Notice of Proposed Rulemaking on State Bank Parity
September 17, 2026 / Source: FDIC
Summary:
On September 17, 2026, the FDIC’s Board of Directors approved a notice of proposed rulemaking that would amend the agency’s regulations to promote parity between out-of-state state banks and national banks concerning the application of state laws.
Statement of Applicability: The contents of, and material referenced in, this FIL apply to all FDIC-supervised financial institutions.
Highlights:
- 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.
- Consistent with section 24(j) of the Federal Deposit Insurance Act (FDI Act), the law of the state bank’s chartering state would apply.
- The proposed rule would not affect the interest rates state banks are permitted to charge with respect to any of their loans, which are governed by section 27 of the FDI Act.
- In addition, the proposed rule would not constitute a determination by the FDIC that any host state law is preempted by federal law. Rather, the proposed rule would merely clarify the application of state law under section 24(j) of the FDI Act in instances where an out-of-state state bank provides services in a host state.
- Comments on the proposed rule are due 60 days after the date of publication in the Federal Register.
FIL-60-2026