[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] ----------------------------------------------------------------------- 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