Community Reinvestment Act Regulations, 79529-79531 [2011-32727]

Download as PDF 79529 Rules and Regulations Federal Register Vol. 76, No. 246 Thursday, December 22, 2011 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Parts 25 and 195 [Docket ID OCC–2011–0027] RIN 1557–AD60 FEDERAL RESERVE SYSTEM 12 CFR Part 228 [Regulation BB; Docket No. R–1437] FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 345 RIN 3064–AD90 Community Reinvestment Act Regulations Office of the Comptroller of the Currency, Treasury (OCC); Board of Governors of the Federal Reserve System (Board); and Federal Deposit Insurance Corporation (FDIC). ACTION: Joint final rule; technical amendment. AGENCIES: The OCC, the Board, and the FDIC (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, 2012. FOR FURTHER INFORMATION CONTACT: OCC: Margaret Hesse, Special Counsel, Community and Consumer Law Division, (202) 874–5750; or Brian Borkowicz, National Bank Examiner, jlentini on DSK4TPTVN1PROD with RULES SUMMARY: VerDate Mar<15>2010 16:24 Dec 21, 2011 Jkt 226001 Compliance Policy Division, (202) 874–4428, Office of the Comptroller of the Currency, 250 E Street SW., Washington, DC 20219. Board: Celeste Anderson, Senior Supervisory Consumer Financial Services Analyst, (202) 452–2677; or Nikita Pastor, 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 Depositor and Consumer Protection, Supervisory 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. 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), 195.12(u)(2), 228.12(u)(2), and 345.12(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 (Aug. 2, 2005). As explained in the SUPPLEMENTARY INFORMATION section of these agencies’ proposed rule, this particular index is used in other federal lending regulations such as the Home Mortgage Disclosure Act (HMDA). 70 FR 12148 (Mar. 22, 2007). See 12 U.S.C. 2808; 12 CFR 203.2(e)(1). On March 22, 2007, and effective July 1, 2007, the Office of Thrift Supervision (OTS), the agency responsible for regulating savings associations, adopted an annual adjustment formula consistent with that of the other federal banking agencies in PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 its CRA rule set forth at 12 CFR 563e. 72 FR 13429. Pursuant to the DoddFrank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act),1 and effective July 21, 2011, rulemaking authority for federal and state savings associations was transferred from the OTS to OCC, and the OCC subsequently republished, at 12 CFR 195, the CRA regulations applicable to those institutions.2 In addition, the DoddFrank Act transferred responsibility for supervision of savings and loan holding companies and their non-depository subsidiaries from the OTS to the Board, and the Board subsequently amended its CRA regulation to reflect this transfer of supervision authority.3 The threshold for small banks and small savings associations was revised most recently effective January 1, 2011 (75 FR 82217 (Dec. 30, 2010)). The CRA regulations, effective January 1, 2011, provide that banks and savings associations that, as of December 31 of either of the prior two calendar years, had assets of less than $1.122 billion are ‘‘small banks’’ or ‘‘small savings associations.’’ Small banks and 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.’’ 12 CFR 25.12(u)(1), 195.12(u)(1), 228.12(u)(1), and 345.12(u)(1). This joint final rule further revises these thresholds. During the period ending November 2011, the CPIW increased by 3.43 percent. As a result, the agencies are revising 12 CFR 25.12(u)(1), 195.12(u)(1), 228.12(u)(1), and 345.12(u)(1) to make this annual adjustment. Beginning January 1, 2012, banks and savings associations that, as of December 31 of either of the prior two calendar years, had assets of less than $1.160 billion are ‘‘small banks’’ or ‘‘small savings associations.’’ Small banks or small savings associations with assets of at least $290 million as of December 31 of both of the prior two calendar years and less than $1.160 billion as of December 31 of either of the 1 Public Law 111–203, 124 Stat. 1376 (2010). OCC interim final rule, 76 FR 48950 (Aug. 9, 2011). 3 See Board interim final rule, 76 FR 56508 (Sept. 13, 2011). 2 See E:\FR\FM\22DER1.SGM 22DER1 79530 Federal Register / Vol. 76, No. 246 / Thursday, December 22, 2011 / Rules and Regulations 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 http:// www.ffiec.gov/cra/. jlentini on DSK4TPTVN1PROD with RULES 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), 195.12(u)(1), 228.12(u)(1), and 345.12(u)(1) are amended by adjusting the asset-size thresholds as provided for in §§ 25.12(u)(2), 195.12(u)(2), 228.12(u)(2), and 345.12(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, 2012. 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 VerDate Mar<15>2010 16:24 Dec 21, 2011 Jkt 226001 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. 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 195 Community development, Credit, Investments, Reporting and recordkeeping requirements, Savings associations. 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. Fmt 4700 12 CFR Chapter I For the reasons discussed in the section, 12 CFR parts 25 and 195 are amended as follows: SUPPLEMENTARY INFORMATION PART 25—COMMUNITY REINVESTMENT ACT AND INTERSTATE DEPOSIT PRODUCTION REGULATIONS 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 2908, and 3101 through 3111. 2. Revise § 25.12(u)(1) to read as follows: ■ § 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 $1.160 billion. Intermediate small bank means a small bank with assets of at least $290 million as of December 31 of both of the prior two calendar years and less than $1.160 billion as of December 31 of either of the prior two calendar years. * * * * * PART 195—COMMUNITY REINVESTMENT 3. The authority citation for part 195 continues to read as follows: Community development, Credit, Investments, National banks, Reporting and recordkeeping requirements. Frm 00002 Office of the Comptroller of the Currency ■ 12 CFR Part 25 PO 00000 Department of the Treasury Sfmt 4700 Authority: 12 U.S.C. 1462a, 1463, 1464, 1814, 1816, 1828(c), 2901 through 2908, and 5412(b)(2)(B). 