Amendments to Interim Rule and Request for Public Comment on Regulation Y (Bank Holding Companies and

Federal Reserve Bankll★Kof DallasDALLAS, TEXASMarch 31, 2000 75265-5906Notice 2000-21TO: The Chief Executive Officer of eachfinancial institution and others concernedin the Eleventh Federal Reserve DistrictSUBJECTAmendments to Interim Rule andRequest for Public Comment on Regulation Y(Bank Holding Companies and Change in Bank Control)DETAILSThe Board of Governors of the Federal Reserve System has adopted interim basisamendments to the interim rule published in the January 25 Federal Register (see Notice2000-09). The interim rule, which became effective March 11, 2000, established procedureswhereby bank holding companies and some foreign banks may elect to become financial holdingcompanies.As a result of its experience in processing elections under the interim rule, the Boardhas amended the interim rule, effective immediately, to accomplish the following:• Permit elections filed by foreign banks that meet the rule’s well-managed andwell-capitalized standards to become effective on the 31st day after filing, unlessthe Board finds the election ineffective or the foreign bank agrees to extend thereview period;• Require that all U.S. depository institution subsidiaries of electing foreign banksbe well capitalized and well managed and have satisfactory or better compositeand Community Reinvestment Act ratings; and• Encourage foreign banks that are chartered in countries where no other bank fromthat country has received a comprehensive consolidated ...