Assessment of Fees, 38769-38772 [2014-16017]

Download as PDF Federal Register / Vol. 79, No. 131 / Wednesday, July 9, 2014 / Rules and Regulations amendment corrects the final rule by making the conforming change. Rulemaking Procedure Under the Administrative Procedure Act (5 U.S.C. 553(b)), an agency may waive the normal notice and comment requirements if it finds, for good cause, that they are impracticable, unnecessary, or contrary to the public interest. As authorized by 5 U.S.C. 553(b)(3)(B), the NRC finds good cause to waive notice and opportunity for comment on the amendments because they will have no substantive impact and are of a minor and administrative nature dealing with corrections to certain CFR sections related only to management, organization, procedure, and practice. Specifically, these amendments are to make a conforming change to the regulations to comply with a mandatory statutory requirement. These amendments do not require action by any person or entity regulated by the NRC. Also, this document does not change the substantive responsibilities of any person or entity regulated by the NRC. Furthermore, for the reasons stated, the NRC finds, in accordance with 5 U.S.C. 553(d)(3), that good cause exists to make this rule effective upon publication of this notice. List of Subjects in 10 CFR Part 140 Criminal penalties, Extraordinary nuclear occurrence, Insurance, Intergovernmental relations, Nuclear materials, Nuclear power plants and reactors, Reporting and recordkeeping requirements. For the reasons set out in the preamble and under the authority of the Atomic Energy Act of 1954, as amended; the Energy Reorganization Act of 1974, as amended; and 5 U.S.C. 552 and 553, the NRC is adopting the following correcting amendments to 10 CFR part 140. PART 140—FINANCIAL PROTECTION REQUIREMENTS AND INDEMNITY AGREEMENTS 1. The authority citation for part 140 continues to read as follows: emcdonald on DSK67QTVN1PROD with RULES ■ Authority: Atomic Energy Act secs. 161, 170, 223, 234 (42 U.S.C. 2201, 2210, 2273, 2282); Energy Reorganization Act secs. 201, as amended, 202 (42 U.S.C. 5841, 5842); Government Paperwork Elimination Act sec. 1704 (44 U.S.C. 3504 note); Energy Policy Act of 2005, Pub. L. 109–58, 119 Stat. 594 (2005). 2. Revise the introductory text of § 140.21 to read as follows: ■ § 140.21 Licensee guarantees of payment of deferred premiums. Each licensee required to have and maintain financial protection for each VerDate Mar<15>2010 16:31 Jul 08, 2014 Jkt 232001 nuclear reactor as determined in § 140.11(a)(4) shall at the issuance of the license and annually, on the anniversary of the date on which the indemnity agreement is effective, provide evidence to the Commission that it maintains one of the following types of guarantee of payment of deferred premium in the amount specified in § 140.11(a)(4) for each reactor it is licensed to operate: * * * * * Dated at Rockville, Maryland, this 2nd day of July, 2014. For the Nuclear Regulatory Commission. Cindy Bladey, Chief, Rules, Announcements, and Directives Branch. Office of Administration. [FR Doc. 2014–15985 Filed 7–8–14; 8:45 am] BILLING CODE 7590–01–P DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Part 8 [Docket ID. OCC–2014–0009] RIN 1557–AD82 Assessment of Fees Office of the Comptroller of the Currency, Treasury. ACTION: Final rule. AGENCY: The Office of the Comptroller of the Currency (OCC) is adopting a final rule to increase assessments for national banks and Federal savings associations (FSAs) with assets of more than $40 billion. The increase will range between 0.32 percent and approximately 14 percent, depending on the total assets of the institution as reflected in its June 30, 2014, Consolidated Report of Condition and Income (Call Report). The average increase in assessments for affected banks and FSAs will be 12 percent. The final rule will not increase assessments for banks or FSAs with $40 billion or less in total assets. The OCC will implement the increase in assessments by issuing an amended Notice of Office of the Comptroller of the Currency Fees and Assessments (Notice of Fees), which will become effective as of the semiannual assessment due on September 30, 2014. In conjunction with the increase in assessments, the final rule updates the OCC’s assessment rule to conform with section 318 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the DoddFrank Act), which reaffirmed the authority of the Comptroller of the SUMMARY: PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 38769 Currency (the Comptroller) to set the amount of, and methodology for, assessments. The final rule also makes technical and conforming changes to the assessment rule. DATES: Effective August 8, 2014. FOR FURTHER INFORMATION CONTACT: Gary Crane, Deputy Chief Financial Officer, Financial Management, (202) 649–5540, or Mitchell Plave, Special Counsel, or Henry Barkhausen, Attorney, Legislative and Regulatory Activities Division, (202) 649–5490, for persons who are deaf or hard of hearing, TTY, (202) 649– 5597. SUPPLEMENTARY INFORMATION: I. Background The National Bank Act 1 and the Home Owners’ Loan Act 2 authorize the Comptroller to recover the costs of the OCC’s operations through assessments, fees, and other charges on national banks and FSAs.3 The Comptroller sets assessments, fees, and other charges to meet the OCC’s expenses in carrying out its supervisory activities.4 In setting assessments, the Comptroller has broad authority to consider variations among