Regulatory Roundup: Recent Actions

FOREIGN BANKING: The Federal Deposit Insurance Corp. approved a rule making it easier for banks it regulates to make foreign investments and open additional foreign branches. Published April 8. Effective May 8.

EQUAL CREDIT: The Fed has revised the model forms for Equal Credit Opportunity Act disclosures. Published April 3. Effective April 30.

SMALL-BANK EXAMS: Bank and thrift regulators adopted an interim rule permitting small, well-managed institutions to be examined every 18 months instead of every year. Published and effective April 2.

LENDING LIMITS: The Office of the Comptroller of the Currency dropped a proposal April 1 that would have let national banks exceed the limits on loans to one borrower. To qualify, an institution would have to prove it would be better off extending the additional credit rather than foreclosing on the collateral. The OCC also clarified when national banks must recalculate individual lending limits. The agency said national banks must base their limits on capital and surplus levels held at the end of the most recent quarter. Published April 1. Effective May 8.

PORTFOLIO MANAGEMENT: The Comptroller's Office issued guidelines March 31 designed to help banks take a comprehensive view of all the loans on their books, rather than simply managing individual loans.

RESERVE REQUIREMENTS: The Fed adopted a lagged reserve system, which means banks have two weeks rather than three days to calculate how much they must keep in reserve. Published March 30. Effective July 30.

SECTION 20: The Fed clarified that section 20 unit brokers who do not work in a bank do not have to orally disclose that investment products are not government-insured every time they talk to a customer. Published and effective March 27.

IRAs: The National Credit Union Administration issued an interim rule allowing federal credit unions to act as trustees or custodians on Education IRAs and Roth IRAs. Published and effective March 24.

ELECTRONIC DISCLOSURE: The Fed gave banks permission to deliver account statements and other mandatory disclosures electronically, provided the consumer agrees. Published March 25. Effective March 20.

YEAR-2000: The Exam Council on March 17 issued advisory letters telling bankers to make sure vendors and borrowers are addressing their own year- 2000 problems.

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