The Federal Deposit Insurance Corp. has made it easier for state nonmember banks to set up automated loan machines.

Automated loan machines are not considered a "domestic branch" under federal law, the agency said in a July 8 letter to Washington lawyer Ross S. Delston. As a result, state-chartered banks that are not members of the Federal Reserve System are not required to file an application with the FDIC to establish these machines. However, state regulators may still require applications for these units.

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