Pursuant to the Financial Services Law ("FSL"), the New York State Banking Department ("Banking Department") and the New York State Insurance Department were consolidated on October 3, 2011 into the Department of Financial Services ("department"). Prior to the consolidation, assessments of institutions subject to the Banking Law ("BL") were governed by section 17 of the BL. Effective October 3, 2011, assessments are governed by section 206 of the FSL, provided that section 17 of the BL continues to apply to assessments for the fiscal year commencing on April 1, 2011. Both section 17 of the BL and section 206 of the FSL provide that all expenses (including, but not limited to, compensation, lease costs and other overhead costs) of the department attributable to institutions subject to the BL are to be charged to, and paid by, such regulated institutions. These institutions ("regulated entities") are now regulated by the banking division of the department. Under both section 17 of the BL and section 206 of the FSL, the superintendent is authorized to assess regulated entities for its total costs in such proportions as the superintendent shall deem just and reasonable. The Banking Department has historically funded itself entirely from industry assessments of regulated entities. These assessments have covered all direct and indirect expenses of the Banking Department, which are activities that relate to the conduct of banking business and the regulatory concerns of the department, including all salary expenses, fringe benefits, rental and other office expenses and all miscellaneous and overhead costs such as human resource operations, legal and technology costs. This regulation sets forth the basis for allocating such expenses among regulated entities and the process for making such assessments.