Under new government rules, federal thrifts may lend twice as much to commercial borrowers.
A federally chartered thrift now may lend up to 20% of its assets to commercial borrowers. However, half of those loans must be made to small businesses, which the Office of Thrift Supervision defined as business loans of $1 million or less.
The new rules also allow all education, small-business, and credit card loans to count toward satisfying the qualified thrift lender test.
The new OTS rules, implementing a law enacted last September, became effective April 3. They finalize interim rules released on Nov. 27.
In a change from the interim rules, the OTS decided to use the definition of credit card in the Federal Reserve's Truth-in-Lending regulations.
The OTS rule also permits federal thrifts, their holding companies, and affiliates to offer discounts to customers. Finally, the OTS noted it no longer examines bank holding companies with thrift subsidiaries, a job handled by the Fed.
Separately last week, the OTS proposed streamlining its deposit rules by dropping several reporting requirements.
For example, thrifts would no longer be required to provide written receipts when customers make deposits. In addition, the plan would drop several regulations that have been duplicated by Truth-in-Savings rules.
The OTS will accept public comment on the plan until mid-June.
The Office of the Comptroller of the Currency has updated its handbook outlining the responsibilities of national bank directors.
The 144-page booklet, "The Director's Book: The Role of a National Bank Director," incorporates several court cases and changes in federal law that have occurred since it was first printed in 1987.
The booklet also lists directors' responsibilities and explains the board's role in formulating bank policy and overseeing the operations of the bank.
Ten copies were sent last week to each national bank. For additional copies, send a written request and $10 to the OCC, P.O. Box 70004, Chicago, Ill. 60673-0004.
