District Circular Letters
April 19, 2013
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SR 13-7 / CA 13-4 State Member Bank Branching Considerations
On April 5, 2013, the Federal Reserve issued SR 13-7/CA 13-4, State Member Bank Branching Considerations. This letter clarifies the Federal Reserve’s policy concerning the application process for a state member bank in less-than-satisfactory condition for the establishment of a de novo branch. The SR letter describes the circumstances under which a state member bank may be permitted to branch on a de novo basis if it or its parent bank holding company (collectively, a ”banking organization”) is in less-thansatisfactory condition. While the letter explains the criteria for the establishment of a de novo branch, a banking organization’s proposal must be consistent with general safety-and-soundness standards and adhere to the Federal Reserve’s application process.
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