institutions, including the nature and scope of the activities of the entity, the amount and type of assets that the entity holds, the financial and managerial condition of the entity, and any other factor the Comptroller determines is appropriate.5 The OCC collects assessments from national banks and FSAs in accordance with 12 CFR part 8. Under part 8, the base assessment for banks and FSAs is calculated using a table with eleven categories, or brackets, each of which comprises a range of asset-size values. The assessment for each bank and FSA is the sum of a base amount, which is the same for every national bank and FSA in its asset-size bracket, plus a marginal amount, which is computed by applying a marginal assessment rate to the amount in excess of the lower boundary of the asset-size bracket.6 The marginal assessment rate declines as asset size increases, reflecting economies of scale in bank examination and supervision. The OCC’s annual Notice of Fees sets forth the marginal assessment rates applicable to each asset-size bracket for 1 Revised Statutes of the United States, Title LXII, 12 U.S.C. 1 et seq. 2 The Home Owners’ Loan Act, 12 U.S.C. 1461 et seq. 3 12 U.S.C. 16, 481, 482, 1467. 4 12 U.S.C. 16, 482. 5 12 U.S.C. 16. See also 12 U.S.C. 1467 (providing that the Comptroller has the authority to recover costs of examination of FSAs ‘‘as the Comptroller deems necessary or appropriate.’’). 6 12 CFR 8.2(a). E:\FR\FM\09JYR1.SGM 09JYR1 38770 Federal Register / Vol. 79, No. 131 / Wednesday, July 9, 2014 / Rules and Regulations each year, as well as other assessment components and fees.7 Under part 8, the OCC may adjust the marginal rates to account for inflation.8 The OCC may issue an interim or amended Notice of Fees if the Comptroller determines that it is necessary to meet the OCC’s supervisory obligations.9 In recent years, marginal assessment rates for most national banks have been relatively stable.10 Since the enactment of the Dodd-Frank Act,11 however, the OCC’s responsibilities have expanded and changed in several important ways. These include assuming responsibility for the supervision of FSAs and the need to devote appropriate resources to the implementation of the Dodd-Frank Act, as well as supervising compliance with its requirements. The Dodd-Frank Act and other post-crisis reforms have also increased the level and complexity of OCC supervisory activities, especially with respect to large institutions. We have recently reviewed the marginal rates applicable to national banks and FSAs with over $40 billion in assets and believe that an adjustment beyond an increase for inflation is appropriate in light of our increased supervisory responsibilities. emcdonald on DSK67QTVN1PROD with RULES II. Description of the Proposed Rule and Comments Received Increase in marginal rates. The OCC published a proposed rule in the Federal Register on April 28, 2014 to amend 12 CFR part 8 and increase assessments through an amended Notice of Fees.12 The proposal called for the marginal assessment rate for banks and FSAs with more than $40 billion in assets to increase by 14.5 percent, beginning September 30, 2014. Under the proposal, the effective increase in assessments for banks and FSAs with more than $40 billion in assets would range from 0.32 percent to 14 percent, depending on the total assets of the institution as reflected on its June 30, 7 12 CFR 8.8(a) (providing for the Notice of Fees). Under part 8, the OCC also collects assessments from Federal branches and Federal agencies. 8 12 CFR 8.2(a)(4). 9 12 CFR 8.8(b). 10 The marginal rates on the assets of large banks and FSAs in excess of $40 billion in asset size were not increased between 1995 and 2013. In the 1994 Notice of Fees, the OCC increased the marginal rates for all asset brackets, including the bracket that applied to assets above $40 billion. From 1995 through 2013, the marginal rate for that asset bracket did not increase. The OCC first assessed FSAs in 2011, after the functions of the Office of Thrift Supervision (OTS) were assigned to the OCC under the Dodd-Frank Act. Since September 2012, the OCC has applied the same assessment schedule to national banks and FSAs. Therefore, when the OCC implemented full inflation indexation in 2014, that adjustment applied to FSAs. 11 Pub. L. 111–203, 124 Stat. 1376 (2010). 12 79 FR 23297 (April 28, 2014). VerDate Mar<15>2010 16:31 Jul 08, 2014 Jkt 232001 2014, Call Report, with an average increase in assessments for affected banks and FSAs of 12 percent. As proposed, the rule would not increase assessment rates for banks and FSAs with $40 billion or less in total assets. Most banks and FSAs have assets of $40 billion or less and, therefore, would not be affected by the increase in assessments. The proposed increase in marginal assessment rates primarily reflects changes in the OCC’s supervisory responsibilities arising out of the DoddFrank Act, which generally requires additional OCC supervisory resources for large banks and FSAs. The proposed increase for large banks and FSAs also reflects the fact the OCC did not raise marginal rates on the assets of large banks and FSAs in excess of $40 billion between 1995 and 2013.13 In addition, the proposed increase for large banks and FSAs represents a relatively small percentage of return on assets (ROA) that the increase in assessments would represent for these institutions. Finally, the proposal reflects the OCC’s supervisory judgment that a rate increase would strain the limited resources of community