Thrift Charter Enhancement Act of 1988

Thrift Charter Enhancement Act of 1988 - Amends the National Housing Act to increase the limit on the aggregate amount of transaction or service agreements allowed between affiliated federally insured thrift institutions without the prior approval of the Federal Savings and Loan Insurance Corporation (FSLIC) in cases of GAAP-qualified insured institutions. Increases such limit from the lesser of to the greater of $100,000 or 0.1 percent of the thrift institution's total assets, not to exceed a maximum of $2,000,000 for transactions and $1,000,000 for service agreements.

Defines a "GAPP-qualified insured institution" as an institution: (1) whose capital equals or exceeds the greater of four percent of total assets or the minimum capital level prescribed by the FSLIC; and (2) that is not affiliated with an insured institution whose capital is less than three percent of total assets. Exempts an institution from the three percent capital requirements if it: (1) is affiliated due to the acquisition of failed or failing institutions; (2) is solvent under specified accounting standards; (3) has submitted a plan to the FSLIC for increasing capital to equal or exceed three percent within four years and the FSLIC has determined such plan to be feasible; and (4) is in compliance with such plan.

Specifies that provisions of the Federal Reserve Act prohibiting loans and extensions of credit by member banks to executive officers and directors of banks and to political or campaign committees shall apply to insured thrift institutions in the same manner and to the same extent as if such insured institution were a State member bank.

Allows a savings and loan holding company to acquire up to five percent of the voting shares of an unaffiliated thrift institution. (Present law prohibits the acquisition of any voting shares of an unaffiliated institution unless the holding company has, or is acquiring, control of such thrift institution.) Specifies that such five percent limit shall not prohibit a securities dealer that is a subsidiary of a savings and loan holding company from underwriting voting shares of an unaffiliated institution or holding company.

Repeals requirements for prior FSLIC approval for interlocking directors of savings and loan holding companies.

Allows a savings and loan holding company to assume or incur debt without the prior approval of the FSLIC if each of the holding company's subsidiaries is a GAAP-qualified insured institution.