The
published date refers to the day published in the Federal Register. Final Rules
Foreign
Banks The FDIC amended Part 346 of its regulations governing
the operation of state-licensed U.S. branches of foreign banks. The amendments, required
by Section 107 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994,
are intended to ensure that foreign banks do not receive an unfair competitive advantage
over U.S. banks in domestic retail deposit taking. This final rule amends the regulations
to restrict the amount and types of initial deposits to less than $100,000 that can be
accepted by an uninsured state-licensed branch of a foreign bank.
Approved:
Feb. 6, 1996
Published: Feb. 14, 1996 |
Executive
Benefits The FDIC amended Parts 303 and 359 of its regulations
to prohibit troubled holding companies, banks and thrifts from making golden
parachute payments, with certain exceptions. Golden parachutes typically are large
cash payments to executives who resign just before an institution is closed or sold. The
purpose of this rule is to prevent the improper disposition of an institutions
assets and to protect the safety and soundness of institutions and the federal deposit
insurance funds.
Approved:
Feb. 6, 1996
Published: Feb. 15, 1996 |
Annual Audit and Reporting Requirements The FDIC amended Part 363 of
its regulations to implement various provisions of the Riegle Community Development and
Regulatory Improvement Act of 1994 and otherwise provide relief from audit and reporting
requirements for certain sound and well-managed banks. The purpose of this rule is to
eliminate duplicative reporting requirements, and to streamline and reformat specific
procedures that independent accountants must perform to help regulators determine
compliance with designated laws.
Approved:
Feb. 6, 1996
Published: Feb. 21, 1996 |
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Suspicious
Activity Reports The FDIC amended Part 353 of its regulations on the
reporting of known or suspected criminal and suspicious activities by insured state
nonmember banks. The rule requires the use of the uniform interagency Suspicious Activity
Report (SAR) to report potential violations of federal criminal law as well as suspicious
transactions related to money laundering offenses and violations of the Bank Secrecy Act.
The new SAR substantially reduces the reporting burden of financial institutions by
significantly increasing the reporting thresholds for offenses by non-bank employees.
There also is a $5,000 threshold for reporting suspicious transactions related to money
laundering and violations of the Bank Secrecy Act. Additionally, criminal referrals will
be submitted to the Financial Crimes Enforcement Network of the Department of the Treasury
rather than to multiple federal agencies. The other financial regulatory agencies and the
Department of Treasury issued similar rules.
Approved:
Feb. 6, 1996
Published: Feb. 16, 1996 |
Contractor
Conflicts of Interest The FDIC, with concurrence of the U.S. Office of
Government Ethics, amended Part 366 of its regulations by adopting an interim rule
governing contractor conflicts of interest. The interim rule implements provisions of the
Resolution Trust Corporation Completion Act of 1993 requiring the FDIC to prescribe
regulations to ensure that contractors meet minimum standards. The rules also prohibit
contracts with certain entities.
Approved:
Feb. 27, 1996 Published: Mar. 11, 1996 |
Administrative
Procedures The FDIC amended Part 308 of its regulations regarding
Uniform Rules of Practice and Procedure. The purpose of the final rule is to clarify
certain provisions and to increase the efficiency and fairness of administrative hearings.
The bank and thrift regulatory agencies are required by Section 916 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to develop uniform
rules and procedures for administrative hearings. The areas affected by this rulemaking
are largely administrative, such as service of papers, construction of time limits and
amended pleadings.
Approved:
Apr. 3, 1996
Published: May 6, 1996 |
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Community
Reinvestment Act The FDIC, with the other bank and thrift regulatory
agencies, amended Part 345 of its regulations to make technical corrections to certain
portions of the joint final rule regarding the Community Reinvestment Act (CRA), which
promotes efforts by financial institutions to help meet the credit needs of their entire
communities. This rule corrects a cross reference to Small Business Administration
regulations, which were recently amended. This rule makes no substantive change to the
existing regulation.
Approved:
Apr. 3, 1996
Published: May 10, 1996 |
Standards
for FDIC Employment The FDIC amended Part 336 of its regulations
concerning employee responsibilities and conduct. This rule implements requirements
contained in Section 19 of the Resolution Trust Corporation Completion Act of 1993, which
prohibits certain persons from being employed by or providing services to the FDIC.
