Federal Reserve Board requests comment on a proposal to modernize rules for mutual banking organizations

Federal Reserve Board requests comment on a proposal to modernize rules for mutual banking organizations

The Federal Reserve Board on Friday requested comment on a proposal to modernize rules for mutual banking organizations. These institutions are owned by deposi Official websites use .govA .gov website belongs to an official government organization in the United States. Secure .gov websites use HTTPSA lock (LockLocked padlock icon) or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites. The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system. For release at 10:00 a.m. EDT Share The Federal Reserve Board on Friday requested comment on a proposal to modernize rules for mutual banking organizations.

These institutions are owned by depositors rather than shareholders, and more than 90 percent have less than $3 billion in total assets. The Board assumed regulatory and supervisory authority over mutual banks from the Office of Thrift Supervision in 2011. The rules governing these banks were first established in 1993. They have not been updated and have proven over time to be overly burdensome and complex. "Today's proposal is another important step in our work to modernize the bank regulatory framework by updating mutual bank regulations for the first time in 30 years. The continued success of this model contributes to the institutional diversity of