# FDIC FIL-70-2001: ONLINE DELIVERY OF BANKING SERVICES

> Federal · Agency guidance · Superseded

URL: https://www.frixlaw.com/law-library/statutes/FDIC_FIL01070

## Section

- **Citation:** FDIC FIL-70-2001
- **Heading:** ONLINE DELIVERY OF BANKING SERVICES
- **Jurisdiction:** Federal
- **Kind:** Agency guidance
- **Status:** Superseded
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** FDIC Financial Institution Letters / ONLINE DELIVERY OF BANKING SERVICES

## Text

37029
Federal Register / Vol. 66, No. 136 / Monday, July 16, 2001 / Notices
1 The FDIC issued electronic banking examination
procedures in January 1997 and implemented an
electronic banking subject matter expert program in
April 1997. The Division of Supervision created an
Electronic Banking Branch to focus attention on
electronic banking supervisory issues in September
2000. In addition, the FDIC has issued a variety of
written guidance concerning risks and appropriate
procedures for electronic banking. See e.g., FIL 81–
2000, Risk Management of Technology Outsourcing
(November 29, 2000); FIL 77–2000, Bank
Technology Bulletin, Internet Domain Names
(November 9, 2000); FIL 72–2000, Electronic
Signature in Global and National Commerce Act
(November 2, 2000); FIL 67–2000, Security
Monitoring of Computer Networks (October 3,
2000); FIL 63–2000, Online Banking (September 21,
2000); FIL 131–97, Security Risks Associated with
the Internet (December 18, 1997).
For further information, contact
Kenneth Hogan at (202) 208–0434.
Linwood A. Watson, Jr.,
Acting Secretary.
[FR Doc. 01–17682 Filed 7–13–01; 8:45 am]
BILLING CODE 6717–01–P
FEDERAL COMMUNICATIONS
COMMISSION
[Report No. 2495]
Petitions for Reconsideration and
Clarification of Action in Rulemaking
Proceeding
July 10, 2001.
Petitions for Reconsideration and
Clarification have been filed in the
Commission’s rulemaking proceeding
listed in this Public Notice and
published pursuant to 47 CFR Section
1.429(e). The full text of these
documents are available for viewing and
copying in Room CY–A257, 445 12th
Street, SW., Washington, DC or may be
purchased from the Commission’s copy
contractor, ITS, Inc. (202) 857–3800.
Oppositions to these petitions must be
filed by July 31, 2001. See Section
1.4(b)(1) of the Commission’s rules (47
CFR 1.4(b)(1)). Replies to an opposition
must be filed within 10 days after the
time for filing oppositions has expired.
Subject:
Federal-State Joint Board on Universal
Service (CC Docket No
ngton, DC or may be
purchased from the Commission’s copy
contractor, ITS, Inc. (202) 857–3800.
Oppositions to these petitions must be
filed by July 31, 2001. See Section
1.4(b)(1) of the Commission’s rules (47
CFR 1.4(b)(1)). Replies to an opposition
must be filed within 10 days after the
time for filing oppositions has expired.
Subject:
Federal-State Joint Board on Universal
Service (CC Docket No. 96–45)
Multi-Association Group (MAG) Plan
for Regulation of Interstate Services
of Non-Price Cap Incumbent Local
Exchange Carriers and
Interexchange Carriers (CC Docket
No. 00–256)
Number of Petitions Filed: 4.
Magalie Roman Salas,
Secretary.
[FR Doc. 01–17664 Filed 7–13–01; 8:45 am]
BILLING CODE 6712–01–M
FEDERAL DEPOSIT INSURANCE
CORPORATION
Request for Comment on Study of
Banking Regulations Regarding the
Online Delivery of Banking Services
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Request for comment.
SUMMARY: The FDIC is reviewing its
regulations regarding the delivery of
financial services. The purpose of this
review is to identify changes or
additions to its regulations that would
facilitate the use of new technologies by
financial institutions. This Request for
Comment solicits comment on issues
arising from the electronic delivery of
financial products and services.
DATES: Comments must be received by
September 14, 2001.