Approved:
May 14, 1996
Published: June 6, 1996 |
Agricultural
Loan Loss Amortization The FDIC, as part of its review of all rules and
policy statements, removed its regulation governing agricultural loan loss amortization.
This action is needed to eliminate the regulation when it becomes obsolete on January
1,1999.
Approved:
June 17, 1996
Published: July 1, 1996 |
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Securities
Purchases by Family Members of FDIC Employees The FDIC, with concurrence of the U.S. Office
of Government Ethics, amended its standards for employee conduct (5 CFR Part 3201) to
allow employees spouses and minor children to purchase otherwise prohibited
securities when they are acquired as part of compensation packages in connection with
employment. The amendment was made retroactive to May 25, 1995.
Approved:
July 1, 1996
Published: July 9, 1996 |
Public
Observation of Meetings The FDIC made technical amendments to Part 311 of its
regulations regarding public observation of meetings of its Board of Directors.
Approved:
July 16, 1996
Published: July 24, 1996 |
Management
Interlocks The FDIC, together with the other bank and thrift
regulatory agencies, amended Part 348 of its regulations regarding management interlocks.
With certain exceptions, these rules prohibit bank management officials from
simultaneously serving in a similar capacity with other financial institutions. The
revisions implement statutory changes that were mandated by the Riegle Community
Development and Regulatory Improvement Act of 1994 (CDRI), and also streamline and clarify
the rules. CDRI removed the agencies broad authority to exempt otherwise
impermissible interlocks and replaced it with the authority to exempt interlocks under
more narrow circumstances. The Act also required a depository institution with a
grandfathered interlock to apply for an extension of the grandfathered period
if the organization wanted to keep the interlock in place.
Approved:
July 16, 1996
Published: Aug. 2, 1996 |
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Privacy
Act The FDIC made
minor and technical amendments to its Privacy Act regulations (Part 310), which relate to
the collection, maintenance, use and dissemination of personal information by government
agencies. The amendments delete outmoded terms and otherwise update and clarify the
regulations.
Approved:
Aug. 13, 1996
Published: Aug. 23, 1996 |
Safety
and Soundness The
FDIC, together with the other bank and thrift regulatory agencies, amended Part 364 of its
regulations concerning standards for safety and soundness. The guidelines were amended to
include asset quality and earnings standards, and were adopted pursuant to the Federal
Deposit Insurance Act as amended by the CDRI. The guidelines as amended gave the agencies
greater flexibility to use more comprehensive qualitative standards, rather than rigid
quantitative standards.
Approved:
Aug. 13, 1996
Published: Aug. 27, 1996
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Loans
in Areas Having Special Flood Hazards The FDIC, together with the other bank and
thrift regulatory agencies, the Farm Credit Administration and the National Credit Union
Administration, amended Part 339 of its regulations to expand requirements for loans in
areas having special flood hazards. This final rule establishes new escrow requirements
for flood insurance premiums, provides authority for lenders to purchase flood insurance
on behalf of a borrower who would not purchase the policy when requested (with the cost
passed along to the borrower), and makes other changes to implement the National Flood
Insurance Reform Act of 1994.
Approved:
Aug. 13, 1996
Published: Aug. 29, 1996 |
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Market
Risk The FDIC,
together with the Federal Reserve Board and the Office of the Comptroller of the Currency,
amended Part 325 of its regulations regarding risk-based capital requirements to
incorporate a new measure for market risk. The new measurement covers debt and equity
positions in an institutions trading account and foreign exchange and commodity
positions wherever located. The effect of the final rule is that any bank or bank holding
company regulated by the agencies with significant exposure to market risk must measure
that risk using its own internal value-at-risk model, subject to parameters
contained in the rule, and hold a commensurate amount of capital.
Approved:
Aug. 13, 1996
Published: Sept. 6, 1996 |
Applications
Regarding Bank Clearing Agencies The FDIC, as part of its regulatory relief
efforts, deleted its rules pertaining to applications for a stay or review of actions of
bank clearing agencies (Part 342) and replaced them with new, more concise regulations
(Part 308). The changes are intended to streamline the FDICs regulations while
main-taining uniformity among the other banking agencies and the Securities and Exchange
Commission.