banks and FSAs and would be unwarranted for these smaller institutions, in light of the fact that many of the OCC’s enhanced responsibilities are directed toward large institutions. Conforming amendments to part 8. The proposal included a conforming amendment to 12 CFR part 8 to make it consistent with the proposed increase in assessments and an amendment to part 8 to add a reference to section 318 of the Dodd-Frank Act, which reaffirmed the Comptroller’s broad discretion to set assessments and to determine the assessment methodology. The proposal also included an update to 12 CFR 8.8 to reflect the current title of the Notice of Fees. Comments on the proposed rule. The OCC received two comments on the proposed rule. The first commenter, a trade association for community banks, supported the proposed rule and commended the OCC for focusing the increase in assessments on large banks and FSAs. In this commenter’s opinion, it is appropriate for larger and more complex banks and FSAs to bear the burden of the higher assessments, given that the supervision of those institutions, particularly with respect to Dodd-Frank Act implementation, is 13 The OCC did not increase the marginal rates for FSAs after the OCC became the supervisor of those entities on July 21, 2011, although the actual assessment rates for particular FSAs may have increased or decreased when the OCC applied the OCC’s assessment structure to FSAs. PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 more resource intensive than supervision of community banks. The commenter also stated that a rate increase for community banks would strain the limited resources of those institutions. The second commenter, a trade association for midsize banks, which the commenter defined as banks with between $10 billion and $50 billion in assets, agreed that the proposed increase in assessments focused appropriately on large banks and FSAs, but urged the OCC to make changes to the final rule. Specifically, the commenter suggested that the threshold for the increase in assessments be raised from $40 billion to $50 billion to avoid raising assessments for banks the commenter considers midsize. The commenter also suggested that the OCC consider alternative metrics for assessments, such as the complexity of a bank or FSA’s operations, and the costs of regulatory compliance, particularly with the DoddFrank Act, as a percentage of a bank’s ROA. The OCC will consider whether these alternative metrics would be appropriate components of the assessment structure in future reviews of the assessment system. The final rule retains the $40 billion threshold for the assessment increase for several reasons. First, banks and FSAs with more than $40 billion in assets typically have complex banking operations and therefore require significant supervisory resources.14 Second, the assessment increase for banks and FSAs between $40 billion and $50 billion is relatively small, with a range of .20% for a $41 billion asset institution to 1.77% for a $50 billion asset institution.15 This is because, with asset-size brackets, fees increase with asset size. Third, the great majority of midsize banks and FSAs has assets 14 The commenter notes that some rulemakings required by the Dodd-Frank Act, including the OCC’s stress testing rule, use a $50 billion asset threshold, and therefore suggests that the $50 billion threshold apply to the assessments increase. The OCC, however, has not treated the $50 billion threshold as the only basis for dividing midsize and large institutions. The OCC divides supervision into three programs (community, midsize, and large) and the divisions among these programs are based only partially on size. Some institutions with less than $50 billion in assets are classified as large while some institutions with more than $50 billion are classified as midsize, with the classification based on the complexity of the institution and other factors. The assessment fee schedule (with eleven asset brackets) reflects this more graduated distinction, rather than a hard $50 billion distinction between large and midsize banks and FSAs. 15 The proposed rule provided a table of proposed assessment increases by sample asset size. See 79 FR at 23299. The increase in assessments for a specific institution within this range depends on the total assets of the institution. E:\FR\FM\09JYR1.SGM 09JYR1 Federal Register / Vol. 79, No. 131 / Wednesday, July 9, 2014 / Rules and Regulations under $40 billion, and therefore will not be affected by the assessment increase.16 For these reasons, the OCC continues to view the $40 billion threshold as an appropriate proxy for increased supervisory costs and an appropriate threshold for increased assessments. III. Description of the Final Rule The final rule adopts the proposed increase to marginal rates without change. Under the final rule, marginal assessment rates for national banks and FSAs with assets of more than $40 billion will increase by 14.5 percent and will be effective for the assessment due on September 30, 2014. Marginal rates for banks and FSAs with $40 billion or 38771 less in assets will remain the same as set out in the 2014 Notice of Fees, published on December 12, 2013. The final rule continues the OCC’s present assessment methodology and does not change the asset bracket table in 12 CFR 8.2(a). The revised marginal rates for national banks and FSAs with over $40 billion in assets are reflected in the following table: REVISED GENERAL ASSESSMENT FEE SCHEDULE If the