OCC Proposes Clarifying National Trust Bank Powers, Could Clarify More

The OCC issued a proposed rule that would amend its chartering rules to better match the National Bank Act's language and seeks to clarify what national trust banks can do. It would specify that national banks whose operations are limited to trust company activities may engage in nonfiduciary activities alongside their fiduciary businesses. The change would attempt to make it easier for these institutions to offer services like custody and safekeeping—and arguably more—without being forced to act like traditional banks.

Comments are due by February 11, 2026.

Key Takeaways

• Broadens the current regulation's language. The proposed rule would update the OCC's chartering regulation, 12 C.F.R. § 5.20, to say that a special purpose national bank, including a national trust bank, may limit its activities to "the operations of a trust company and activities related thereto." This change would eliminate the narrower and potentially more confusing