On September 17, 2026, the FDIC Board of Directors approved a notice of proposed rulemaking that would amend the agency’s regulations to promote parity between state banks and national banks. The proposed rule recognizes parity between out-of-State State banks and national banks concerning the application of host State laws when State banks provide services outside of their chartering State.

Under the proposed rule, when host State laws do not apply to a national bank, those laws would similarly not apply to an out-of-State State bank providing services in the host State with or without a branch. Specifically, the amendments would provide that, for purposes of section 24(j) of the Federal Deposit Insurance Act, the laws of a host State apply to any branch in the host State of, or any services provided in the host State by, an out-of-State State bank to the same extent such State laws apply to a branch in the host State of, or any services provided in the host State by, an out-of-State national bank.

According to the FDIC’s press release, the proposed rule would not affect the interest rates state banks are permitted to charge with respect to any of their loans, which are governed by section 27 of the FDI Act.

Comments on the proposed rule will be accepted until November 23, 2026.

Read the FDIC’s press release here.

The proposed rule can be found here.