amount of total balance-sheet assets (consolidated domestic and foreign subsidiaries) is (millions): The semiannual assessment will be: This amount Over Column A $0 2 20 100 200 1,000 2,000 6,000 20,000 40,000 250,000 Column D Column E $2 20 100 200 1,000 2,000 6,000 20,000 40,000 250,000 .......................................... The final rule amends 12 CFR part 8 to make it consistent with the proposal to increase the marginal assessment rates. Specifically, the final rule revises 12 CFR 8.2(a)(4) to recognize that the OCC may increase the marginal rates in amounts that exceed the rate of inflation, as under the current proposal. In addition, the final rule revises 12 CFR 8.2 to reflect section 318 of the DoddFrank Act, which reaffirmed the Comptroller’s broad discretion to set assessments and to determine the assessment methodology. The final rule also updates 12 CFR 8.8 to make a technical change to reflect the current title of the notice of fees. IV. Regulatory Analysis Paperwork Reduction Act emcdonald on DSK67QTVN1PROD with RULES Of excess over (millions) Column C Column B Plus But not over Under the Paperwork Reduction Act (PRA) (44 U.S.C. 3501–3520), the OCC may not conduct or sponsor, and a person is not required to respond to, an information collection unless the information collection displays a valid Office of Management and Budget (OMB) control number. This final rule amends part 8, which has an approved information collection under the PRA (OMB Control No. 1557–0223). The final rule does not introduce any new collections of information, nor does it amend part 8 in a way that modifies the $ 5,997 5,997 10,258 25,408 37,717 121,041 206,259 509,255 1,411,611 2,382,671 10,349,260 collection of information that OMB has approved. Therefore, no PRA submission to OMB is required. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq., requires generally that, in connection with a rulemaking, an agency prepare and make available for public comment a regulatory flexibility analysis that describes the impact of a rule on small entities. However, the regulatory flexibility analysis otherwise required under the RFA is not required if an agency certifies that the rule will not have a significant economic impact on a substantial number of small entities (defined in regulations promulgated by the Small Business Administration (SBA) to include banking organizations with total assets of less than or equal to $500 million) and publishes its certification and a brief explanatory statement in the Federal Register together with the rule. As of December 31, 2013, the OCC supervised 1,741 banks (1,135 commercial banks, 66 trust companies, 492 Federal savings associations, and 48 branches or agencies of foreign banks). Approximately 1,231 of OCC-supervised institutions are small entities based on the SBA’s definition of small entities for RFA purposes. As discussed in the 0.000000000 0.000236725 0.000189379 0.000123092 0.000104156 0.000085218 0.000075749 0.000064454 0.000048553 0.000037936 0.000037556 SUPPLEMENTARY INFORMATION above, the increase in assessments will only affect institutions with more than $40 billion in total assets. As such, pursuant to section 605(b) of the RFA, the OCC certifies that this final rule will not have a significant economic impact on a substantial number of small entities. Unfunded Mandates Reform Act The OCC has analyzed the final rule under the factors in the Unfunded Mandates Reform Act of 1995 (UMRA) (2 U.S.C. 1532). Under this analysis, the OCC considered whether the final rule includes 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 (adjusted annually for inflation). The OCC has determined that this final rule will not result in expenditures by State, local, and tribal governments, or the private sector, of $100 million or more in any one year. Accordingly, this final rule is not subject to section 202 of the Unfunded Mandates Act. Section 302 of the Riegle Community Development and Regulatory Improvement Act Section 302 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 16 The number of OCC-supervised institutions in the $40 and $50 billion asset range is small. VerDate Mar<15>2010 16:31 Jul 08, 2014 Jkt 232001 PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 $0 2 20 100 200 1,000 2,000 6,000 20,000 40,000 250,000 E:\FR\FM\09JYR1.SGM 09JYR1 38772 Federal Register / Vol. 79, No. 131 / Wednesday, July 9, 2014 / Rules and Regulations 4802) requires that, subject to certain exceptions, regulations issued by the Federal banking agencies that impose additional reporting, disclosure, or other requirements on insured depository institutions, take effect on the first day of the calendar after publication of the final rule. This effective date requirement does not apply if the issuing agency finds for good cause that the regulation should become effective before such time. 12 U.S.C. 4802. The OCC finds there is good cause for this final rule to become effective before the first day of a calendar quarter. The basis for this finding is that the final rule does not impose any new reporting or disclosure burdens on banks and FSAs. While certain banks and FSAs will pay a higher assessment, the additional assessment does not require any changes to systems or procedures. For these reasons, the final rule will become effective on August 8, 2014. of the entity, and any other factor the Comptroller of the Currency determines is appropriate, as provided by 12 U.S.C. 16. The semiannual assessment will be calculated as