ADDRESSES: Send written comments to
Robert E. Feldman, Executive Secretary,
Attention: Comments/OES, Federal
Deposit Insurance Corporation, 550 17th
Street, NW., Washington, DC 20429.
Comments may be hand-delivered to the
guard station at the rear of the 550 17th
Street Building (located on F Street), on
business days between 7 a.m. and 5 p.m.
(facsimile number (202) 898–3838;
Internet address: comments@fdic.gov
)
E. Feldman, Executive Secretary,
Attention: Comments/OES, Federal
Deposit Insurance Corporation, 550 17th
Street, NW., Washington, DC 20429.
Comments may be hand-delivered to the
guard station at the rear of the 550 17th
Street Building (located on F Street), on
business days between 7 a.m. and 5 p.m.
(facsimile number (202) 898–3838;
Internet address: comments@fdic.gov
).
Comments may be posted on the FDIC
internet site at http://www.fdic.gov/
regulations/laws/federal/propose.html
and may be inspected and photocopied
in the FDIC Public Information Center,
Room 100, 801 17th Street, NW.,
Washington, DC 20429, between 9 a.m.
and 4:30 p.m. on business days.
FOR FURTHER INFORMATION CONTACT:
Jeffrey M. Kopchik, Senior Policy
Analyst, Division of Supervision (202)
898–3872; or Robert A. Patrick, Counsel,
Legal Division (202) 898–3757.
SUPPLEMENTARY INFORMATION:
Introduction
Section 729 of the Gramm-Leach-
Bliley Act, Public Law 106–102 (GLBA),
requires the FDIC, and other federal
bank regulatory agencies, to review
regulations regarding the delivery of
financial services and report to Congress
recommendations for adapting existing
requirements to online banking and
lending. The purpose of this Request for
Comment is to invite public comment
on issues regarding financial
institutions’ involvement in electronic
banking, before submission of the
Corporation’s report to Congress. Public
comment will help determine whether
any FDIC regulations should be revised
to remove regulatory impediments to
financial institutions’ use of new
technologies. The FDIC also would like
to know whether it should consider
promulgating regulations that would
facilitate financial institutions’ use of
new technologies. Based on the
comments received, the FDIC, in its
report to Congress, may identify
possible revisions or additions to FDIC
regulations or supervisory guidance
d
to remove regulatory impediments to
financial institutions’ use of new
technologies. The FDIC also would like
to know whether it should consider
promulgating regulations that would
facilitate financial institutions’ use of
new technologies. Based on the
comments received, the FDIC, in its
report to Congress, may identify
possible revisions or additions to FDIC
regulations or supervisory guidance.
Background
The application of new technologies
to traditional banking products and
services is dramatically altering the
ways in which financial institutions
conduct business. Advances in
telecommunications provide financial
institutions with faster and more
efficient communication and data
transmission. The Internet provides
financial institutions with a vehicle to
reach a global market area without an
investment in ‘‘brick and mortar’’
offices. Developments in technology are
causing financial institutions to
reevaluate existing delivery channels
and business practices, develop new
products and services, and serve
customers more efficiently.
Through the issuance of supervisory
guidelines such as the Standards for
Safeguarding Customer Information, 12
CFR part 364, Appendix B (66 FR 8616,
Feb. 1, 2001) (FIL 22–2001, March 14,
2001), the FDIC is working to identify
and educate banks about the risks
presented by electronic banking and to
ensure that its regulations appropriately
address these risks.1
General Comments
Commenters are invited to submit
comments and recommendations in
connection with any of the following
questions or any other issues relating to
the FDIC’s policies or procedures for
supervising financial institutions’ use of
electronic delivery channels
cate banks about the risks
presented by electronic banking and to
ensure that its regulations appropriately
address these risks.1
General Comments
Commenters are invited to submit
comments and recommendations in
connection with any of the following
questions or any other issues relating to
the FDIC’s policies or procedures for
supervising financial institutions’ use of
electronic delivery channels.
• Are there specific regulations the
FDIC should modify because they
impede the use of a new technology that
would allow financial institutions to
offer improved products or services in a
more efficient manner and at a lower
cost?