Approved:
Aug. 13, 1996
Published: Sept. 13, 1996 |
Employee
Disclosure Requirements The FDIC, with the concurrence of the U.S. Office of Government Ethics (OGE),
removed an interim supplemental financial disclosure regulation for FDIC employees. The
OGE determined that agencies obtaining its written approval for supplemental financial
disclosure forms are not required to have separate regulations.
Approved:
Sept. 10, 1996
Published: Sept. 30, 1996 |
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SAIF
Assessments The FDIC
issued a final rule imposing a special assessment on institutions that pay assessments to
the Savings Association Insurance Fund (SAIF), as required by the Deposit Insurance Funds
Act of 1996. That Act requires that the assessment, which was calculated to be 65.7 cents
for every $100 of deposits, is to be applied against SAIF-assessable deposits held as of
March 31, 1995. This final rule provides for certain discounts and exemptions related to
the special assessment, and for the FDIC to establish guidelines for identifying
institutions classified as weak and thereby exempt from the special
assessment. The rule also adjusts the base for computing the regular semiannual
assessments paid by certain institutions, in accordance with the law.
Approved:
Oct. 8, 1996
Published: Oct. 16, 1996 |
Civil
Money Penalty The
FDIC, as required by the Debt Collection Improvement Act of 1996, amended Part 308 of its
rules and regulations to increase civil money penalties by the rate of inflation using a
formula prescribed by the law. Any increase in a penalty will apply only to violations
that occur after November 12, 1996.
Approved:
Oct. 29, 1996
Published: Nov. 12, 1996 |
Assessments
for "Oakar" Institutions The FDIC amended Part 327 of its regulations
governing assessments by adopting provisions that pertain to so-called Oakar institutions:
institutions that belong to one insurance fund but hold deposits that are treated as
insured by the other insurance fund. This rule refines the procedures for determining the
amount of deposits acquired and for attributing the deposits to the Bank Insurance Fund
(BIF) and the SAIF. In addition, the rule eliminates weaknesses in the FDICs
procedures for attributing deposits to the two funds, and for computing the growth of the
amounts.
Approved:
Nov. 26, 1996
Published: Dec. 10, 1996 |
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SAIF
Premium Rates With
the capitalization of the SAIF on September 30, 1996, the FDIC lowered the rates on
assessments paid to the fund and widened the spread of the rates. The changes are intended
to avoid collecting more than needed to maintain the SAIFs capitalization at 1.25
percent of insured deposits, and improve the effectiveness of the risk-based assessment
system.
Approved:
Dec. 11, 1996
Published: Dec. 24, 1996 |
Suspension
and Exclusion of Contracts The FDIC amended Part 367 of its regulations concerning contracts and contractors
pursuant to Section 12 of the Federal Deposit Insurance Act. This rule sets procedures for
the suspension and/or exclusion of contractors who have violated conflicts of interest
regulations or have otherwise acted in an improper manner. The rule also applies to
subcontractors, key employees, management officials and affiliated business entities of
FDIC contractors.
Approved:
Dec. 11, 1996
Published: Dec. 30, 1996 |
Loans
to Examiners The
FDIC amended its regulations concerning standards of ethical conduct to allow bank
examiners to obtain loans from banks in the locations where they work, except for the
location of the field office. Previously, it was necessary for examiners to seek credit
from banks outside their regions.
Approved:
Dec. 11, 1996
Published: Jan. 27, 1997 |
Proposed Rules
Government
Securities Sales The
FDIC, with the Federal Reserve Board and the Office of the Comptroller of the Currency,
issued for public comment a proposed rule to amend Part 368 of its regulations concerning
sales of government securities by bank brokers or dealers. The proposed rule would
establish standards concerning recommendations to customers and the conduct of business.
Approved:
April 4, 1996
Published: April 25, 1996 |
Securities
Disclosures The FDIC
issued for public comment a proposed rule to amend Part 335 of its regulations concerning
securities of nonmember insured banks. The proposal seeks to incorporate through
cross-reference the corresponding regulations of the Securities and Exchange Commission
(SEC). This would ensure that the FDICs regulations remain substantially similar to
the SECs regulations, as required by law.
