Thrift Charter Enhancement Act of 1988

(Reported to Senate from the Committee on Banking, Housing, and Urban Affairs with amendment, S. Rept. 100-483)

Thrift Charter Enhancement Act of 1988 - Amends the National Housing Act to increase the limit on the aggregate amount of transactions or service agreements allowed between federally insured thrift institutions and their affiliates 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, up to a maximum of $2,000,000 for transactions and $1,000,000 for service agreements.

Defines a "GAAP-qualified insured institution" as an insured institution: (1) whose capital equals or exceeds the greater of five 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 requirement if it: (1) is affiliated due to the acquisition of a failed or failing institution; (2) has capital of not less than zero; (3) has submitted a plan to the FSLIC for increasing capital to at least three percent within four years and the FSLIC has determined such plan to be feasible; and (4) is in compliance with such plan.

Allows a savings and loan holding company to acquire up to five percent of the voting shares of an unaffiliated thrift institution or savings and loan holding company. (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.)

Repeals requirements under the National Housing Act for prior FSLIC approval for interlocking directors of savings and loan holding companies (leaving the Depository Institution Management Interlocks Act of 1978 as the governing statute.)

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