Community Reinvestment Act Regulations, 82217-82219 [2010-32321]

Agencies

• FEDERAL DEPOSIT INSURANCE CORPORATION
• FEDERAL RESERVE SYSTEM
• Office of the Comptroller of the Currency
• DEPARTMENT OF THE TREASURY
• Office of Thrift Supervision
• Comptroller of the Currency

[Federal Register Volume 75, Number 250 (Thursday, December 30, 2010)]
[Rules and Regulations]
[Pages 82217-82219]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32321]



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Rules and Regulations
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Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / 
Rules and Regulations

[[Page 82217]]



DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 25

[Docket ID OCC-2010-0020]
RIN 1557-AD32

FEDERAL RESERVE SYSTEM

12 CFR Part 228

[Regulation BB; Docket No. R-1403]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 345

RIN 3064-AD68

DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Part 563e

[Docket ID OTS-2010-0032]
RIN 1550-AC45


Community Reinvestment Act Regulations

AGENCY: Office of the Comptroller of the Currency, Treasury (OCC); 
Board of Governors of the Federal Reserve System (Board); Federal 
Deposit Insurance Corporation (FDIC); Office of Thrift Supervision, 
Treasury (OTS).

ACTION: Joint final rule; technical amendment.

-----------------------------------------------------------------------

SUMMARY: The OCC, the Board, the FDIC, and the OTS (collectively, the 
``agencies'') are amending their Community Reinvestment Act (CRA) 
regulations to adjust the asset-size thresholds used to define ``small 
bank'' or ``small savings association'' and ``intermediate small bank'' 
or ``intermediate small savings association.'' As required by the CRA 
regulations, the adjustment to the threshold amount is based on the 
annual percentage change in the Consumer Price Index.

DATES: Effective Date: January 1, 2011.

FOR FURTHER INFORMATION CONTACT: OCC: Margaret Hesse, Special Counsel, 
Community and Consumer Law Division, (202) 874-5750; or Brian 
Borkowicz, National Bank Examiner, Compliance Policy Division, (202) 
874-4428, Office of the Comptroller of the Currency, 250 E Street, SW., 
Washington, DC 20219.
    Board: Rebecca Lassman, Supervisory Consumer Financial Services 
Analyst, (202) 452-3946; or Brent Lattin, Counsel, (202) 452-3667, 
Division of Consumer and Community Affairs, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue, NW., 
Washington, DC 20551.
    FDIC: Janet R. Gordon, Senior Policy Analyst, Division of 
Supervision and Consumer Protection, Compliance Policy Branch, (202) 
898-3850; or Susan van den Toorn, Counsel, Legal Division, (202) 898-
8707, Federal Deposit Insurance Corporation, 550 17th Street, NW., 
Washington, DC 20429.
    OTS: Stephanie M. Caputo, Senior Compliance Program Analyst, 
Compliance and Consumer Protection, (202) 906-6549; or Richard Bennett, 
Senior Compliance Counsel, Regulations and Legislation Division, (202) 
906-7409, Office of Thrift Supervision, 1700 G Street, NW., Washington, 
DC 20552.

SUPPLEMENTARY INFORMATION:

Background and Description of the Joint Final Rule

    The agencies' CRA regulations establish CRA performance standards 
for small and intermediate small banks and savings associations. The 
regulations define small and intermediate small institutions by 
reference to asset-size criteria expressed in dollar amounts, and they 
further require the agencies to publish annual adjustments to these 
dollar figures based on the year-to-year change in the average of the 
Consumer Price Index for Urban Wage Earners and Clerical Workers 
(CPIW), not seasonally adjusted, for each twelve-month period ending in 
November, with rounding to the nearest million. 12 CFR 25.12(u)(2), 
228.12(u)(2), 345.12(u)(2), and 563e.12(u)(2). This adjustment formula 
was first adopted for CRA purposes by the OCC, Board, and FDIC on 
August 2, 2005, effective September 1, 2005. 70 FR 44256. As explained 
in the preamble to these agencies' proposed rule, this particular index 
is used in other federal lending regulations such as the Home Mortgage 
Disclosure Act (HMDA). See 12 U.S.C. 2808; 12 CFR 203.2(e)(1).
    OTS adopted an annual adjustment to the asset thresholds in its CRA 
rule on March 22, 2007, effective July 1, 2007. 72 FR 13429. As OTS 
explained in the preamble, OTS decided to index the asset thresholds in 
the same way as the other Federal banking agencies to ensure 
consistency between the standards used to evaluate savings associations 
and the standards used to evaluate banks. 72 FR at 13432. OTS also 
noted that the particular adjustment formula adopted is also used under 
HMDA. Id. Thus, it is an indexing method already familiar to both the 
agencies and regulated financial institutions. By adopting an 
adjustment formula consistent with that of the other federal banking 
agencies, OTS acted consistently with section 303 of the Riegle 
Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 
4803), which OTS interpreted as encouraging the federal banking 
agencies to work jointly to make uniform all regulations and guidelines 
implementing common statutory or supervisory policies.
    The threshold for small banks and small savings associations was 
revised most recently effective January 1, 2010 (74 FR 68662 (Dec. 29, 
2009)). The CRA regulations, as revised on December 29, 2009, provide 
that banks and savings associations that, as of December 31 of either 
of the prior two calendar years, had assets of less than $1.098 billion 
are ``small banks'' or ``small savings associations.'' Small banks and 
small savings associations with assets of at least $274 million as of 
December 31 of both of the prior two calendar years and less than 
$1.098 billion as of December 31 of either of the prior two calendar 
years are ``intermediate small banks'' or ``intermediate small savings 
associations.'' 12 CFR 25.12(u)(1), 228.12(u)(1), 345.12(u)(1), and 
563e.12(u)(1). This joint final rule further revises these thresholds.

