[Federal Register Volume 62, Number 177 (Friday, September 12, 1997)]
[Proposed Rules]
[Page 48025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-23880]


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DATES: Proposed amendment to part 362 is withdrawn on September 12, 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