History of FSMBB

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.