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Inactive Financial Institution Letters

Branch Closings

June 29, 1999


SUBJECT: Interagency Policy Statement on Branch Closings

The FDIC Board of Directors has amended its policy statement on branch closings. The changes incorporate amendments to the Federal Deposit Insurance Act mandated by the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 and the Economic Growth and Regulatory Paperwork Reduction Act of 1996. The new policy statement is effective June 29, 1999.

The attached policy statement now addresses proposed closings by interstate banks of branches located in low- or moderate-income areas. Under the amended policy, proposed closings of interstate branches are covered by a new customer notice procedure that provides the appropriate banking regulator's address and states that comments about the proposed branch closing should be directed to the appropriate federal banking agency at the address provided. The procedure provides that the agency may convene a meeting of community leaders and other interested persons to discuss a proposed closing if someone from the affected area voices "non-frivolous concerns" in his or her written comments.

The changes mandated by the Economic Growth and Regulatory Paperwork Reduction Act of 1996 clarify that:

  • automated teller machines are not branches for purposes of this policy statement;
  • relocations and consolidations within the same neighborhood are not branch closings; and
  • closings in connection with emergency acquisitions or assistance by the FDIC are not covered by the policy statement.

The policy statement is being issued jointly with the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision.

For more information, please contact Curtis L. Vaughn, Examination Specialist in the Division of Supervision (202-898-6759), or Gladys Gallagher, Counsel in the Legal Division (202-898-3833).


Stephen M. Cross James L. Sexton
Division of Compliance and Consumer Affairs
Division of Supervision

Attachment: Federal Register, June 29, 1999, Vol. 64, No. 124, pages 34844-34847 HTML PDF
(36 Kb - PDF help or hard copy)

Distribution: FDIC-Supervised Banks (Commercial and Savings)

NOTE: Paper copies of FDIC financial institutions letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).

Last Updated 11/13/2018

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