• Are there areas where financial
institutions would benefit from
additional clarification of rules or
guidance concerning the risks
associated with electronic banking
activities?
• Are there specific areas in which
regulatory changes are needed to
enhance consumer acceptance of,
confidence in, or access to, electronic
banking?
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37030
Federal Register / Vol. 66, No. 136 / Monday, July 16, 2001 / Notices
Hyperlinking
The Internet has made it possible for
financial institutions and non-financial
commercial enterprises to partner in
ways that may not be apparent to
customers visiting a web site. For
example, a financial institution’s web
site may include hyperlinks that transfer
the customer to the web sites of one or
more non-financial institutions. These
other web sites may provide non-
financial information or sell non-
financial products or services. Sites
differ in the degree to which they
inform a person that products or
services accessible through the selection
of a hyperlink are, or are not, offered,
sponsored, or endorsed by the bank,
which may be confusing to site visitors
r to the web sites of one or
more non-financial institutions. These
other web sites may provide non-
financial information or sell non-
financial products or services. Sites
differ in the degree to which they
inform a person that products or
services accessible through the selection
of a hyperlink are, or are not, offered,
sponsored, or endorsed by the bank,
which may be confusing to site visitors.
• Should the FDIC promulgate a
regulation or publish guidance setting
forth standards for state nonmember
banks concerning the use of hyperlinks?
• Are there technology solutions to
address these issues?
Physical Location
Internet banking raises issues with
respect to how the FDIC should
interpret existing laws and regulations
that reference geographic terms or rely
on concepts of physical presence. For
example, the definition of ‘‘branch’’
contained in § 303.41(a) of the FDIC’s
regulations (12 CFR 303.41(a)) assumes
the existence of a building permanently
or temporarily located at a specific
physical location. It does not address
banking transactions conducted over the
Internet where the consumer and a bank
representative do not meet face to face.
See 12 CFR part 303, subpart C.
• Does reliance on these terms and
concepts create an impediment to
financial institutions conducting
operations on the Internet? If so, how
should the FDIC clarify its regulations?
• Are there other instances in which
online banking or lending would benefit
from a clarification of references to
physical location in FDIC regulations? If
so, how should the FDIC address those
instances?
Appraisals
Certain loans must be supported by
written real estate appraisals performed
in accordance with uniform standards,
supported by the presentation and
analysis of relevant market information.
See 12 CFR part 323.
• Would online lending benefit from
any clarification of the FDIC’s
application of this regulation in terms of
what constitutes a written appraisal, or
the presentation of relevant market
information
oans must be supported by
written real estate appraisals performed
in accordance with uniform standards,
supported by the presentation and
analysis of relevant market information.
See 12 CFR part 323.
• Would online lending benefit from
any clarification of the FDIC’s
application of this regulation in terms of
what constitutes a written appraisal, or
the presentation of relevant market
information. If so, what clarifications
should the FDIC make to facilitate the
use of appraisals in electronic form?
• What types of controls regarding
authentication of an electronic
appraisal, certification of the appraiser,
or other standards would be appropriate
to assure authenticity and integrity in
connection with filing electronic
appraisals?
Electronic Signatures
The Electronic Signatures in Global
and National Commerce Act, 15 U.S.C.
7001, et seq. (E-Sign Act), provides that
contracts and signatures with respect to
any transaction affecting interstate
commerce may not be denied validity
solely because they are in electronic
form. The E-Sign Act also provides that
records of such contracts may be
maintained in electronic form, subject to
certain requirements, i.e., they must
accurately reflect the information in the
contract, be accessible to all persons
who are entitled to access them, and be
capable of being accurately reproduced
for later reference.
• Should the FDIC promulgate
regulations or publish guidance setting
forth standards for the use of electronic
signatures and records? See 15 U.S.C.
7004.
By order of the Board of Directors.
Dated at Washington, DC, this 10th day of
July, 2001.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 01–17666 Filed 7–13–01; 8:45 am]
BILLING CODE 6714–01–P
FEDERAL EMERGENCY
MANAGEMENT AGENCY
[FEMA–1370–DR]
Minnesota; Amendment No. 6 to Notice
of a Major Disaster Declaration
AGENCY: Federal Emergency
Management Agency (FEMA).
