The FDIC issued a set of documentation procedures for state-chartered banks that engage in activities permissible for national banks. To do so, a state bank must maintain documentation in its own files that the OCC allows the activity for national banks and that the state bank is satisfying any restrictions the OCC has placed on that activity.
Additional documentation is required when a state bank engages in national bank-permitted activity through an unincorporated subsidiary. A state bank’s documentation is subject to FDIC examinations, and if the agency finds the activity not permissible after all, the state bank may be required to file an application or notice to continue.
State banks are generally allowed to engage in any activity or make any investment permissible for a national bank without making an application, the FDIC said, and they may also engage in activities not allowed for national banks so long as they do not pose significant risk to the Deposit Insurance Fund and comply with capital requirements.