To permit interstate banking.

Amends the Bank Holding Company Act of 1956 to authorize the Board of Governors of the Federal Reserve Board (the Board) to approve applications for interstate banking acquisitions by a bank holding company regardless of whether the laws of the State of the acquired bank authorize such acquisition.

Precludes the Board from approving such applications with respect to certain new bank acquisitions until January 1, 1993, unless State law specifically authorizes such acquisition by an out-of-State bank holding company. Authorizes consummation of such acquisition even though State law places non-reciprocal limitations upon out-of-State or foreign banking acquisitions.

Requires the Board to notify the relevant State supervisory authority of such an application.

Amends the International Banking Act of 1978 to require a foreign bank to obtain Board approval before acquiring certain increased out-of-State banking acquisitions.

Amends the Federal Deposit Insurance Act to set forth circumstances under which insured banks may engage in interstate branching. Requires States which allow their banks to open branches in other States to permit out-of-State banks to open branches within their borders. Retains the jurisdiction of a State to limit interstate bank branching within its borders.

Amends the Revised Statutes to set conditions for interstate branching for national banks.

Amends the International Banking Act of 1978 to set conditions for interstate branching for foreign banks.

Amends the Home Owners' Loan Act to authorize the Director of the Office of Thrift Supervision to approve interstate acquisition applications by savings and loan holding companies without regard to whether the laws of the State in which the acquired savings association is located permit such acquisition. Authorizes consummation of such acquisition even though State law places non-reciprocal limitations upon acquisitions by out-of-State or foreign savings associations.

Amends the Revised Statutes to repeal the residency qualifications for directors of national bank associations.