follows: * * * * * (4) Each year, the OCC may index the marginal rates in Column D to adjust for the percent change in the level of prices, as measured by changes in the Gross Domestic Product Implicit Price Deflator (GDPIPD) for each June-to-June period. The OCC may at its discretion adjust marginal rates by amounts other than the percentage change in the GDPIPD. The OCC will also adjust the amounts in Column C to reflect any change made to the marginal rate. * * * * * ■ 3. Section 8.8 is revised to read as follows: List of Subjects in 12 CFR Part 8 Assessments, National banks, Savings associations, Reporting and recordkeeping requirements. (a) December notice of fees. A ‘‘Notice of Office of the Comptroller of the Currency Fees and Assessments’’ (Notice of Fees) shall be published no later than the first business day in December of each year for fees to be charged by the OCC during the upcoming year. These fees will be effective January 1 of that upcoming year. (b) Interim and amended notice of fees. The OCC may issue a notice of ‘‘Interim Office of the Comptroller of the Currency Fees and Assessments’’ or a notice of ‘‘Amended Office of the Comptroller of the Currency Fees and Assessments’’ from time to time throughout the year as necessary. Interim or amended notices will be effective 30 days after issuance. History Dated: July 2, 2014. Thomas J. Curry, Comptroller of the Currency. The Rule Authority and Issuance For the reasons set forth in the preamble, the OCC amends 12 CFR part 8 as follows: PART 8—ASSESSMENT OF FEES 1. The authority citation for part 8 continues to read as follows: ■ Authority: 12 U.S.C. 16, 93a, 481, 482, 1467, 1831c, 1867, 3102, 3108, and 5412(b)(1)(B); and 15 U.S.C. 78c and 78l. 2. Section 8.2 is amended by revising paragraphs (a) introductory text (preceding the table) and (a)(4) to read as follows: ■ emcdonald on DSK67QTVN1PROD with RULES § 8.2 Semiannual assessment. (a) Each national bank and each Federal savings association shall pay to the Comptroller of the Currency a semiannual assessment fee, due by March 31 and September 30 of each year, for the six-month period beginning on January 1 and July 1 before each payment date. The Comptroller of the Currency will calculate the amount due under this section and provide a notice of assessments to each national bank and each Federal savings association no later than 7 business days prior to collection on March 31 and September 30 of each year. In setting assessments, the Comptroller of the Currency may take into account the nature and scope of the activities of a national bank or Federal savings association, the amount and type of assets that the entity holds, the financial and managerial condition VerDate Mar<15>2010 16:31 Jul 08, 2014 Jkt 232001 § 8.8 Notice of Comptroller of the Currency Fees. [FR Doc. 2014–16017 Filed 7–8–14; 8:45 am] BILLING CODE P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 71 [Docket No. FAA–2013–0859; Airspace Docket No. 13–AWA–4] RIN 2120–AA66 Modification of Class B Airspace; Salt Lake City, UT Federal Aviation Administration (FAA), DOT. ACTION: Final rule. AGENCY: PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 This action amends the description of Area C and Area O of the Salt Lake City Class B airspace area by raising the floor of a small portion of Class B airspace between the Salt Lake City Class B surface area and the Hill Air Force Base (AFB) Class D airspace area. This action raises the Class B airspace floor in the northeast corner of Area C from 6,000 feet mean seal level (MSL) to 7,500 feet MSL, and redefines the new boundary segment using the power lines underlying the area. This action enhances the safety and flow of Visual Flight Rules (VFR) aircraft transitioning north and south through the Salt Lake Valley over Interstate 15. SUMMARY: Effective Date: 0901 UTC, October 16, 2014. The Director of the Federal Register approves this incorporation by reference action under 1 CFR part 51, subject to the annual revision of FAA Order 7400.9 and publication of conforming amendments. DATES: FOR FURTHER INFORMATION CONTACT: Colby Abbott, Airspace Policy and Regulations Group, Office of Airspace Services, Federal Aviation Administration, 800 Independence Avenue SW., Washington, DC 20591; telephone: (202) 267–8783. SUPPLEMENTARY INFORMATION: On December 19, 2013, the FAA published in the Federal Register a notice of proposed rulemaking (NPRM) to modify areas C and O of the Salt Lake City, UT, Class B airspace area (78 FR 76781). Interested parties were invited to participate in this rulemaking effort by submitting written comments on the proposal. No comments were received in response to the NPRM. The FAA is amending Title 14 of the Code of Federal Regulations (14 CFR) part 71 by modifying the Salt Lake City Class B airspace area. This action raises the floor of a portion of Class B airspace in the northeast corner of Area C from 6,000 feet MSL to 7,500 feet MSL. The portion of Class B airspace raised lies northeast of the power lines running northwest and southeast under Area C and is incorporated into the description of Area O, which has a 7,500 foot MSL Class B airspace floor. The power lines under Area C are used to visually define the new shared boundary between Area C and Area O in that area. These modifications enhance the safety and flow of VFR aircraft transitioning north and south in the Salt Lake Valley by following I–15, while continuing to support containment of large turbine- E:\FR\FM\09JYR1.SGM 09JYR1

