Although Congress did not enact comprehensive
banking legislation in 1997, lawmakers approved measures addressing interstate banking for
state-chartered banks and giving federal regulators flexibility in enforcing certain
regulations within disaster areas. Congress also approved Fiscal Year 1998 appropriations
for the FDIC Office of Inspector General (OIG).
The Riegle-Neal Amendments Act of 1997 (Public Law 105-24) was enacted
on July 3, 1997. The Act amends the Federal Deposit Insurance Act to change the law applicable to branches of out-of-state
state-chartered banks. Prior to the Act, host state law applied.
Supervision Examiner Glen Bakken wades in front of his Grand Forks, ND, home after record
flooding in April. The Depository Institutions Disaster Relief Act of 1997 provides
temporary regulatory relief for financial institutions in flooded areas of the Dakotas and
other areas where a major disaster has occurred.
Under the new law, home
state law applies to the extent that federal law preempts host state law for branches of
out-of-state national banks. The Act also clarifies what law governs permissible
activities. A branch of an out-of-state state-chartered bank may conduct in the host state
those activities that are permissible either for a bank chartered in the host state, or
for a branch of an out-of-state national bank.
Depository Institutions Disaster Relief
The Depository Institutions Disaster Relief
Act of 1997 (Public Law 105-18) was enacted as part of an emergency supplemental
appropriations bill on June 12. The
Act provides temporary regulatory relief
for financial institutions in flooded areas of Minnesota and the Dakotas and in other
areas where a major disaster has occurred.
The Act gives to federal financial institution
regulatory agencies greater flexibility to waive or limit the application of the Truth in
Lending Act, the Expedited Funds Availability Act, and certain prompt corrective action
provisions of the Federal Deposit Insurance Act. The authority for the temporary
provisions ends in either 1998 or 1999.
Congress appropriated funds for the activities of the FDIC OIG as part of the Fiscal Year
1998 Departments of Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act of 1998 (Public Law 105-65) enacted October 27,1997. The Act
designates nearly $34.4 million from the Bank Insurance Fund, the Savings Association
Insurance Fund and the FSLIC Resolution Fund for necessary expenses of the OIG in Fiscal