Oklahoma bank holding companies could buy Kansas banks, and
Kansas bank holding companies could buy Oklahoma banks, with the
implementation of an interstate banking measure expected to be
signed into law this week by Kansas Gov. Joan Finney.
Oklahoma enacted its first interstate banking law in 1986, and
it became effective the following year. Kansas has been the last
state without any form of interstate banking.
The Kansas measure, passed last week by the state Senate,
provides potential interstate banking in six states, including
Oklahoma. The measure allows interstate banking in those states
which have reciprocal agreements.
Paul Foster, general counsel with the Oklahoma State Banking
Department, said Oklahoma's interstate banking law differs from the
new Kansas law because it is a nationwide law rather than a regional
law. Oklahoma law does not designate states to which it may apply,
but it does require reciprocity.
``The test is very simple,'' he said. ``Does the law of the
state in question allow Oklahoma holding companies to own banks
there in a way that is not more restrictive? If it appears not to
be more restrictive, then it is allowed.''
He said neither law allows interstate branching. The laws of
the two states merely allow holding companies - not individual banks
- to cross state lines.
Foster said his knowledge of the Kansas law is limited because
he has not yet seen a copy of it, but he expects that it will have a
greater effect on border areas than on big cities.
He said it is not uncommon for people in communities near state
lines to live in one state and bank in another.
He said small- to medium-sized banks may form holding companies
to own other small- to medium-sized banks serving the same customers
on the other side of the state line.
``These are relatively little banks, so they don't draw a lot of
attention,'' he said.
``In this case, the stand alone bank is operated similarly to
operating a branch. In the stand alone bank, you have a president
and vice president, but they serve essentially as managers. So in
effect, it can be the same as branching, except that you have to
capitalize the bank on the other side of the state line whereas you
don't with a branch.''
Supporters of the Kansas measure said it would allow the state
to form its own interstate banking laws one step before Congess
mandates it for all states. They also said it could provide more
credit for small Kansas businesses. . .
- An Oklahoma-based mutual fund was listed as the top
performer in the country for two consecutive weeks in February,
according to Donoghue's Money Fund report.
The American Performance Cash Management Fund ended with a
seven-day compounded yield of 7.53 percent on Feb. 19 and Feb. 26,
according to Andrea Parks, public relations manager at the Bank of
The BancOklahoma Trust Co., part of the Bank of Oklahoma, serves
with Dallas-based AMR Investment Services Inc. as investment adviser
of the American Performance family of mutual fund portfolios. They
are distributed by Winsbury C. of Columbus, Ohio.
``Our economic work led us to forecast declining rates,'' said
Rudy M. Thomas, senior vice president and chief investment officer
of BancOklahoma Trust. ``Therefore we capitalized in this instance
by extending the portfolio maturity to realize these returns.''
The American Performance Funds include the U.S. Treasury Fund,
Cash Management Fund, Performance Equity Fund, Intermediate Bond
Fund and Performance Bond Fund. . .
- An Automated Clearing House Originators' Seminar is set for
March 28 from 8:30 a.m. to noon at the Holiday Inn West, 801 S.
The seminar will cover options, benefits, costs, risks and
procedures of originating Automated Clearing House transactions. …