Community Reinvestment Act Regulations, 78335-78337 [06-9944]

Agencies

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

[Federal Register Volume 71, Number 250 (Friday, December 29, 2006)]
[Rules and Regulations]
[Pages 78335-78337]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-9944]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 25

[Docket No. 06-18]
RIN 1557-AD00

FEDERAL RESERVE SYSTEM

12 CFR Part 228

[Regulation BB; Docket No. R-1273]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 345

RIN 3064-AD11


Community Reinvestment Act Regulations

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

ACTION: Joint final rule; technical correction.

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SUMMARY: The OCC, the Board, and the FDIC (collectively, the 
``agencies'') are publishing this joint final rule to reinsert a 
provision that was inadvertently deleted when the agencies revised 
their Community Reinvestment Act (CRA) regulations in August 2005. This 
change is technical only and does not make any substantive revisions. 
The agencies are also amending their CRA regulations to increase the 
asset-size threshold to be used to define ``small bank'' and 
``intermediate small bank.'' The regulation is amended to state the 
increase in the threshold amount based on the annual percentage change 
in the Consumer Price Index.

DATES: Effective January 1, 2007.

FOR FURTHER INFORMATION CONTACT:
    OCC: Margaret Hesse, Special Counsel, Community and Consumer Law 
Division, (202) 874-5750; or Karen Tucker, National Bank Examiner, 
Compliance Division, (202) 874-4428, Office of the Comptroller of the 
Currency, 250 E Street, SW., Washington, DC 20219.
    Board: Anjanette M. Kichline, Senior Supervisory Consumer Financial 
Services Analyst, (202) 785-6054; or Elizabeth A. Eurgubian, Attorney, 
(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: Faye Murphy, Fair Lending Specialist, (202) 898-6613, CRA and 
Fair Lending Policy Section, Division of Supervision and Consumer 
Protection; or Susan van den Toorn, Counsel, Legal Division, (202) 898-
8707, Federal Deposit Insurance Corporation, 550 17th Street, NW., 
Washington, DC 20429.

SUPPLEMENTARY INFORMATION:

Background

    The agencies jointly are amending their regulations at 12 CFR parts 
25, 228, and 345 implementing the CRA (12 U.S.C. 2901 et seq.) to make 
a technical correction related to regulatory changes that became 
effective on September 1, 2005 (70 FR 44256) and to publish an increase 
in the asset-size threshold for small and intermediate small banks as 
required by the regulations. The agencies will publish current and 
historical asset-size thresholds on the Web site of the Federal 
Financial Institutions Examination Council at https://www.ffiec.gov/
cra/.

Description of the Joint Final Rule

    The technical correction published today adds as paragraph (d) to 
Sec. Sec.  25.26, 228.26, and 345.26 a provision stating, ``The 
[agency] rates the performance of a bank evaluated under this section 
as provided in appendix A of this part.'' No change in the evaluation 
or rating of small banks will result from reinserting the provision as 
new paragraph (d). The agencies find it important to make this 
technical correction in order to provide clarification and consistency 
with other similar provisions in parts 25, 228, and 345.
    The agencies' CRA regulations, as revised on September 1, 2005, 
provide that banks that, as of December 31 of either of the prior two 
calendar years, had assets of less than $1 billion are ``small banks.'' 
Small banks with assets of at least $250 million as of December 31 of 
both of the prior two calendar years and less than $1 billion as of 
December 31 of either of the prior two calendar years are 
``intermediate small banks.'' 12 CFR 25.12(u)(1), 228.12(u)(1), and 
345.12(u)(1). The regulations further provide that the agencies will 
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), and 345.12(u)(2).
    During the period ending November 2006, the CPIW increased by 3.32 
percent. As a result, the agencies are revising Sec. Sec.  25.12(u)(1), 
228.12(u)(1), and 345.12(u)(1) to make this annual adjustment. 
Beginning January 1, 2007, banks that, as of December 31 of either of 
the prior two calendar years, had assets of less than $1.033 billion 
are ``small banks.'' Small banks with assets of at least $258 million 
as of December 31 of both of the prior two calendar years and less than 
$1.033 billion as of December 31 of either of the prior two calendar 
years are ``intermediate small banks.''

