OCC 2000-5
Subject:  Electronic Banking
Description: Advance Notice of Proposed Rulemaking
Date: March 2, 2000

TO:  Chief Executive Officers of All National Banks, Department
     and Division Heads, and All Examining Personnel

The attached advance notice of proposed rulemaking (ANPR) seeks
public comment to assist the Office of the Comptroller of the
Currency (OCC) in responding to the rapid growth of electronic
commerce and the significant business opportunities that these
technological developments are affording national banks
consistent with safety and soundness. The ANPR was published in
the Federal Register on February 2, 2000. The comment period for
the ANPR closes on April 3, 2000.

The ANPR builds on a number of steps the OCC has already taken in
this important area to facilitate bank use of technology and to
improve its supervision of new banking activities.  The ANPR
references significant OCC opinions that have enabled national
banks to utilize electronic technologies more broadly.  For
example, the OCC has already issued opinions that permit national
banks to operate "virtual malls" i.e., bank-hosted collections of
Web pages with links to third party vendors' Web sites organized
as to product type and to host commercially enabled Web sites for
small retailers.  The ANPR also describes the recent "Internet
Banking" booklet of the Comptroller's Handbook, which addresses
the risks presented by Internet banking activities.

The ANPR invites public comment on a wide range of issues
intended to facilitate bank use of emerging technologies. 
Specifically, the ANPR asks:

     How should the OCC adapt its regulations or supervisory
     policies to facilitate national banks' use of electronic
     technology, consistent with safety and soundness?

     What statutes administered by the OCC could be interpreted
     more flexibly to accommodate new technologies?

     How can the OCC enhance the operational flexibility of banks
     engaging in electronic banking, consistent with safety and
     soundness?

The OCC expects to issue a notice of proposed rulemaking,
proposing changes to the OCC's regulations to aid national bank
involvement in electronic banking activities, after comments
submitted in response to this ANPR have been considered.

For further information, contact Stuart Feldstein, assistant
director, or Karl Betz, attorney, Legislative and Regulatory
Activities Division, at (202) 874-5090; James Gillespie,
assistant chief counsel, at (202) 874-5200; or Clifford Wilke,
director, Bank Technology, at (202) 874-5920.

_____________________________________
Julie L. Williams
First Senior Deputy Comptroller and Chief Counsel

Attachment--65 FR 4895