FDIC APPLICATIONS: The FDIC is expected to propose in late September a streamlining of the application process for a broad range of activities such as branch openings and mergers by healthy state-chartered banks and thrifts.

ELECTRONIC BENEFITS: A Treasury proposal is tentatively scheduled for today on how the government will deliver Social Security and other federal benefits electronically to the 10 million recipients without bank accounts. A 1996 law requires the federal government to send all payments except tax refunds electronically by Jan. 1, 1999.

FOREIGN BANKS: The Fed has not adopted proposed changes in Regulation K, which are now more than nine months late. The rule governs the overseas operations of domestic banks and the U.S. operations of foreign banks; the changes are not expected to be adopted before Congress adjourns in October.

The proposal would relax limits on the amount of income foreign banks may earn outside the United States from insurance and securities activities. It also would eliminate scores of duplicative filing requirements and make it easier for foreign banks to expand their operations here. Observers believe the Fed is holding up action until Congress completes work on financial modernization legislation.

MONEY LAUNDERING II: The often-delayed know-your-customer rules have been pushed back again. Agencies now are hoping to release a proposal by the end of the year. The regulation is expected to require banks to take specific steps to verify the identity of each customer. Regulators have been working on draft rules since May 1996.

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