4. Revise § 195.12(u)(1) to read as follows: ■ § 195.12 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 $1.160 billion. Intermediate small savings association means a small savings association with assets of at least $290 million as of December 31 of both of the prior two calendar years and less than $1.160 billion as of December 31 of either of the prior two calendar years. * * * * * E:\FR\FM\22DER1.SGM 22DER1 Federal Register / Vol. 76, No. 246 / Thursday, December 22, 2011 / Rules and Regulations Federal Reserve System 12 CFR Chapter II For the reasons set forth in the SUPPLEMENTARY INFORMATION section, 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) 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. 2. Revise § 228.12(u)(1) to read as follows: ■ § 228.12 $1.160 billion as of December 31 of either of the prior two calendar years. * * * * * Dated: December 13, 2011. 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 16, 2011. Robert deV. Frierson, Deputy Secretary of the Board. By order of the Board of Directors. Dated at Washington, DC, this 13th day of December, 2011. Federal Deposit Insurance Corporation. Valerie J. Best, Assistant Executive Secretary. [FR Doc. 2011–32727 Filed 12–21–11; 8:45 am] 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 $1.160 billion. Intermediate small bank means a small bank with assets of at least $290 million as of December 31 of both of the prior two calendar years and less than $1.160 billion as of December 31 of either of the prior two calendar years. * * * * * Federal Deposit Insurance Corporation BILLING CODE 4810–33–6210–01–6714–01–P NATIONAL CREDIT UNION ADMINISTRATION 12 CFR Part 704 RIN 3133–AD95 Corporate Credit Unions National Credit Union Administration (NCUA). ACTION: Final rule. AGENCY: NCUA is issuing final amendments to its rule governing corporate credit unions (corporates). The final amendments make technical corrections to and clarify certain provisions of the rule. The amendments: delete the definition of ‘‘daily average net risk-weighted assets’’; revise the definition of ‘‘net assets’’ to exclude Central Liquidity Facility (CLF) stock subscriptions; clarify certain requirements regarding investment action plans; clarify the weighted average life (WAL) tests; revise the consequences of WAL violations; substitute the term ‘‘core capital’’ for the phrase ‘‘the sum of retained earnings and paid-in capital’’; correct a section heading; and correct a model form instruction. SUMMARY: 12 CFR Chapter III Authority and Issuance For the reasons set forth in the section, 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: SUPPLEMENTARY INFORMATION PART 345—COMMUNITY REINVESTMENT 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). 2. Revise § 345.12(u)(1) to read as follows: DATES: § 345.12 FOR FURTHER INFORMATION CONTACT: Definitions. jlentini on DSK4TPTVN1PROD with RULES * * * * * (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 $1.160 billion. Intermediate small bank means a small bank with assets of at least $290 million as of December 31 of both of the prior two calendar years and less than VerDate Mar<15>2010 16:24 Dec 21, 2011 Jkt 226001 This rule is effective January 23, 2012. Lisa Henderson, Staff Attorney, Office of General Counsel, at (703) 518–6540; or David Shetler, Deputy Director, Office of Corporate Credit Unions, at (703) 518– 6640. You may also contact them at the National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314. SUPPLEMENTARY INFORMATION: PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 79531 A. Background and Specific Amendments B. Regulatory Procedures A. Background and Specific Amendments Why is NCUA adopting this rule? On August 29, 2011, the NCUA Board (Board) issued a Notice of Proposed Rulemaking (NPRM) containing several amendments to its corporate rule at 12 CFR part 704. 76 FR 54991 (Sept. 6, 2011). NCUA received seven comments on the NPRM, most of which favored the proposed changes. For the reasons discussed below, the NCUA Board is adopting the amendments almost exactly as proposed. Section 704.2 Definition of ‘‘daily average net risk-weighted assets’’ The term ‘‘daily average net riskweighted assets’’ was used in a 2009 proposal to revise part 704, 74 FR 65210, 65261 (Dec. 9, 2009), but not in the 2010 final rule, 75 FR 64786, 64831 (Oct. 20, 2010). The term was mistakenly left in the part 704 definitions section, and the Board proposed deleting it in the NPRM. All of the commenters who addressed the proposed change supported it. Accordingly, the Board is deleting the definition of ‘‘daily average net riskweighted assets’’ from § 704.2. Section 704.2 Definition of ‘‘net assets’’ Section 704.2 defines ‘‘net assets,’’ in relevant part, as ‘‘total assets less loans guaranteed by the NCUSIF and member reverse repurchase transactions.’’ The NPRM amended the definition to also exclude CLF stock subscriptions, based on the asset’s negligible credit risk and to facilitate corporate support of the CLF. Corporate support is essential to the CLF remaining a back-up liquidity provider for natural person credit unions. One commenter objected to the proposed change, arguing that it would artificially inflate the leverage ratio for corporates. The Board disagrees. CLF stock is in the nature of a pass-through account, and including it in net assets incorrectly overstates a corporate’s balance sheet. The commenter also argued that credit unions do not need to obtain liquidity through the CLF, as they can become members of the Federal Home Loan Bank (FHLB) system or access the Federal Reserve System’s Discount Window (Discount Window). The Board believes that the CLF provides a critical dimension of additional liquidity coverage for credit unions. Presently, only 4.5 percent of federally insured credit unions report having filed an application to borrow E:\FR\FM\22DER1.SGM 22DER1