Approved:
June 17, 1996
Published: June 28, 1996 |
Collateralized
Transactions The
FDIC, together with the other bank and thrift regulatory agencies, issued for public
comment a proposed rule to amend Part 325 of its regulations concerning risk-based capital
for collateralized transactions. The effect of the proposal would be to allow banks, bank
holding companies and savings associations to hold less capital for certain transactions
collateralized by cash or qualifying securities. The proposed rule would implement part of
Section 303 of the CDRI.
Approved:
June 17, 1996
Published: Aug. 16, 1996 |
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Economically
Depressed Regions The
FDIC issued for public comment a proposed rule to amend Part 357 of its regulations that
designates certain economically depressed regions. The proposed change would add guidance
to allow applicants to evaluate their situations before formally applying for assistance.
The proposed rule also would withdraw a previously proposed amendment published in 1992.
Approved:
July 16, 1996
Published: Aug. 6, 1996 |
Activities
and Investments of Insured State Banks The FDIC issued for public comment a proposed
rule to streamline Part 362 of its regulations concerning activities and investments of
insured state banks. Currently, insured state banks are required to file an application
with the FDIC to engage in activities that are not permissible for national banks. The
proposed rule would streamline the approval process for banks meeting certain criteria.
Banks that do not meet the criteria would continue to file under the current rules.
Approved:
Aug. 13, 1996
Published: Aug. 23, 1996 |
Fair
Housing Advertising and Recordkeeping The FDIC issued for public comment a proposed
rule amending Part 338 of its regulations by giving insured state nonmember banks more
flexibility in using fair housing posters and advertising slogans. It also would remove
the FDICs recordkeeping requirements that serve as a substitute monitoring program
permitted by Regulation B of the Federal Reserve Board.
Approved:
Sept. 10, 1996
Published: Sept. 20, 1996 |
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Recordkeeping and Confirmation Requirements for Securities
Transactions The
FDIC proposed an amendment of Part 344 of its regulations concerning recordkeeping and
confirmation requirements for securities transactions. The regulations currently in effect
were issued in 1979, and the types of securities activities occurring on bank premises
have changed significantly. Among other things, the proposed rule would exempt from the
FDIC's recordkeeping and confirmation requirements those cases in which the customer has a
direct contractual agreement with a broker/dealer whose relationship is fully disclosed to
the customer. Also, the proposal would require certain financial institution directors to
report personal investment transactions.
Approved:
Dec. 11, 1996
Published: Dec. 24, 1996 |
Qualification Requirements for Certain Securities Transactions
The FDIC, together
with the Office of the Comptroller of the Currency and the Federal Reserve Board, issued
for public comment a proposed rule to amend Part 342 of its regulations concerning the
sale of securities. The proposed rule would require banks to file a notice with the
appropriate federal banking agency and establish professional qualification requirements
for bank employees that are consistent with those for broker/dealers and registered
representatives under the Securities Exchange Act and the rules of the securities
industrys self-regulatory organizations. The proposed rule would require bank
employees to register with the appropriate banking agency, take and pass a proficiency
examination to become a bank securities representative and meet continuing education
requirements.
Approved:
Dec. 11, 1996
Published: Dec. 30, 1996 |
Cindi
Bonnette of the Division of Supervision, Chairman of an FDIC task force on new banking
technology, with committee member Jay Golter of the Division of Research and Statistics.
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Advance Notice of Proposed
Rulemaking
Simplification
of Deposit Insurance Rules The FDIC asked for public comment on whether and how
its deposit insurance rules (Part 330) should be clarified, simplified or streamlined. If
the Board finds modifications to be warranted, it will propose specific amendments for
further public comment.
Approved:
May 14, 1996
Published: May 22, 1996 |
Joseph H. Neely, shown
here being sworn in as a Board member on January 29, was later tapped by Chairman Helfer
(c) to lead the agency's efforts to reduce regulatory burden. Also shown, at left, are
Board members Fiechter and Hove. |
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