[[Page 82218]]

    During the period ending November 2010, the CPIW increased by 2.21 
percent. As a result, the agencies are revising 12 CFR 25.12(u)(1), 
228.12(u)(1), 345.12(u)(1), and 563e.12(u)(1) to make this annual 
adjustment. Beginning January 1, 2011, banks and savings associations 
that, as of December 31 of either of the prior two calendar years, had 
assets of less than $1.122 billion are ``small banks'' or ``small 
savings associations.'' Small banks or small savings associations with 
assets of at least $280 million as of December 31 of both of the prior 
two calendar years and less than $1.122 billion as of December 31 of 
either of the prior two calendar years are ``intermediate small banks'' 
or ``intermediate small savings associations.'' The agencies also 
publish current and historical asset-size thresholds on the Web site of 
the Federal Financial Institutions Examination Council at https://www.ffiec.gov/cra/.

Administrative Procedure Act and Effective Date

    Under 5 U.S.C. 553(b)(B) of the Administrative Procedure Act (APA), 
an agency may, for good cause, find (and incorporate the finding and a 
brief statement of reasons therefore in the rules issued) that notice 
and public procedure thereon are impracticable, unnecessary, or 
contrary to the public interest.
    The amendments to the regulations to adjust the asset-size 
thresholds for small and intermediate small banks and savings 
associations result from the application of a formula established by a 
provision in the CRA regulations that the agencies previously published 
for comment. See 70 FR 12148 (Mar. 11, 2005), 70 FR 44256 (Aug. 2, 
2005), 71 FR 67826 (Nov. 24, 2006), and 72 FR 13429 (Mar. 22, 2007). 
Sections 25.12(u)(1), 228.12(u)(1), 345.12(u)(1), and 563e.12(u)(1) are 
amended by adjusting the asset-size thresholds as provided for in 
Sec. Sec.  25.12(u)(2), 228.12(u)(2), 345.12(u)(2), and 563e.12(u)(2).
    Accordingly, since the agencies' rules provide no discretion as to 
the computation or timing of the revisions to the asset-size criteria, 
the agencies have determined that publishing a notice of proposed 
rulemaking and providing opportunity for public comment are 
unnecessary.
    The effective date of this joint final rule is January 1, 2011. 
Under 5 U.S.C. 553(d)(3) of the APA, the required publication or 
service of a substantive rule shall be made not less than 30 days 
before its effective date, except, among other things, as provided by 
the agency for good cause found and published with the rule. Because 
this rule adjusts asset-size thresholds consistent with the procedural 
requirements of the CRA rules, the agencies conclude that it is not 
substantive within the meaning of the APA's delayed effective date 
provision. Moreover, the agencies find that there is good cause for 
dispensing with the delayed effective date requirement, even if it 
applied, because their current rules already provide notice that the 
small and intermediate asset-size thresholds will be adjusted as of 
December 31 based on twelve-month data as of the end of November each 
year.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) does not apply to a rulemaking 
where a general notice of proposed rulemaking is not required. 5 U.S.C. 
603 and 604. As noted previously, the agencies have determined that it 
is unnecessary to publish a general notice of proposed rulemaking for 
this joint final rule. Accordingly, the RFA's requirements relating to 
an initial and final regulatory flexibility analysis do not apply.

Paperwork Reduction Act of 1995

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3506; 5 CFR 1320), the agencies reviewed this final rule. No 
collections of information pursuant to the Paperwork Reduction Act are 
contained in the final rule.

Executive Order 12866

    Pursuant to Executive Order 12866, OMB's Office of Information and 
Regulatory Affairs has designated this final rule to be significant but 
not to have an annual effect on the economy of $100 million or more.

Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 
1532 (Unfunded Mandates Act), requires that an agency must prepare a 
budgetary impact statement before promulgating any final rule for which 
a general notice of proposed rulemaking was published. As discussed 
above, the agencies have determined that the publication of a general 
notice of proposed rulemaking is unnecessary. Accordingly, this joint 
final rule is not subject to section 202 of the Unfunded Mandates Act.

List of Subjects

12 CFR Part 25

    Community development, Credit, Investments, National banks, 
Reporting and recordkeeping requirements.

12 CFR Part 228

    Banks, banking, Community development, Credit, Investments, 
Reporting and recordkeeping requirements.

