[Federal Register Volume 61, Number 203 (Friday, October 18, 1996)]
[Notices]
[Pages 54441-54442]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26759]


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FEDERAL RESERVE SYSTEM

Royal Bank of Canada, et al.; Notices to Engage in Certain 
Nonbanking Activities

    Federal Reserve Bank of New York (Christopher J. McCurdy, Senior 
Vice President) 33 Liberty Street, New York, New York 10045; Federal 
Reserve Bank of Chicago (James A. Bluemle, Vice President) 230 South 
LaSalle Street, Chicago, Illinois 60690; and Federal Reserve Bank of 
Minneapolis (Karen L. Grandstrand, Vice President) 250 Marquette 
Avenue, Minneapolis, Minnesota 55480.
    1. Royal Bank of Canada, Montreal, Canada; Norwest Corporation, 
Minneapolis, Minnesota; Stichting Prioriteit ABN AMRO Holding, 
Stichting Administratiekantoor ABN AMRO Holding, ABN AMRO Holding N.V., 
and ABN AMRO Bank N.V., all of Amsterdam, The Netherlands; and ABN AMRO 
North America, Inc., Chicago, Illinois (collectively, Notificants), 
have applied under Sec.  225.23(a) of the Board's Regulation Y (12 CFR 
225.23(a)) for the Board's approval under section 4(c)(8) of the Bank 
Holding Company Act (BHC Act) (12 U.S.C. 1843(c)(8)) to engage de novo 
in data processing and data transmission activities in conformance with 
Regulation Y. See 12 CFR 225.25(b)(7). Notificants also propose to 
engage in activities that they maintain are incidental to permissible 
data processing and data transmission activities. See 12 CFR 
225.21(a)(2).
    Notificants propose to acquire more than 5 percent of the voting 
shares of Integrion Financial Network, L.L.C. (Company), a de novo 
limited liability company. Other investors in Company would include 
national banks, a savings and loan holding company and a subsidiary of 
International Business Machines Corporation. Company would engage in 
the design, development, operation and maintenance of a computer 
software and data transmission system (Gateway) that would permit 
customers of banks and other financial service companies (Financial 
Service Providers) to communicate electronically with their Financial 
Service Providers. The Gateway would serve as the electronic interface 
between the communications device used by the customer (such as a 
personal computer or telephone) and the Financial Service Provider, 
thereby providing customers access to the home banking or other 
electronic products or services offered by the Financial Service 
Provider. The Gateway also would permit customers to gain electronic 
access to the Internet, and other on-line financial or nonfinancial 
data bases or services that are maintained or provided by persons other 
than Financial Service Providers. The proposed activities, which are 
described in further detail in the notices, would be conducted 
throughout the United States.
    Section 4(c)(8) of the BHC Act provides that a bank holding company 
may, with Board approval, engage in any activity that the Board has 
determined (by order or regulation) to be so closely related to banking 
or managing or controlling banks as to be a proper incident thereto. 
The Board previously has determined that certain data processing and 
data transmission services are closely related to banking for purposes 
of section 4(c)(8) of the BHC Act, so long as the data to be processed 
or furnished are financial, banking, or economic in nature, and certain 
other conditions are met. See 12 CFR 225.25(b)(7). Notificants contend 
that all of the proposed activities will be conducted in conformance 
with the Board's Regulation Y, or are activities that are incidental to 
permissible activities.
    In determining whether the proposal satisfies the proper incident 
standard of section 4(c)(8) of the BHC Act, the Board must consider 
whether consummation

[[Page 54442]]

of the proposal can ``reasonably be expected to produce benefits to the 
public, such as greater convenience, increased competition, or gains in 
efficiency, that outweigh possible adverse effects, such as undue 
concentration of resources, decreased or unfair competition, conflicts 
of interests, or unsound banking practices.'' 12 U.S.C. 1843(c)(8). 
Notificants contend that consummation of the proposal will increase 
competition in the market for home banking and other electronic 
financial services, and will not result in any adverse effects.
    In publishing the proposal for comment, the Board does not take a 
position on issues raised by the proposal. Notice of the proposal is 
published solely to seek the views of interested persons on the issues 
presented by the notices and does not represent a determination by the 
Board that the proposal meets, or is likely to meet, the standards of 
the BHC Act. The notices are available for immediate inspection at the 
Federal Reserve Banks indicated above and at the offices of the Board 
of Governors. Any request for a hearing on the notices must be 
accompanied by a statement of reasons why a written presentation would 
not suffice in lieu of a hearing, identifying specifically any 
questions of fact that are in dispute, summarizing the evidence that 
would be presented at a hearing, and indicating how the party 
commenting would be aggrieved by approval of the proposal.
    Unless otherwise noted, comments regarding each of these notices 
must be received at the Reserve Banks indicated above or the offices of 
the Board of Governors not later than October 31, 1996.

    Board of Governors of the Federal Reserve System, October 11, 
1996.
Jennifer J. Johnson
Deputy Secretary of the Board
[FR Doc. 96-26759 Filed 10-17-96; 8:45 am]
BILLING CODE 6210-01-F