History of FSMBB
Brief History of the FSM Banking Board.
Glimpse into the History
The Federated States of Micronesia became a
constitutional State in 1979, and during the Second Special Session of the
First Congress of Federated States of Micronesia in 1980, Congressional Bill
No. 1-198 was passed and signed into Public Law 1-94
by President Tosiwo Nakayama on
May 20th.
Public Law 1-94, among other statutory requirements,
creates the Banking Board to regulate banking business in the FSM. The Board
comprised of three members, Director of Finance, the Director of Resources
and Development, and a member of Congress appointed by the Speaker.
Director of Finance served as the Chairman and CEO.
Public Law 1-94, as
amended, is codified under Title 29 of the FSM Codes.
The amendments are:
- Public Law 1-100:
Third Regular
Session of the FSM Congress, 1980. Amending Section 401 of
PL 1-94 in
respect to the establishment of foreign bank.
- Public Law 1-154: Third Special Session
of the FSM Congress, 1981. To alter the composition of the Banking
Board, and capital stock requirements.
- Public Law 1-155: Third Special Session
of the FSM Congress, 1981. Amending Section 501 relating to licensing
requirements for banks.
- Public Law 2-20:
First Regular Session of the FSM Congress, 1981. To make the
language of the entire law consistent with the provisions of
Section 201 of that law, as amended by Public Law 1-154.
- Public Law 6-41: Second
Regular Seccion of the FSM Congress, 1989. Amending Sections 501 and 504 and adding a
new section 617 to clarify the licensing requirement for banks doing
business in the FSM, modifying the criteria to be reviewed by the
Banking Board in its annual examination of banks, and by renumbering
sections 617 through 626.
- Public Law 6-73:
Third
Regular Session of the FSM Congress, 1990. To amend Sections 205 and 801 to
eliminate reference to the high court of TTPI.
- Public Law 9-130:
Third Special Session
of the FSM Congress,
1995. To further amend title 29 of the code of the Federated States
of Micronesia, as amended by Public Laws Nos. 6-41 and 6-73, by
amending sections 102, 204, 302, 306, 307, 308, 403, 404, 406, 407,
408, 601, 603, 604, 605, 608, 611, and 802; by further amending
sections 623, 626, and 627, as amended by Public Law No. 6-41; by
further amending section 801, as amended by Public Law No. 6-73; by
repealing and re-enacting sections 201, 202, 203, 501, 502, and 503;
by adding new sections 204, 205, 206 and 311; by renumbering section
205; by repealing section 504; for the purpose of establishing the
position of Banking Commissioner and revising the laws and
procedures for licensing and regulating banks; and for other
purposes.
- Public Law 12-57:
Third Special Session
of the FSM Congress,
2002. To further amend title 29 of the code of the Federated States
of Micronesia, as amended, by mending sections 102, 104, 205, 301,
309, 402, 403, 404, 601, 604, 605, 606, 612, 613, 622 and 627, and
by enacting a new section 209 and a new chapter 7, to incorporate
the Basle Principles of banking supervision into the banking laws of
the Federated States of Micronesia, to increse the minimum standards
for investment and depositor protection for new banks, and for other
purposes.
- Public Law 13-56:
Fourth Regular Session of the FSM Congress, 2004. To further
amend title 29 of the code of the Federated States of
Micronesia, as amended, by amending sections 102, 201, 601, 603,
605, 613, 617, 619, 621, 701, 702, 801, and 802 thereof and by
enacting a new section 106 and a new chapter 9 to incorporate the
requirements imposed on FDIC-insured banks by the amendments to the
Compact of Free Association, to enact laws governing treatment of
dormant bank accounts, to make certain other necessary changes, and
for other purposes.
- Public Law 16-16:
First Regular Session
of the FSM Congress,
2009. To amend title 29 of the Code of the Federated States of
Micronesia by changing section 613 in order to increase the limit
that a bank may loan to its officer, director, agent, employee
and/or related person; and for other purposes.
- Public Law 22-04:
First Regular Session of the FSM Congress, 2021. To amend section 309 of title 29 of the
Code of the Federated States of Micronesia (Annotated), to establish
a maximum amount of shares an individual may own in a domestic bank,
and for other purposes.