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Home > News & Events > Inactive Financial Institution Letters
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Inactive Financial Institution Letters |
FIL-18-97
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The Economic Growth and Regulatory Paperwork Reduction Act of 1996
amended Section 32 of the Federal Deposit Insurance Act, which
requires advance notification to regulators when appointing Directors
and officers in certain institutions.
The amendment eliminates the advance notice requirement for
institutions that have been in existence less than two years, and
those that have undergone a change of control within the past two
years. Undercapitalized institutions and institutions in "troubled
condition" (as defined in Part 303.14 of the FDIC's Rules and
Regulations) must continue to provide at least 30 days written
notice
to their primary federal regulator of any pending appointments to
the
institution's board of
Directors or senior executive staff. In
addition, the amendment grants the federal agencies the
authority to
require prior notification and approval in situations where the
agencies believe that such notification is appropriate.
This statutory provision took effect on September 30,
1996. Although
Part 303.14 of the FDIC's Rules and Regulations has not
yet been
amended to incorporate this statutory change,
institutions that are
no longer covered by Section 32 may stop providing the
notifications.
Please share this information with the
appropriate personnel in your
institution. For further information, please
contact your Division of
Supervision Regional Office.
Distribution: FDIC-Supervised Banks
(Commercial and Savings)
Note: Paper copies of FDIC
financial institution
letters may be
obtained through the FDIC's
Public Information Center,
801 17th
Street, N.W., Room 100,
Washington, D.C. 20434
((703) 562-2200 or
800-276-6003).
Congress
created the
Federal
Deposit
Insurance
Corporation
in 1933
to maintain
public
confidence
in the
nation's
banking
system. The
FDIC insures
deposits at
the nation's
12,000 banks
and savings
associations
and it
promotes the
safety and
soundness of
these
institutions
by
identifying,
monitoring
and
addressing
risks to
which they
are exposed.
FDIC
Press
Releases,
Financial
Institution
Letters,
the
Quarterly
Banking
Profile
and
other
important
information
is
available
on
the
Federal
Deposit
Insurance
Corporation
World
Wide
Web
home
page
at
.
Paper copies of press releases and other documents may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20429 ((703) 562-2200). |
Last Updated 11/13/2018 | communications@fdic.gov |