ACTION: Notice
d of Directors.
Dated at Washington, DC, this 10th day of
July, 2001.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 01–17666 Filed 7–13–01; 8:45 am]
BILLING CODE 6714–01–P
FEDERAL EMERGENCY
MANAGEMENT AGENCY
[FEMA–1370–DR]
Minnesota; Amendment No. 6 to Notice
of a Major Disaster Declaration
AGENCY: Federal Emergency
Management Agency (FEMA).
ACTION: Notice.
SUMMARY: This notice amends the notice
of a major disaster declaration for the
State of Minnesota, (FEMA–1370–DR),
dated May 16, 2001, and related
determinations.
EFFECTIVE DATE: June 26, 2001
FOR FURTHER INFORMATION CONTACT:
Madge Dale, Readiness, Response and
Recovery Directorate, Federal
Emergency Management Agency,
Washington, DC 20472, (202) 646–5920.
SUPPLEMENTARY INFORMATION: The notice
of a major disaster declaration for the
State of Minnesota is hereby amended to
include the following areas among those
areas determined to have been adversely
affected by the catastrophe declared a
major disaster by the President in his
declaration of May 16, 2001:
Dodge, Faribault, and Isanti Counties for
Public Assistance.
Beltrami County for Public Assistance
(already designated for Individual
Assistance).
McLeod and Pope Counties for Individual
Assistance (already designated for Public
Assistance).
(The following Catalog of Federal Domestic
Assistance Numbers (CFDA) are to be used
for reporting and drawing funds: 83.537,
Community Disaster Loans; 83.538, Cora
Brown Fund Program; 83.539, Crisis
Counseling; 83.540, Disaster Legal Services
Program; 83.541, Disaster Unemployment
Assistance (DUA); 83.542, Fire Suppression
Assistance; 83.543, Individual and Family
Grant (IFG) Program; 83.544, Public
Assistance Grants; 83.545, Disaster Housing
Program; 83.548, Hazard Mitigation Grant
Program.)
Lacy E. Suiter,
Assistant Director, Readiness, Response and
Recovery Directorate.
[FR Doc
539, Crisis
Counseling; 83.540, Disaster Legal Services
Program; 83.541, Disaster Unemployment
Assistance (DUA); 83.542, Fire Suppression
Assistance; 83.543, Individual and Family
Grant (IFG) Program; 83.544, Public
Assistance Grants; 83.545, Disaster Housing
Program; 83.548, Hazard Mitigation Grant
Program.)
Lacy E. Suiter,
Assistant Director, Readiness, Response and
Recovery Directorate.
[FR Doc. 01–17642 Filed 7–13–01; 8:45 am]
BILLING CODE 6718–02–P
FEDERAL EMERGENCY
MANAGEMENT AGENCY
[FEMA–1384–DR]
Oklahoma; Major Disaster and Related
Determinations
AGENCY: Federal Emergency
Management Agency (FEMA).
ACTION: Notice.
SUMMARY: This is a notice of the
Presidential declaration of a major
disaster for the State of Oklahoma
(FEMA–1384–DR), dated June 29, 2001,
and related determinations.
EFFECTIVE DATE: June 29, 2001.
FOR FURTHER INFORMATION CONTACT:
Madge Dale, Response and Recovery
Directorate, Federal Emergency
Management Agency, Washington, DC
20472, (202) 646–5920.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that, in a letter dated June
29, 2001, the President declared a major
disaster under the authority of the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act, 42 USC
5121, as follows:
I have determined that the damage in
certain areas of the State of Oklahoma,
resulting from severe storms, flooding, and
tornadoes on May 27–30, 2001, is of
sufficient severity and magnitude to warrant
a major disaster declaration under the Robert
T. Stafford Disaster Relief and Emergency
Assistance Act, 42 USC 5121 (Stafford Act).
I, therefore, declare that such a major disaster
exists in the State of Oklahoma.
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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/FDIC_FIL01070. Check the current official text before relying on it. Not legal advice.