Agencies

[Federal Register Volume 76, Number 246 (Thursday, December 22, 2011)]
[Rules and Regulations]
[Pages 79529-79531]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-32727]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
week.

========================================================================


Federal Register / Vol. 76, No. 246 / Thursday, December 22, 2011 / 
Rules and Regulations

[[Page 79529]]



DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Parts 25 and 195

[Docket ID OCC-2011-0027]
RIN 1557-AD60

FEDERAL RESERVE SYSTEM

12 CFR Part 228
[Regulation BB; Docket No. R-1437]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 345

RIN 3064-AD90


Community Reinvestment Act Regulations

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

ACTION: Joint final rule; technical amendment.

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

SUMMARY: The OCC, the Board, and the FDIC (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, 2012.

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: Celeste Anderson, Senior Supervisory Consumer Financial Services 
Analyst, (202) 452-2677; or Nikita Pastor, 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 Depositor and 
Consumer Protection, Supervisory 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.

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), 
195.12(u)(2), 228.12(u)(2), and 345.12(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 (Aug. 2, 
2005). As explained in the SUPPLEMENTARY INFORMATION section of these 
agencies' proposed rule, this particular index is used in other federal 
lending regulations such as the Home Mortgage Disclosure Act (HMDA). 70 
FR 12148 (Mar. 22, 2007). See 12 U.S.C. 2808; 12 CFR 203.2(e)(1). On 
March 22, 2007, and effective July 1, 2007, the Office of Thrift 
Supervision (OTS), the agency responsible for regulating savings 
associations, adopted an annual adjustment formula consistent with that 
of the other federal banking agencies in its CRA rule set forth at 12 
CFR 563e. 72 FR 13429. Pursuant to the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (Dodd-Frank Act),\1\ and effective July 21, 
2011, rulemaking authority for federal and state savings associations 
was transferred from the OTS to OCC, and the OCC subsequently 
republished, at 12 CFR 195, the CRA regulations applicable to those 
institutions.\2\ In addition, the Dodd-Frank Act transferred 
responsibility for supervision of savings and loan holding companies 
and their non-depository subsidiaries from the OTS to the Board, and 
the Board subsequently amended its CRA regulation to reflect this 
transfer of supervision authority.\3\
---------------------------------------------------------------------------

