Full text of Federal Reserve Bank of New York Circulars : 7086. Amendments to Rules Regarding Delegation of Authority

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FED ER AL RESERVE BANK
O F N E W YORK

r Circular No. 7 0 8 6"!
L January 26, 1973 J

Amendments to Rules Regarding Delegation of Authority

T o A ll M em b er Banks, and O thers Concerned,
in the Second Federal R eserve D istrict:

Enclosed is a copy of amendments to section 2 6 5 .2 (f) of the Rules
Regarding Delegation of Authority of the Board of Governors of the
Federal Reserve System. The amendments delegate to the Federal
Reserve Banks authority (a ) to approve applications by bank holding
companies to acquire additional shares on a pro rata basis in nonsub­
sidiary, as well as subsidiary, banks; and (b ) to approve certain appli­
cations for membership in the Federal Reserve System, even if not in­
cidental to applications to become one-bank holding companies. They
are effective with respect to applications received by the Reserve Banks
after January 15, 1973.




Additional copies of the enclosure will be furnished upon request.
A

lfred

H

ayes,

President.

Board of Governors of the Federal Reserve System
RULES R EG ARD IN G D ELEG ATION OF A U T H O R IT Y

AM ENDM ENTS
Effective with respect to applications re­
ceived by the Reserve Banks after January 15,
1973, subparagraph (23) of §265.2 (f) is
amended, and subparagraph (26) thereof is
added, to read as follows:
SECTION 265.2— SPECIFIC FU N C TIO N S
DELEGATED T O BOARD E M PLO Y E E S
AN D FE D E R A L R E SE R V E BAN K S
*

*

*

(f) Each Federal Reserve Bank is autho­
rized, as to member banks or other indicated
organizations headquartered in its district or
under subparagraph (25) of this paragraph,
a£ to its officers:
*
*
*
(23) Under the provisions of section
3 ( a ) ( 3 ) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1842), to approve the
acquisition by a bank holding company of addi­
tional shares in a bank that are to be acquired




through exercise of rights received, on a pro
rata basis, by the bank’s shareholders.
*
*
*
(26) Under the provisions of the first para­
graph of Section 9 of the Federal Reserve Act
(12 U.S.C. 325) to approve applications for
membership in the Federal Reserve System if
the Reserve Bank is satisfied with respect to
each of the following criteria:
(i) The financial history and condition of
the applying bank and the general character of
its management;
(ii) The adequacy of its capital structure in
relation to the character and condition of its
assets and to its existing and prospective de­
posit liabilities and other corporate responsi­
bilities ; and its future earnings prospects;
(iii) The convenience and needs of the com­
munity to be served by the bank; and
(iv) Whether its corporate powers are con­
sistent with the purposes of the Federal Re­
serve Act and the Federal Deposit Insurance
Act.

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