12 CFR Part 345

    Banks, banking, Community development, Credit, Investments, 
Reporting and recordkeeping requirements.

12 CFR Part 563e

    Community development, Credit, Investments, Reporting and 
recordkeeping requirements, Savings associations.

Department of the Treasury

Office of the Comptroller of the Currency

12 CFR Chapter I

0
For the reasons discussed in the joint preamble, 12 CFR part 25 is 
amended as follows:

PART 25--COMMUNITY REINVESTMENT ACT AND INTERSTATE DEPOSIT 
PRODUCTION REGULATIONS

0
1. The authority citation for part 25 continues to read as follows:

    Authority: 12 U.S.C. 21, 22, 26, 27, 30, 36, 93a, 161, 215, 
215a, 481, 1814, 1816, 1828(c), 1835a, 2901 through 2907, and 3101 
through 3111.
    2. Revise Sec.  25.12(u)(1) to read as follows:


Sec.  25.12  Definitions.

* * * * *
    (u) Small bank--(1) Definition. Small bank means a bank that, as of 
December 31 of either of the prior two calendar years, had assets of 
less than $1.122 billion. Intermediate small bank means a small bank 
with assets of at least $280 million as of December 31 of both of the 
prior two calendar years and less than $1.122 billion as of December 31 
of either of the prior two calendar years.
* * * * *

Federal Reserve System

12 CFR Chapter II

0
For the reasons set forth in the joint preamble, the Board of Governors 
of the Federal Reserve System amends part 228 of chapter II of title 12 
of the Code of Federal Regulations as follows:

[[Page 82219]]

PART 228--COMMUNITY REINVESTMENT (REGULATION BB)

0
1. The authority citation for part 228 continues to read as follows:

    Authority: 12 U.S.C. 321, 325, 1828(c), 1842, 1843, 1844, and 
2901 et seq.

0
2. Revise Sec.  228.12(u)(1) to read as follows:


Sec.  228.12  Definitions.

* * * * *
    (u) Small bank--(1) Definition. Small bank means a bank that, as of 
December 31 of either of the prior two calendar years, had assets of 
less than $1.122 billion. Intermediate small bank means a small bank 
with assets of at least $280 million as of December 31 of both of the 
prior two calendar years and less than $1.122 billion as of December 31 
of either of the prior two calendar years.
* * * * *

Federal Deposit Insurance Corporation

12 CFR Chapter III

Authority and Issuance

0
For the reasons set forth in the joint preamble, the Board of Directors 
of the Federal Deposit Insurance Corporation amends part 345 of chapter 
III of title 12 of the Code of Federal Regulations to read as follows:

PART 345--COMMUNITY REINVESTMENT

0
1. The authority citation for part 345 continues to read as follows:

    Authority:  12 U.S.C. 1814-1817, 1819-1820, 1828, 1831u and 
2901-2907, 3103-3104, and 3108(a).

0
2. Revise Sec.  345.12(u)(1) to read as follows:


Sec.  345.12  Definitions.

* * * * *
    (u) Small bank--(1) Definition. Small bank means a bank that, as of 
December 31 of either of the prior two calendar years, had assets of 
less than $1.122 billion. Intermediate small bank means a small bank 
with assets of at least $280 million as of December 31 of both of the 
prior two calendar years and less than $1.122 billion as of December 31 
of either of the prior two calendar years.
* * * * *

Department of the Treasury

Office of Thrift Supervision

12 CFR Chapter V

0
For the reasons discussed in the joint preamble, 12 CFR part 563e is 
amended as follows:

PART 563e--COMMUNITY REINVESTMENT

0
1. The authority citation for part 563e continues to read as follows:

    Authority:  12 U.S.C. 1462a, 1463, 1464, 1467a, 1814, 1816, 
1828(c), and 2901 through 2907.

0
2. Revise Sec.  563e.12(u)(1) to read as follows:


Sec.  563e.12  Definitions.

* * * * *
    (u) Small savings association--(1) Definition. Small savings 
association means a savings association that, as of December 31 of 
either of the prior two calendar years, had assets of less than $1.122 
billion. Intermediate small savings association means a small savings 
association with assets of at least $280 million as of December 31 of 
both of the prior two calendar years and less than $1.122 billion as of 
December 31 of either of the prior two calendar years.
* * * * *

    Dated: December 7, 2010.
Julie L. Williams,
First Senior Deputy Comptroller and Chief Counsel.

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, December 15, 2010.

Robert deV. Frierson,
Deputy Secretary of the Board.

    By order of the Board of Directors.

    Dated at Washington, DC, this 14th day of December 2010.

Federal Deposit Insurance Corporation.

Valerie J. Best,
Assistant Executive Secretary.
    Dated: December 9, 2010.

    By the Office of Thrift Supervision,

John E. Bowman,
Acting Director.
[FR Doc. 2010-32321 Filed 12-29-10; 8:45 am]
BILLING CODE 6714-01-P, 4810-33-P, 6210-01-P, 6720-01-P