“Significant deficiencies” in the financial condition of a San Francisco bank holding company, which owns a Minnesota bank, are cited in a cease-and-desist enforcement action taken by the Federal Reserve, announced Friday.
According to the Fed, it took the action against Jiko Holding Group, Inc., of San Francisco, which in turn owns Mid-Central National Bank, Wadena, Minn., and “various non-bank subsidiaries that develop and service technology platforms, and provide broker/dealer services.”
The Fed did not specify the deficiencies for Jiko. But the agency did say that the action stems from an October 2023 supervisory inspection of Jiko by the Federal Reserve Bank of San Francisco (and “more recent communications”). The Fed said that inspection and communications “identified significant deficiencies in the financial condition of the holding company, including capital planning, earnings, strategic planning, cash flow, and liquidity.”
The Fed said Jiko has been directed to take several actions (typical of such enforcement actions), including that Jiko serve as a “source of strength” for the bank, address board oversight of the holding company, adopt a strategic plan, submit an “enhanced liquidity risk management program,” develop and present a capital plan, and more.
Federal Reserve Board issues enforcement action with Jiko Group, Inc.