In 2002, Hawaii had nine insured banks, including four state-chartered banks, one foreign bank branch, three credit unions, and one interstate branch, with combined assets of $29.8 billion. Between 1991 and 2002, the number of separately-chartered insured banks decreased from 27 to 9, due to mergers. Hawaii's financial system is protected by the Department of Commerce and Consumer Affairs, with the Division of Financial Institutions.
During 2001 and 2002, the state's insured institutions improved their performance, due in part to increased net interest margins (NIMs) (the difference between the lower rates offered to savers and the higher rates charged on loans) coming from declining interest rates.