The Federal Deposit Insurance Corporation (FDIC) has published
its semiannual agenda of regulations in the Federal Register
to inform the public of the Corporation’s regulatory actions
and encourage participation in the rulemaking process.
Many of the actions are the result of the FDIC Board’s
ongoing efforts to reduce the regulatory burden on banks,
simplify rules, improve efficiency and comply with the Riegle
Community Development and Regulatory Improvement Act of
The agenda contains 22 regulatory actions. Four actions
have been completed and the rest are in various stages of
the rulemaking process.
Proposed Regulations Withdrawn
In March 1999, the Board approved a joint action to
withdraw the "Know Your Customer" proposed rule.
The financial institution regulatory agencies received
an unprecedented number of comments on the proposal from
the public, banking organizations, industry trade associations
and members of Congress. Most of the comments reflected
public concern over the privacy of information that would
be collected and held by financial institutions, and many
addressed the expected burden the proposed rule would
impose on banks and savings associations. (12 CFR 326)
In March 1999, the Board finalized a rule revising
risk-based and leverage capital standards. The joint
rule changes will eliminate inconsistencies in the risk-based
capital treatment of construction loans on presold residential
properties, real estate loans secured by junior liens
on one- to four-family residential real estate and investments
in mutual funds. The final rule will also simplify and
make uniform the agencies’ Tier 1 leverage capital standards.
(12 CFR 325)
The FDIC Board in March 1999 amended deposit insurance
regulations for joint accounts and payable-on-death accounts.
The final rule simplifies the deposit insurance regulations
for joint accounts by replacing the current two-step process
with a simple one-step rule. For payable-on-death accounts,
the final rule expands the list of qualifying beneficiaries
to include the owner’s parents and siblings. (12 CFR 330)
The Board in December 1998 voted to revise the FDIC’s
regulations governing the activities and investments of
insured state banks and savings associations, and consolidate
those regulations into a single section, Part 362. The
Board also approved updating and incorporating into Part
362 portions of the FDIC’s regulations governing the securities
activities of subsidiaries and affiliates of insured state
nonmember banks. The revised rule provides the framework
for which certain state-chartered banks or their majority-owned
subsidiaries may engage in activities that are not permissible
for national banks or their subsidiaries. (12 CFR 362,
12 CFR 337, 12 CFR 303)
is a copy of the Semiannual Regulatory Agenda that appeared
in the April 26, 1999, Federal Register, which
contains all 22 final or planned rule changes.
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Congress created the Federal
Deposit Insurance Corporation in 1933 to restore public
confidence in the nation's banking system. The FDIC insures
deposits at the nation's 10,461 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 and other information
are available on the Internet via the World Wide
Web at www.fdic.gov and may also be obtained through the FDIC's Public Information Center
(800-276-6003 or (703) 562-2200).