To Prohibit Interstate Branches Primarily for Deposit Production; To Provide Guidelines for Meeting Credit Needs of Communities Served
Comments Due May 2
To All State Member Banks, and Branches and Agencies
of Foreign Banks, in the Second Federal Reserve District:
The following is from a statement issued by the Board of Governors of the Federal Reserve System:
The Federal Reserve Board, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, has requested comment on a proposal to adopt uniform regulations to implement section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (Interstate Act).
Comment is requested by May 2, 1997.
As required by section 109, the proposed rule would prohibit any bank from establishing or acquiring a branch or branches outside of its home state under the Interstate Act primarily for the purpose of deposit production, and would provide guidelines for determining whether such bank is reasonably helping to meet credit needs of the communities served by the interstate branches.
The text of the interagency notice printed in the Federal Register of March 17 is available as a (pdf) file. Comments on the proposal should be submitted by May 2, 1997, and may be sent to the Board of Governors, as specified in the notice.