compliance concerns regarding Nano Banc's operations in California.
The Consent Order represents a formal agreement between the DFPI and Nano Banc regarding regulatory compliance matters. Interested parties seeking additional information about this enforcement action or Nano Banc's regulatory status can contact the DFPI's Consumer Services Office at 1-866-275-2677 or access the full company profile and associated documentation through the DFPI's official records.
**REFERENCES:**
California Department of Financial Protection and Innovation. Actions and Orders: Nano Banc. Available at: https://dfpi.ca.gov/
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2281 charsCalifornia Department of Financial Protection and Innovation Issues Consent Order Against Nano Banc
On March 6, 2026, the California Department of Financial Protection and Innovation (DFPI) issued a consent order (order) against Nano Banc, marking the most recent regulatory action against the entity. The order follows a waiver by Nano Banc's board of directors, which allows the Commissioner to bypass formal hearings to address urgent safety and soundness concerns. The enforcement action mandates remedial measures across several key operational and financial metrics to restore the institution to a stable condition.
The regulatory basis for this action stems from the DFPI Commissioner's authority to intervene when a bank is conducted in an unsafe or unsound manner. Although Nano Banc consented to the order without admitting or denying the findings, the DFPI's mandate highlight critical failures in capital adequacy, liquidity stress testing, and credit risk management. Specifically, the DFPI identified that Nano Banc's capital was insufficient for its risk profile, and it maintained hazardous concentrations in commercial real estate and unsecured loans. Furthermore, the bank was found to have lacked a management team qualified to oversee operations in a safe and sound manner.
The DFPI ordered Nano Banc to do the following:
Capital Adequacy and Exit Strategies: Within 120 days, Nano Banc must increase its tangible shareholders' equity ratio to at least 9.5 percent. If it fails to meet this threshold it must enter a definitive agreement to merge, sell, or voluntarily liquidate.
Liquidity Stress Testing: Nano bank is required to conduct a comprehensive review of liquidity stress testing assumptions within 60 days, ensuring they are supported by peer benchmarks and expert judgment.
Funding concentration risk: Within 90 days, Nano Banc must submit a plan to reduce reliance on wholesale non-core deposits and establish clear limits for individual deposit verticals.
Management Overhaul: Nano Banc must retain executive management acceptable to the Commissioner. All changes to the board or executive officers require a 30 days notice and a regulatory "non-objection".
Operational Freezes: Nano Banc is strictly prohibited from declaring dividends, launching new lines of business, or opening new branches without prior written approval from the DFPI.