    \1\ Public Law 111-203, 124 Stat. 1376 (2010).
    \2\ See OCC interim final rule, 76 FR 48950 (Aug. 9, 2011).
    \3\ See Board interim final rule, 76 FR 56508 (Sept. 13, 2011).
---------------------------------------------------------------------------

    The threshold for small banks and small savings associations was 
revised most recently effective January 1, 2011 (75 FR 82217 (Dec. 30, 
2010)). The CRA regulations, effective January 1, 2011, provide that 
banks and savings associations that, as of December 31 of either of the 
prior two calendar years, had assets of less than $1.122 billion are 
``small banks'' or ``small savings associations.'' Small banks and 
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.'' 12 CFR 25.12(u)(1), 195.12(u)(1), 228.12(u)(1), and 
345.12(u)(1). This joint final rule further revises these thresholds.
    During the period ending November 2011, the CPIW increased by 3.43 
percent. As a result, the agencies are revising 12 CFR 25.12(u)(1), 
195.12(u)(1), 228.12(u)(1), and 345.12(u)(1) to make this annual 
adjustment. Beginning January 1, 2012, banks and savings associations 
that, as of December 31 of either of the prior two calendar years, had 
assets of less than $1.160 billion are ``small banks'' or ``small 
savings associations.'' Small banks or small savings associations with 
assets of at least $290 million as of December 31 of both of the prior 
two calendar years and less than $1.160 billion as of December 31 of 
either of the

[[Page 79530]]

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 http://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), 195.12(u)(1), 228.12(u)(1), and 345.12(u)(1) are 
amended by adjusting the asset-size thresholds as provided for in 
Sec. Sec.  25.12(u)(2), 195.12(u)(2), 228.12(u)(2), and 345.12(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, 2012. 
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.

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 195

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

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

    For the reasons discussed in the SUPPLEMENTARY INFORMATION section, 
12 CFR parts 25 and 195 are 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 2908, 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 $1.160 billion. Intermediate small bank means a small bank 
with assets of at least $290 million as of December 31 of both of the 
prior two calendar years and less than $1.160 billion as of December 31 
of either of the prior two calendar years.
* * * * *

PART 195--COMMUNITY REINVESTMENT

0
3. The authority citation for part 195 continues to read as follows:

    Authority:  12 U.S.C. 1462a, 1463, 1464, 1814, 1816, 1828(c), 
2901 through 2908, and 5412(b)(2)(B).
0
4. Revise Sec.  195.12(u)(1) to read as follows:


Sec.  195.12  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 $1.160 
billion. Intermediate small savings association means a small savings 
association with assets of at least $290 million as of December 31 of 
both of the prior two calendar years and less than $1.160 billion as of 
December 31 of either of the prior two calendar years.
* * * * *

[[Page 79531]]

Federal Reserve System

12 CFR Chapter II

    For the reasons set forth in the SUPPLEMENTARY INFORMATION section, 
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.


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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 $1.160 billion. Intermediate small bank means a small bank 
with assets of at least $290 million as of December 31 of both of the 
prior two calendar years and less than $1.160 billion as of December 31 
of either of the prior two calendar years.
* * * * *

Federal Deposit Insurance Corporation

12 CFR Chapter III

Authority and Issuance

    For the reasons set forth in the SUPPLEMENTARY INFORMATION section, 
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).

    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 $1.160 billion. Intermediate small bank means a small bank 
with assets of at least $290 million as of December 31 of both of the 
prior two calendar years and less than $1.160 billion as of December 31 
of either of the prior two calendar years.
* * * * *

    Dated: December 13, 2011.
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 16, 2011.
Robert deV. Frierson,
Deputy Secretary of the Board.
    By order of the Board of Directors.
    Dated at Washington, DC, this 13th day of December, 2011.
Federal Deposit Insurance Corporation.
Valerie J. Best,
Assistant Executive Secretary.
[FR Doc. 2011-32727 Filed 12-21-11; 8:45 am]
BILLING CODE 4810-33-6210-01-6714-01-P