Agencies

[Federal Register Volume 79, Number 131 (Wednesday, July 9, 2014)]
[Rules and Regulations]
[Pages 38769-38772]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-16017]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 8

[Docket ID. OCC-2014-0009]
RIN 1557-AD82

Assessment of Fees

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Final rule.

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

SUMMARY: The Office of the Comptroller of the Currency (OCC) is
adopting a final rule to increase assessments for national banks and
Federal savings associations (FSAs) with assets of more than $40
billion. The increase will range between 0.32 percent and approximately
14 percent, depending on the total assets of the institution as
reflected in its June 30, 2014, Consolidated Report of Condition and
Income (Call Report). The average increase in assessments for affected
banks and FSAs will be 12 percent. The final rule will not increase
assessments for banks or FSAs with $40 billion or less in total assets.
The OCC will implement the increase in assessments by issuing an
amended Notice of Office of the Comptroller of the Currency Fees and
Assessments (Notice of Fees), which will become effective as of the
semiannual assessment due on September 30, 2014. In conjunction with
the increase in assessments, the final rule updates the OCC's
assessment rule to conform with section 318 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (the Dodd-Frank Act), which
reaffirmed the authority of the Comptroller of the Currency (the
Comptroller) to set the amount of, and methodology for, assessments.
The final rule also makes technical and conforming changes to the
assessment rule.

DATES: Effective August 8, 2014.

FOR FURTHER INFORMATION CONTACT: Gary Crane, Deputy Chief Financial
Officer, Financial Management, (202) 649-5540, or Mitchell Plave,
Special Counsel, or Henry Barkhausen, Attorney, Legislative and
Regulatory Activities Division, (202) 649-5490, for persons who are
deaf or hard of hearing, TTY, (202) 649-5597.

SUPPLEMENTARY INFORMATION:

I. Background

The National Bank Act \1\ and the Home Owners' Loan Act \2\
authorize the Comptroller to recover the costs of the OCC's operations
through assessments, fees, and other charges on national banks and
FSAs.\3\ The Comptroller sets assessments, fees, and other charges to
meet the OCC's expenses in carrying out its supervisory activities.\4\
In setting assessments, the Comptroller has broad authority to consider
variations among institutions, including the nature and scope of the
activities of the entity, the amount and type of assets that the entity
holds, the financial and managerial condition of the entity, and any
other factor the Comptroller determines is appropriate.\5\
---------------------------------------------------------------------------

\1\ Revised Statutes of the United States, Title LXII, 12 U.S.C.
1 et seq.
\2\ The Home Owners' Loan Act, 12 U.S.C. 1461 et seq.
\3\ 12 U.S.C. 16, 481, 482, 1467.
\4\ 12 U.S.C. 16, 482.
\5\ 12 U.S.C. 16. See also 12 U.S.C. 1467 (providing that the
Comptroller has the authority to recover costs of examination of
FSAs ``as the Comptroller deems necessary or appropriate.'').
---------------------------------------------------------------------------

The OCC collects assessments from national banks and FSAs in
accordance with 12 CFR part 8. Under part 8, the base assessment for
banks and FSAs is calculated using a table with eleven categories, or
brackets, each of which comprises a range of asset-size values. The
assessment for each bank and FSA is the sum of a base amount, which is
the same for every national bank and FSA in its asset-size bracket,
plus a marginal amount, which is computed by applying a marginal
assessment rate to the amount in excess of the lower boundary of the
asset-size bracket.\6\ The marginal assessment rate declines as asset
size increases, reflecting economies of scale in bank examination and
supervision.
---------------------------------------------------------------------------

