Financial Update (July-September 2000)
| he following is a summary of recent Federal Reserve actions or announcements. To obtain a copy of any of these announcements, contact the Atlanta Fed Service Department at 404-498-8474. Please give the docket number or circular letter number (if applicable) when calling to request a copy. The date on the circular letter may not be the same as the Federal Reserve Board announcement.
March 10 The Federal Reserve Board approved an interim rule permitting qualifying state member banks to establish financial subsidiaries and thereby engage in activities that have been determined to be financial in nature or incidental to financial activities. The interim rule establishes a streamlined notice procedure for state member banks that wish to acquire control of or an interest in a financial subsidiary. The interim rule became effective March 11. The press release and notice are available at www.federalreserve.gov/boarddocs/press/BoardActs/2000/200003102.
March 15 The Federal Reserve Board amended its interim rule regarding procedures for bank holding companies and foreign banks that operate a branch, agency or commercial lending company in the United States to elect to be treated as financial holding companies. The amendments became effective March 15. The press release and amendments are available at www.federalreserve.gov/boarddocs/press/BoardActs/2000/20000315.
March 21 The Federal Financial Institutions Examination Council (FFIEC) issued a document, Lessons Learned from the Year 2000 Project, discussing knowledge gained from the preparation for the century date change. The FFIEC urges financial institutions to incorporate these lessons into future project and technology risk management initiatives. The press release and document are available at www.ffiec.gov/pr032100.htm.
March 23 The Federal Reserve Board, the Federal Deposit Insurance Corp. (FDIC) and the Office of the Comptroller of the Currency (OCC) announced the host state loan-to-deposit ratios that the agencies use to determine compliance with Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. The press release and a list of the loan-to-deposit ratios are available at www.federalreserve.gov/boarddocs/press/BoardActs/2000/20000323.
March 24 The Federal Reserve Board revised the official staff commentary for Regulation Z, Truth in Lending. The revision clarifies that payday loans constitute extensions of credit for the purpose of the Truth in Lending Act. The revisions include technical corrections to the regulation and commentary. The revisions were effective March 24, but compliance is optional until Oct. 1, 2000, when compliance becomes mandatory. The press release and notice are available at www.federalreserve.gov/boarddocs/press/BoardActs/2000/20000324.
April 26 The Federal Reserve Board announced that it has reissued A Guide to Business Credit for Women, Minorities, and Small Businesses. Copies of the brochure are available from Publications Services, Mail Stop 127, Board of Governors of the Federal Reserve System, Washington, D.C. 20551; the first 100 copies are free. The release and brochure are available at www.federalreserve.gov/boarddocs/press/General/2000/200004262.
April 26 The Federal Reserve Board announced that its has issued a revision of the Consumer Handbook to Credit Protection Laws. The new edition reflects changes in law and regulation and includes a directory of federal agencies and information on how to file a credit complaint. Copies are available from Publications Services, Mail Stop 127, Board of Governors of the Federal Reserve System, Washington, D.C. 20551; the first 100 copies are free. The release and brochure are available at www.federalreserve.gov/boarddocs/press/General/2000/20000426.
May 10 The Federal Reserve Board, the FDIC, the OCC and the Office of Thrift Supervision approved final regulations implementing the provisions of the Gramm-Leach-Bliley Act governing the privacy of consumer financial information. The regulations limit disclosure by financial institutions of “nonpublic personal information” about individuals who obtain financial products or services for personal, family or household purposes. The regulations are effective Nov. 13, 2000, but financial institutions have until July 1, 2001, to reach full compliance with the regulations. The release and final rule are available at www.federalreserve.gov/boarddocs/press/BoardActs/2000/20000510.