NR 96-82
August 2, 1996

             Obstacle Removed For Small Banks Seeking to
                     Attract Qualified Managers 

WASHINGTON, D.C. -- A final rule appears in today's Federal
Register that will revise the bank management interlocks rule.  The
new rule allows management interlocks between an institution under
$20 million in assets and an institution with assets of $20 million
or more that are both located in the same metropolitan statistical
area, a large urban-suburban area generally centered on a major
city. The final rule, which takes effect October 1, is published
jointly by the Office of the Comptroller of the Currency, Federal
Deposit Insurance Corporation, Federal Reserve Board and Office of
Thrift Supervision.

The change is intended to provide small institutions with a larger
pool of qualified candidates for management positions.  However,
management interlocks between unaffiliated institutions remain
impermissible, regardless of the size of the institutions, when the
institutions are in the same community.

The final rule also implements provisions of the Riegle Community
Development and Regulatory Improvement Act of 1994 by allowing
banks to have interlocks that otherwise would be impermissible if
the bank seeking to add a management official meets the criteria in
the rule for obtaining an exemption.  These exemptions are
available, for instance, when an individual has special knowledge
or experience that would improve the provision of credit to low-
and moderate-income areas or when a bank, after undertaking a
reasonable search, is unable to find someone who is qualified,
interested in serving, and not prohibited by the statute from
serving.

                               # # #

The OCC charters, regulates and examines approximately 2,800 national banks and
70 federal branches and agencies of foreign banks in the U.S., accounting for
more than half the nation's banking assets.  Its mission is to ensure the safety
and soundness of the national banking system.