Victor Fazio: “I rise in strong support of H.R. 3841, the Interstate Banking Efficiency Act. This legislation is a critical component…”

“I rise in strong support of H.R. 3841, the Interstate Banking Efficiency Act. This legislation is a critical component of our efforts to keep the national economic recovery moving forward. Our Nation's bank regulatory system is riddled with cumbersome organizational requirements for interstate banking activities which add significant costs to banks that operate in more than one State. Today, 174 multistate bank holding companies are required to set up separate and distinct organizational structures for each State in which they operate. They must have their own executives and boards of directors, undergo separate examinations and audits, receive separate ratings and maintain separate capital reserves. These organizational arrangements are required even if the bank affiliates are operating essentially as branches. Clearly, these requirements are an administrative burden which carries a heavy price in overhead. H.R. 3841 seeks to rationalize interstate banking and branching regulations to eliminate unnecessary administrative requirements without compromising the safety and soundness of our Nation's financial institutions. H.R. 3841 will streamline these regulatory burdens by enabling banks to own branches and provide banking services across State boundaries without having to establish separately capitalized and organized banks in each State as is required under current law.”