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Federal Deposit Insurance Corporation Approves Proposed Rule on State Bank Parity

On September 17, 2026, the Federal Deposit Insurance Corporation (FDIC) Board of Directors approved a notice of proposed rulemaking to amend the agency's regulations and promote parity between state banks and national banks. Under the proposed rule, when host state laws do not apply to a national bank, those laws would similarly not apply to an out-of-state state bank providing services in the host state, regardless of whether the state bank has a branch in the host state. The law of the state bank's chartering state would apply, consistent with section 24(j) of the Federal Deposit Insurance Act (FDI Act). The proposed rule aims to create regulatory consistency and level the competitive playing field between state-chartered and nationally-chartered banking institutions operating across state lines. By establishing that out-of-state state banks receive the same regulatory treatment as national banks in host states, the FDIC seeks to eliminate disparities in how these institutions are regulated when conducting business outside their home states. The rule would apply to all state banks and national banks engaged in interstate banking activities. Notably, the proposed rule does not affect the interest rates state banks are permitted to charge on their loans, which remain governed by section 27 of the FDI Act. The comment period closes 60 days after publication in the Federal Register. Stakeholders, including state banks, national banks, state regulators, and other interested parties, should submit comments during this window. The FDIC will review all submissions before finalising the rule.

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Federal Deposit Insurance Corporation Approves Proposed Rule on State Bank Parity

On September 17, 2026, the Federal Deposit Insurance Corporation (FDIC) Board of Directors approved a notice of proposed rulemaking to amend its regulations and promote parity between state banks and national banks. The proposed rule addresses the application of host state laws to out-of-state state banks providing services in host states. Under the proposed rule, when host state laws do not apply to a national bank, those laws would similarly not apply to an out-of-state state bank providing services in the host state, regardless of whether the state bank has a branch in the host state. In such cases, the law of the state bank's chartering state would apply, consistent with section 24(j) of the Federal Deposit Insurance Act (FDI Act). The proposed rule aims to create regulatory consistency and eliminate competitive disadvantages between state and national banks operating across state lines. The rule would not affect the interest rates state banks are permitted to charge on their loans, which remain governed by section 27 of the FDI Act. The proposed rule is significant for state-chartered banks seeking to expand operations across state lines, as it clarifies the regulatory framework governing their activities in host states and ensures they operate under equivalent conditions to national banks. This development promotes competitive neutrality in the banking sector and may facilitate interstate banking activities for state institutions. The comment period for the proposed rule closes 60 days after publication in the Federal Register. Interested parties, including state banks, national banks, and other stakeholders, should submit comments during this period to the FDIC. The FDIC will review all submissions before finalizing the rule.

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search "FDIC proposed rulemaking state bank parity" → nids 95262, 93010, 91769, 92756, 91755
search "FDIC national bank state bank parity host state laws Federal Deposit Insurance Act" → nids 92337, 92756, 91769, 95139, 95262

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U.S. Federal Deposit Insurance Corporation Issues Consultation on State Bank Parity

On September 17, 2026, the Federal Deposit Insurance Corporation (FDIC) Board of Directors approved a notice of proposed rulemaking to amend the agency's regulations and promote parity between state banks and national banks. Under the proposed rule, when host State laws do not apply to a national bank, those laws would similarly not apply to an out-of-State State bank providing services in the host State with or without a branch. Specifically, the amendments would provide that, for purposes of section 24(j) of the Federal Deposit Insurance Act , the laws of a host State apply to any branch in the host State of, or any services provided in the host State by, an out-of-State State bank to the same extent such State laws apply to a branch in the host State of, or any services provided in the host State by, an out-of-State national bank. Additional key points of the proposed rule include: Whenever a host State's law is deemed inapplicable to an out-of-State State bank, the laws of the bank's chartering (home) State will govern its activities instead. The proposal clarifies that the laws in question include host State regulations concerning community reinvestment, consumer protection, fair lending, and the establishment of intrastate branches. The rulemaking is intended to resolve legal uncertainty and a competitive imbalance. The proposed rule explicitly does not affect the interest rates that State banks are permitted to charge on loans, which will continue to be governed by section 27 of the Federal Deposit Insurance Act . The comment period closes 60 days after publication in the Federal Register. Stakeholders, including state banks, national banks, state regulators, and other interested parties, should submit comments during this window to MediaRequests@fdic.gov . The FDIC will review all submissions before finalizing the rule.