Magazine article American Banker

Tennessee, Rich in Neighbors, Braces for Interstate Banking

Magazine article American Banker

Tennessee, Rich in Neighbors, Braces for Interstate Banking

Article excerpt

Tennessee is busily preparing for June 1, 1997, the day nationwide interstate branching goes into effect. It has to, because the Volunteer State is one of the two (Missouri is the other) with the most bordering states - eight.

That means Tennessee will have lots of competition from its neighbors vying to host holding-company subsidiaries or become the home state of various regional banks operating across state lines.

And it further complicates the task of creating uniform banking regulations with its many neighboring states, observers said. "We don't want Tennessee to be passed by," said Timothy L. Amos, general counsel for the Tennessee Bankers Association. "Our approach is we want to make sure Tennessee is not automatically disadvantaged, for some reason. We want to make sure that there is no structural or statutory problem that would tilt the balance toward another state."

The association is in the early stages of preparing a legislative package for the next General Assembly session, which begins Jan. 9, that would ensure the state is on at least an equal footing with its neighbors. Earlier this year, the state opted into interstate branching, effective on the federal law's nationwide trigger date - June 1, 1997.

Though still evolving, the bill for the next session would likely attempt to simplify the chartering process, facilitate branch and ATM openings, and ease residency requirements of directors, Mr. …

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