District Circular Letters
June 17, 1998
BANKING SUPERVISION AND REGULATION:
EXEMPTIONS OF CERTAIN TRANSACTIONS BETWEEN
DEPOSITORY INSTITUTIONS AND THEIR AFFILIATES
UNDER SECTION 23A OF THE FEDERAL RESERVE ACT
INTERAGENCY POLICY STATEMENT ON BRANCH NAMES
To All Bank Holding Companies,
State Member Banks, and Others Concerned
in the Twelfth Federal Reserve District
Proposed Interpretation Regarding Transactions Between Institutions
and Affiliates (Docket
R-1015)
The Federal Reserve Board has requested public comment on an interpretation
expanding the ability of an insured depository institution to purchase
securities from its section 20 affiliate outside the quantitative limits
of section 23A of the Federal Reserve Act if the assets are actively traded
at a price that can be verified from independent and reliable resources.
Comment is requested by July 21, 1998.
Proposed Rules Regarding Transactions Between Institutions and
Affiliates (Docket
R-1016)
The Board has requested public comment on two proposed rules exempting
from the quantitative and collateral requirements of section 23A certain
loans made by an insured depository institution to customers who use the
proceeds to purchase securities through or from the institution's registered
broker-dealer affiliate.
Comment is requested by July 21, 1998.
Interagency Statement on Branch Names
The Board of Governors of the Federal Reserve System and the other federal
banking agencies have issued the enclosed interagency
policy statement concerning the practice of insured depository institutions
operating branches under different trade names. The agencies are concerned
that depositors believing such facilities are operated by separate institutions
may inadvertently exceed FDIC insurance limits by depositing excess amounts
in accounts in different branches of the same institution. The agencies
believe it is important that customers understand fully the scope of FDIC
deposit insurance coverage in these circumstances.
The interagency policy statement emphasizes that an insured depository
institution that intends to use different names for various branches or
other facilities of the same institution should take reasonable steps
to ensure that customers will not become confused and believe
- that its facilities or branches are separate institutions, or
- that deposits in different facilities are separately insured.
The policy statement describes various steps that should be taken to
avoid confusion regarding federal deposit insurance coverage.
The interagency policy becomes effective July 1, 1998.
Copies
Copies of the Board's notices (Docket
R-1015 and Docket
R-1016) are available from our Corporate Services Department.
To request copies to be sent via mail, please call (415) 974-2748.
To request copies to be sent via fax, please call (415) 974-3333,
and specify document numbers 4211 and 4212,
respectively.
For Additional Information
For additional information regarding these matters, please contact our
Banking Supervision and Regulation Department, at (415) 974-3007.
FEDERAL RESERVE BANK OF SAN FRANCISCO
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