The Federal Deposit Insurance Corporation (FDIC) Board of Directors today approved a notice of proposed rulemaking that would amend the agency’s regulations to promote parity between state banks and national banks.
Under the proposed rule, when host state laws do not apply to a national bank, those laws would similarly not apply to an out-of-state state bank providing services in the host state, regardless of whether the state bank has a branch in the host state. Consistent with section 24(j) of the Federal Deposit Insurance Act (FDI Act), the law of the state bank’s chartering state would apply. The proposed rule would not affect the interest rates state banks are permitted to charge with respect to any of their loans, which are governed by section 27 of the FDI Act.
Comments on the rule are due within 60 days after the date of publication in the Federal Register.