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Federal R eserve Bank
OF DALLAS
R O B E R T D. M c T E E R , J R .
an d

ch ief^ e x e c u t^ v e

o ffic e r

A Pril 30, 1992

DALLAS, TEXAS 75222

N o t i c e 92- 37
TO:

The Chief Executive Officer of each
member bank and others concerned in
the Eleventh Federal Reserve District
SUBJECT
I n t e r i m R u l e and R e q u e s t for C o m m e n t s on A m e n d m e n t s to
R e g u l a t i o n Y (Bank H o l d i n g C o m p a n i e s
and C h a n g e in B a n k C o n tr o l)
DETAILS

The Federal Reserve Board has issued an interim rule to carry out
provisions of the Federal Deposit Insurance Corporation Improvement Act of
1991 that affect bank holding companies and foreign banking organizations with
operations in the United States.
The interim rule amends Regulation Y and is effective immediately.
The interim rule will be reviewed by the Board at a later date after the
receipt of public comment.
The interim rule specifies additional factors that
the Federal Reserve must consider in acting on applications submitted under
the Banking Holding Company Act to acquire a bank.
The Board must receive comments by
be addressed to William W. Wiles, Secretary,
Reserve System, 20th Street and Constitution
20551. All comments should refer to Docket

June 15, 1992. Comments should
Board of Governors of the Federal
Avenue, N.W., Washington, D.C.
No. R-0755.

ATTACHMENT
A copy of the Bo a r d ’s notice as it appears on pages 13002-03, Vol.
57, No. 73, of the Federal Register dated April 15, 1992, is attached.
MORE INFORMATION
For more information, please contact Michael Johnson at (214)
744-7306.
For additional copies of this B a n k ’s notice, please contact the
Public Affairs Department at (214) 651-6289.
Sincerely yours,

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal Reserve Bank of Dallas:
Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston Branch Intrastate (800) 392-4162,
Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

13002

Federal Register / Vol. 57, No. 73 / W ednesday, April 15, 1992 / Rules and Regulations
12 CFR Part 225
[Docket No. R-0755]
Regulation Y—Review Criteria for
Bank Holding Company Applications

Board of Governors of the
Federal Reserve System.
ACTION: Interim rule with request for
comments.

AGENCY:

SUMMARY: The Board is publishing for
comment an amendment to its
Regulation Y, which governs bank
holding companies and foreign banking
organizations with operations in the
United States, to implement certain
regulatory improvements contained in
the Federal Deposit Insurance
Corporation Improvement Act of 1991.
The proposed amendment specifies
additional factors that the Federal
Reserve System must consider in acting
on applications submitted under the
Bank Holding Company Act to acquire a
bank. The intended effect of the
amendment is to conform the Board’s
Regulations to the statutory changes,
DATES: Effective Date. This interim rale
is effective April 15,1992. Comment
Date. Comments should be received on
or before June 15,1992.
ADDRESSES: Comments, which should
refer to Docket No. R-0755, may be
mailed to the Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue. NW., Washington,
DC 20551, to the attention of Mr,
William W. Wiles, Secretary. Comments
addressed to the attention of Mr. Wiles
may be delivered to the Board’s mail
room between 8:45 a.m. and 5:15 p.m.,
and to the security control room outside
of those hours. Both the mail room and
the security control room are accessible
from the courtyard entrance on 20th
Street between Constitution Avenue and
C Street, NW. Comments may be
inspected in room B-1122 between 9 a.m.
and 5 p.m., except as provided in § 261.8
of the Board’s Rules Regarding the
Availability of Information, 12 CFR
261.8.
FOR FURTHER INFORMATION CONTACT:

Scott G. Alvarez, Associate General
Counsel (202-452-3583), or Brian E.J
Lam, Attorney (202-452-2067), Legal
Division; or Sidney M. Sussan, Assistant
Director (202-452-2638), Division of
Banking Supervision and Regulation. For
the hearing impaired only.
Telecommunications Device for the
Deaf, Dorothea Thompson (202-4523544).
SUPPLEMENTARY INFORMATION: The
Board is implementing an interim rule
and requesting public comment on
revisions to its Regulation Y concerning

the factors the Board must consider in
reviewing and acting on applications by
bank holding companies to acquire
banks under section 3 of the Bank
Holding Company Act. The changes are
required by amendments made to the
Bank Holding Company Act ("BHC
Act”) by the Federal Deposit Insurance
Corporation Improvement Act of 1991
("FDICI Act”), and conform the criteria
set forth in the Board's regulations for
evaluating such bank applications to the
statutory requirements set forth in these
amendments. Sections 202(d) and 210 of
the FDICI Act, Pub. L. 102-242,105 S tat
2237, 2290, 2298.
The amendments enacted by the
FDICI Act require the Board to
disapprove any application under
section 3 of the BHC Act if:
(A) The company fails to provide the
Board with adequate assurances that
the company will make available to the
Board such information on the
operations or activities of the company,
and any affiliate of the company, as the
Board determines to be appropriate to
determine and enforce compliance with
this Act; or
(B) In the case of an application
involving a foreign bank, the foreign
bank is not subject to comprehensive
supervision or regulation on a
consolidated basis by the appropriate
authorities in the bank’s home country,
Section 202(d) of the FDICI Act, Pub. L.
102-242,105 Stat. 2237, 2290.
These amendments also provide that
the Board's consideration of the
managerial resources of a company or
bank "shall include consideration of the
competence, experience, and integrity of
the officers, directors, and principal
shareholders of the company or bank.’*
Section 210 of the FDICI Act, Pub, L. 102*
242,105 Stat. 2237, 2298.
To implement these statutory
provisions, the Board proposes to amend
the list of factors contained in
Regulation Y that the Board considers in
reviewing bank acquisition proposals.
List of Subjects in 12 CFR Part 225
Administrative practice and
procedure, Banks, banking. Federal
Reserve System, Holding companies,
Reporting and recordkeoping
requirements. Securities.
For the reasons set forth in the
preamble, and pursuant to the Board’s
authority under section 5(b) of the Bank
Holding Company Act of 1956,12 tt.S.C
1844(b), the Board is amending 12 CFR
part 225 to read as follows;

Federal Register / Vol. 57, No. 73 / W ednesday, April 15, 1992 / Rules and Regulations
PART 225—BANK HOLDING
COMPANIES AND CHANGE IN BANK
CONTROL

1. The authority for part 225 continues
to read as follows:
A uthority: 12 U.S.C. 1817(j)(13), 1818i,
1831(i), 1843(c)(8), 1844(b), 3108, 3108, 3907,
3909, 3310, and 3331-3351.

2. Section 225.13 is amended by
revising the introductory text to
paragraph (a) and paragraph (b)(2), and
by adding paragraphs (b)(4) and (b)(5),
to read as follows:
§ 225.13 Factors considered in acting on
bank applications.

(a) Prohibited anticompetitive
transactions. As specified in section 3(c)
of the BHC Act, the Board may not
approve any application under this
subpart if:
*

*

*

*

«

(b) * * *
(2) Managerial Resources. The
competence, experience, and integrity of
the officers, directors, and principal
shareholders of the applicant, and of the
banks and bank holding companies
concerned; their record of compliance
with laws and regulations; and the
record of the applicant and its affiliates
of fulfilling any commitments to, and
any conditions imposed by, the Board in
connection with prior applications.
*

*

*

#

•

(4) Availability of appropriate
information. Whether the applicant has
provided the Board with adequate
assurances that it will make available
such information on its operations or
activities, and the operations or
activities of any affiliate of the
applicant that the Board deems
appropriate to determine and enforce
compliance with the BHC Act and other
applicable federal banking statutes, and
any regulations thereunder.
(5) Comprehensive supervision of
foreign banks. Whether, in the case of
an application involving a foreign bank,
the foreign bank is subject to
comprehensive supervision or regulation
on a consolidated basis by the
appropriate authorities in its home
country, as provided in $ 211.25(c)(1) of
the Board’s Regulation K (12 CFR
211.25(c)(1)).
*

*

*

*

*

By order of the Board of Governors of the
Federal Reserve System, A pril 9,1992.
W illiam W . W iles,

Secretary of the Board.
[FR Doc. 92-8860 Filed 4-14-92; 8:45 am]
BILLING CODE 6210-01-T

13003


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102