\6\ 12 CFR 8.2(a).
---------------------------------------------------------------------------

The OCC's annual Notice of Fees sets forth the marginal assessment
rates applicable to each asset-size bracket for

[[Page 38770]]

each year, as well as other assessment components and fees.\7\ Under
part 8, the OCC may adjust the marginal rates to account for
inflation.\8\ The OCC may issue an interim or amended Notice of Fees if
the Comptroller determines that it is necessary to meet the OCC's
supervisory obligations.\9\
---------------------------------------------------------------------------

\7\ 12 CFR 8.8(a) (providing for the Notice of Fees). Under part
8, the OCC also collects assessments from Federal branches and
Federal agencies.
\8\ 12 CFR 8.2(a)(4).
\9\ 12 CFR 8.8(b).
---------------------------------------------------------------------------

In recent years, marginal assessment rates for most national banks
have been relatively stable.\10\ Since the enactment of the Dodd-Frank
Act,\11\ however, the OCC's responsibilities have expanded and changed
in several important ways. These include assuming responsibility for
the supervision of FSAs and the need to devote appropriate resources to
the implementation of the Dodd-Frank Act, as well as supervising
compliance with its requirements. The Dodd-Frank Act and other post-
crisis reforms have also increased the level and complexity of OCC
supervisory activities, especially with respect to large institutions.
We have recently reviewed the marginal rates applicable to national
banks and FSAs with over $40 billion in assets and believe that an
adjustment beyond an increase for inflation is appropriate in light of
our increased supervisory responsibilities.
---------------------------------------------------------------------------

\10\ The marginal rates on the assets of large banks and FSAs in
excess of $40 billion in asset size were not increased between 1995
and 2013. In the 1994 Notice of Fees, the OCC increased the marginal
rates for all asset brackets, including the bracket that applied to
assets above $40 billion. From 1995 through 2013, the marginal rate
for that asset bracket did not increase. The OCC first assessed FSAs
in 2011, after the functions of the Office of Thrift Supervision
(OTS) were assigned to the OCC under the Dodd-Frank Act. Since
September 2012, the OCC has applied the same assessment schedule to
national banks and FSAs. Therefore, when the OCC implemented full
inflation indexation in 2014, that adjustment applied to FSAs.
\11\ Pub. L. 111-203, 124 Stat. 1376 (2010).
---------------------------------------------------------------------------

II. Description of the Proposed Rule and Comments Received

Increase in marginal rates. The OCC published a proposed rule in
the Federal Register on April 28, 2014 to amend 12 CFR part 8 and
increase assessments through an amended Notice of Fees.\12\ The
proposal called for the marginal assessment rate for banks and FSAs
with more than $40 billion in assets to increase by 14.5 percent,
beginning September 30, 2014. Under the proposal, the effective
increase in assessments for banks and FSAs with more than $40 billion
in assets would range from 0.32 percent to 14 percent, depending on the
total assets of the institution as reflected on its June 30, 2014, Call
Report, with an average increase in assessments for affected banks and
FSAs of 12 percent. As proposed, the rule would not increase assessment
rates for banks and FSAs with $40 billion or less in total assets. Most
banks and FSAs have assets of $40 billion or less and, therefore, would
not be affected by the increase in assessments.
---------------------------------------------------------------------------

\12\ 79 FR 23297 (April 28, 2014).
---------------------------------------------------------------------------

The proposed increase in marginal assessment rates primarily
reflects changes in the OCC's supervisory responsibilities arising out
of the Dodd-Frank Act, which generally requires additional OCC
supervisory resources for large banks and FSAs. The proposed increase
for large banks and FSAs also reflects the fact the OCC did not raise
marginal rates on the assets of large banks and FSAs in excess of $40
billion between 1995 and 2013.\13\ In addition, the proposed increase
for large banks and FSAs represents a relatively small percentage of
return on assets (ROA) that the increase in assessments would represent
for these institutions. Finally, the proposal reflects the OCC's
supervisory judgment that a rate increase would strain the limited
resources of community banks and FSAs and would be unwarranted for
these smaller institutions, in light of the fact that many of the OCC's
enhanced responsibilities are directed toward large institutions.
---------------------------------------------------------------------------

\13\ The OCC did not increase the marginal rates for FSAs after
the OCC became the supervisor of those entities on July 21, 2011,
although the actual assessment rates for particular FSAs may have
increased or decreased when the OCC applied the OCC's assessment
structure to FSAs.
---------------------------------------------------------------------------

