The Federal Reserve Board, along with the Office of the Comptroller
of the Currency and the Federal Deposit Insurance Corporation, today issued
a final rule that adopts uniform regulations implementing section 109 of the
Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (Interstate
The rule is effective October 10, 1997.
As required by section 109, the rule prohibits any bank from establishing
or acquiring a branch or branches outside of its home state under the
Interstate Act primarily for the purpose of deposit production. The rule also
provides guidelines for determining whether such a bank is reasonably helping
to meet the credit needs of the communities served by interstate branches.