Dual Banking System Enhancement and Financial Services Competitiveness Act

Summary

Dual Banking System Enhancement and Financial Services Competitiveness Act - Amends the National Bank Act to allow national banks to engage in any activity allowed under the laws of the State in which the national bank is located provided that the Comptroller of the Currency (Comptroller) has not prohibited such activity by regulation or issued a notice of disapproval concerning such activity. Sets forth standards and procedures for the issuance of a notice of disapproval by the Comptroller. Specifies that a national bank may engage in such activities only in the State in which it is located and only to the same extent as State banks are allowed to engage in such activities. Amends the Bank Holding Company Act of 1956 to allow bank holding companies with bank subsidiaries to establish or acquire control of subsidiaries engaged in nonbanking activities in States where a State bank is allowed to engage in such activities. Authorizes the Federal Reserve Board (Board) to prescribe minimum capital or collateral requirements with respect to the activities engaged in by a bank holding company's nonbanking subsidiary. Specifies that a nonbanking subsidiary may engage in such activities only in the State in which it is located and only to the same extent as State banks are allowed to engage in such activities. Allows multistate bank holding companies to maintain a central operations facility for State authorized activities. Allows bank holding companies to acquire qualified securities companies. Amends the Banking Act of 1933 to allow banks to affiliate with qualified securities companies. Defines a "qualified securities company" as any company which: (1) is registered as a broker or dealer under the Securities Exchange Act of 1934; and (2) does not underwrite or deal in long-term corporate debt or corporate equity securities other than securities in which a national bank may deal, securities issued by an investment company, and securities which represent pools of assets which a bank may originate. Allows an officer, director, or employee of a qualified securities company to serve at the same time as an officer, director, or employee of any bank which is an affiliate of such securities company. Authorizes the Board to disapprove of the formation or acquisition of securities companies and nonbanking subsidiaries by a bank holding company. Sets forth standards and procedures for the issuance of a notice of disapproval. Prohibits a bank holding company from forming or acquiring securities companies or nonbanking subsidiaries if the Board has issued such a notice of disapproval.

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1 official file

• Introduced in House

  summary · EN · 30 July 1987

  Open at official source

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