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 therefor in the rules issued) that notice 
and public procedure thereon are impracticable, unnecessary, or 
contrary to the public interest.
    With regard to the revision adding back the paragraph referring to 
appendix A: Appendix A to the agencies' regulations describes the CRA 
ratings system for each performance test under the regulations and 
provides specific information on what institutions must demonstrate in 
order to achieve a particular rating. Prior to the regulatory changes 
adopted in 2005, each provision in the agencies' regulations describing 
a performance test included a paragraph stating that

[[Page 78336]]

the performance of a bank under that particular test is rated as 
provided in appendix A. In 2005, the agencies revised Sec. Sec.  25.26, 
228.26, and 345.26 and appendix A to include a new performance test for 
banks that meet the definition of ``intermediate small bank.'' In 
adopting the revision, the paragraph in Sec. Sec.  25.26, 228.26, and 
345.26 referring to appendix A inadvertently was deleted. This revision 
adds that paragraph back into the regulations. For these reasons, the 
agencies, for good cause, find that the notice and comment procedures 
prescribed by the APA are unnecessary because the joint final rule is 
making a technical correction without substantive change to the 
provisions of parts 25, 228, and 345.
    With regard to the adjusted asset-size thresholds: The amendments 
to the regulations to adjust the asset-size thresholds for small and 
intermediate small banks are technical. Sections 25.12(u)(1), 
228.12(u)(1), and 345.12(u)(1) are amended by adjusting the asset 
threshold as provided for in Sec. Sec.  25.12(u)(2), 228.12(u)(2), and 
345.12(u)(2). This amendment applies the formula established by the CRA 
regulations for determining adjustments to the small and intermediate 
small bank asset thresholds.
    For these reasons, the agencies have determined that publishing a 
notice of proposed rulemaking and providing opportunity for public 
comment are unnecessary.
    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. The 
agencies find that there is good cause for shortened notice because the 
revisions made by this joint final rule are minor, nonsubstantive, and 
technical. This joint final rule takes effect January 1, 2007.

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 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

    There are no collection of information requirements in this joint 
final rule.

Executive Order 12866

    The OCC has determined that this joint final rule is not a 
significant regulatory action as defined in Executive Order 12866.

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 rule likely to 
result in a Federal mandate that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector of $100 million or more in any one year. If a budgetary 
impact statement is required, section 205 of the Unfunded Mandates Act 
also requires an agency to identify and consider a reasonable number of 
regulatory alternatives before promulgating a rule. The OCC has 
determined that this joint final rule will not result in expenditures 
by State, local, and tribal governments, or by the private sector, of 
$100 million or more in any one year. Accordingly, this joint final 
rule is not subject to section 202 of the Unfunded Mandates Act.

Executive Order 13132

    The OCC has determined that this joint final rule does not have any 
Federalism implications as required by Executive Order 13132.

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.

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.


0
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 $1.033 billion. Intermediate small bank means a small bank 
with assets of at least $258 million as of December 31 of both of the 
prior two calendar years and less than $1.033 billion as of December 31 
of either of the prior two calendar years.
* * * * *

0
3. Add Sec.  25.26(d) to read as follows:


Sec.  25.26  Small bank performance standards.

* * * * *
    (d) Small bank performance rating. The OCC rates the performance of 
a bank evaluated under this section as provided in appendix A of this 
part.

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:

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 $1.033 billion. Intermediate small bank means a small bank 
with assets of at least $258 million as of December 31 of both of the 
prior two calendar years and less than $1.033 billion as of December 31 
of either of the prior two calendar years.
* * * * *

[[Page 78337]]


0
3. Add Sec.  228.26(d) to read as follows:


Sec.  228.26  Small bank performance standards.

* * * * *
    (d) Small bank performance rating. The Board rates the performance 
of a bank evaluated under this section as provided in appendix A of 
this part.

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 $1.033 billion. Intermediate small bank means a small bank 
with assets of at least $258 million as of December 31 of both of the 
prior two calendar years and less than $1.033 billion as of December 31 
of either of the prior two calendar years.
* * * * *

0
3. Add Sec.  345.26(d) to read as follows:


Sec.  345.26  Small bank performance standards.

* * * * *
    (d) Small bank performance rating. The FDIC rates the performance 
of a bank evaluated under this section as provided in appendix A of 
this part.

    Dated: December 15, 2006.
Julie L. Williams,
First Senior Deputy Comptroller and Chief Counsel.

    By order of the Board of Governors of the Federal Reserve 
System, December 19, 2006.
Jennifer J. Johnson,
Secretary of the Board.

    Dated at Washington, DC, this 18th day of December, 2006.


    By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 06-9944 Filed 12-28-06; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P