FDIC Federal Register Citations

[Federal Register: September 12, 1997 (Volume 62, Number 177)]

[Proposed Rules]

[Page 48025]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr12se97-17]

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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 362

RIN 3064-AB75

Activities and Investments of Insured State Banks

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Proposed rule; withdrawal.

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SUMMARY: As part of the FDIC's systematic review of its regulations and

written policies under section 303(a) of the Riegle Community

Development and Regulatory Improvement Act of 1994 (CDRI), the FDIC is

withdrawing its proposed rule published August 23, 1996, in the Federal

Register at 61 FR 43486 to amend its regulations governing the

activities and investments of insured state banks. The FDIC has decided

to withdraw this proposal to amend the regulation and to propose a

comprehensive restructuring of the regulation. The new proposal is

published elsewhere in today's Federal Register.

DATES: Proposed amendment to part 362 is withdrawn on September 12,

1997.

FOR FURTHER INFORMATION CONTACT: Curtis Vaughn, Examination Specialist,

(202) 898-6759 or John Jilovec, Examination Specialist (202) 898-8958,

Division of Supervision, FDIC 550 17th Street, N.W., Washington, D.C.

20429; Linda L. Stamp, Counsel, (202) 898-7310, or Jamey Basham,

Counsel, (202) 898-7265, Legal Division, FDIC, 550 17th Street, N.W.,

Washington, D.C. 20429.

SUPPLEMENTARY INFORMATION:

Background

On August 23, 1996, the FDIC published for comment a proposal (61

FR 43486) to amend part 362 (12 CFR part 362) of its regulations

governing the activities and investments of insured banks. In general,

subject to certain exceptions, insured state banks are prohibited from

making equity investments of a type that are not permissible for

national banks or engaging as principal in activities of a type not

permissible for national banks. The proposed amendment substituted a

notice for an application in the case of particular real estate, life

insurance and annuity investment activities if banks met specified

requirements. If the FDIC did not object during the notice period, the

bank would have been allowed to proceed with the planned investment

activities.

Proposed Rule Part 362

The FDIC is conducting a systematic review of its regulations and

written policies. Section 303(a) of the CDRI (12 U.S.C. 4803(a))

requires the FDIC to streamline and modify its regulations and written

policies in order to improve efficiency, reduce unnecessary costs, and

eliminate unwarranted constraints on credit availability. Section

303(a) also requires the FDIC to remove inconsistencies and outmoded

and duplicative requirements from its regulations and written policies.

As part of this review, and concurrent with the FDIC's withdrawal

of its proposed rule amending its regulations governing the activities

and investments of insured state banks, the FDIC is proposing a new

rule that completely revises part 362, combining the regulations now

found in Secs. 303.13 and 337.4 of the FDIC's regulations (12 CFR

303.13 and 337.4 ) into part 362 and moving the application and notice

procedures to part 303. The issues dealt with in the August, 1996

proposed amendment are addressed in the proposed overall revision to

part 362.

Withdrawal of the Proposed Rule

In light of the FDIC's complete revision of the regulatory text of

part 362, the FDIC withdraws its proposal published in the Federal

Register on August 23, 1996 at 61 FR 43486.

Dated at Washington, D.C., this 26th day of August, 1997.

By Order of the Board of Directors.

Federal Deposit Insurance Corporation.

Valerie J. Best,

Assistant Executive Secretary.

[FR Doc. 97-23880 Filed 9-11-97; 8:45 am]

BILLING CODE 6714-01-P