Thrifts would be required to inform federal regulators before offering Internet banking services under a proposal unveiled Wednesday.
The Office of Thrift Supervision intends to add the notification requirement to proposed rules letting federal thrifts conduct any activity electronically that they may offer through traditional means. The agency also said it wants authority to impose additional conditions on the electronic operations of thrifts that have been criticized for supervisory or compliance violations. Comments are due Sept. 14.
Separately, the OTS issued a rule Wednesday that barring thrifts as of Oct. 1 from entering reverse repurchase agreements with nonbank affiliates. The OTS said reverse repos are extensions of credit, and thrifts are prohibited from lending to nonbank affiliates. In a reverse repo, a depository institution buys securities from another party and agrees to sell them back later at a higher price. -Bill McConnell