OCC updates rule prohibiting use of branches in `deposit production'

WASHINGTON-The Office of the Comptroller of the Currency (OCC) updated its regs regarding deposit reduction, bringing it in line with requirements of the Gramm-Leach-Bliley Act of 1999. The rule prohibits the use of interstate branches for the purposes of `deposit production.' The final rule was published in the Federal Register on June 6 and becomes effective October 1. The final rule amends regulations implementing the deposit production prohibition of the Riegle-Neal Act to conform the regulations to the GLB Act. Prior to the final rule's adoption, the regs prohibited any bank from establishing or acquiring a branch or branches outside of its home state under the Riegle-Neal Act primarily for the purpose of deposit production. The GLB Act simply expanded the coverage of the deposit production prohibition of the Riegle-Neal Act.