Private banking includes personalized financial services and products that retail banks and other financial institutions offer to high-net-worth individuals (HNWI). These services and products often include:

• investment and portfolio management

• wealth management

• tax services

• will, trust, and estate planning services

• insurance products

• jumbo mortgages

• lines of credit

• bill payment.

Private banking clients often receive discounted or preferred pricing on these services and products.

To be eligible for private banking services and products, retail bank clients are often required to maintain balances in their bank accounts (checking, savings, money market) and investment accounts (IRAs, mutual funds) totaling $150,000 to $250,000 or more.

In California, private banking services are regulated under both state and federal laws. These services cater to high-net-worth individuals by offering a suite of personalized financial products and services, which can include investment and portfolio management, wealth management, tax services, estate planning, insurance products, jumbo mortgages, lines of credit, and bill payment services. Clients typically receive preferred pricing and may need to maintain a certain balance across their accounts to qualify for private banking. California banks offering private banking services must comply with the California Financial Code, which sets forth the regulations for state-chartered banks, as well as federal regulations such as those enforced by the Office of the Comptroller of the Currency (OCC) for national banks, and the Federal Reserve for bank holding companies. Additionally, investment services are subject to the regulations of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Estate planning and trust services must adhere to the California Probate Code. Insurance products are regulated by the California Department of Insurance. It is important for institutions offering private banking services to comply with these regulations to ensure the protection of their clients' assets and the integrity of the financial services provided.