Conforming amendments to part 8. The proposal included a conforming
amendment to 12 CFR part 8 to make it consistent with the proposed
increase in assessments and an amendment to part 8 to add a reference
to section 318 of the Dodd-Frank Act, which reaffirmed the
Comptroller's broad discretion to set assessments and to determine the
assessment methodology. The proposal also included an update to 12 CFR
8.8 to reflect the current title of the Notice of Fees.
Comments on the proposed rule. The OCC received two comments on the
proposed rule. The first commenter, a trade association for community
banks, supported the proposed rule and commended the OCC for focusing
the increase in assessments on large banks and FSAs. In this
commenter's opinion, it is appropriate for larger and more complex
banks and FSAs to bear the burden of the higher assessments, given that
the supervision of those institutions, particularly with respect to
Dodd-Frank Act implementation, is more resource intensive than
supervision of community banks. The commenter also stated that a rate
increase for community banks would strain the limited resources of
those institutions.
The second commenter, a trade association for midsize banks, which
the commenter defined as banks with between $10 billion and $50 billion
in assets, agreed that the proposed increase in assessments focused
appropriately on large banks and FSAs, but urged the OCC to make
changes to the final rule. Specifically, the commenter suggested that
the threshold for the increase in assessments be raised from $40
billion to $50 billion to avoid raising assessments for banks the
commenter considers midsize. The commenter also suggested that the OCC
consider alternative metrics for assessments, such as the complexity of
a bank or FSA's operations, and the costs of regulatory compliance,
particularly with the Dodd-Frank Act, as a percentage of a bank's ROA.
The OCC will consider whether these alternative metrics would be
appropriate components of the assessment structure in future reviews of
the assessment system.
The final rule retains the $40 billion threshold for the assessment
increase for several reasons. First, banks and FSAs with more than $40
billion in assets typically have complex banking operations and
therefore require significant supervisory resources.\14\ Second, the
assessment increase for banks and FSAs between $40 billion and $50
billion is relatively small, with a range of .20% for a $41 billion
asset institution to 1.77% for a $50 billion asset institution.\15\
This is because, with asset-size brackets, fees increase with asset
size. Third, the great majority of midsize banks and FSAs has assets

[[Page 38771]]

under $40 billion, and therefore will not be affected by the assessment
increase.\16\ For these reasons, the OCC continues to view the $40
billion threshold as an appropriate proxy for increased supervisory
costs and an appropriate threshold for increased assessments.
---------------------------------------------------------------------------

\14\ The commenter notes that some rulemakings required by the
Dodd-Frank Act, including the OCC's stress testing rule, use a $50
billion asset threshold, and therefore suggests that the $50 billion
threshold apply to the assessments increase. The OCC, however, has
not treated the $50 billion threshold as the only basis for dividing
midsize and large institutions. The OCC divides supervision into
three programs (community, midsize, and large) and the divisions
among these programs are based only partially on size. Some
institutions with less than $50 billion in assets are classified as
large while some institutions with more than $50 billion are
classified as midsize, with the classification based on the
complexity of the institution and other factors. The assessment fee
schedule (with eleven asset brackets) reflects this more graduated
distinction, rather than a hard $50 billion distinction between
large and midsize banks and FSAs.
\15\ The proposed rule provided a table of proposed assessment
increases by sample asset size. See 79 FR at 23299. The increase in
assessments for a specific institution within this range depends on
the total assets of the institution.
\16\ The number of OCC-supervised institutions in the $40 and
$50 billion asset range is small.
---------------------------------------------------------------------------

III. Description of the Final Rule

The final rule adopts the proposed increase to marginal rates
without change. Under the final rule, marginal assessment rates for
national banks and FSAs with assets of more than $40 billion will
increase by 14.5 percent and will be effective for the assessment due
on September 30, 2014. Marginal rates for banks and FSAs with $40
billion or less in assets will remain the same as set out in the 2014
Notice of Fees, published on December 12, 2013. The final rule
continues the OCC's present assessment methodology and does not change
the asset bracket table in 12 CFR 8.2(a). The revised marginal rates
for national banks and FSAs with over $40 billion in assets are
reflected in the following table:

Revised General Assessment Fee Schedule
----------------------------------------------------------------------------------------------------------------
If the amount of total balance-sheet assets The semiannual assessment will be:
(consolidated domestic and foreign -------------------------------------------------------------------
subsidiaries) is (millions): This amount Plus Of excess over
------------------------------------------------------------------------------------------- (millions)
Over But not over ---------------------
--------------------------------------------- Column C Column D
Column A Column B Column E
----------------------------------------------------------------------------------------------------------------
$ 0 $ 2 $ 5,997 0.000000000 $ 0
2 20 5,997 0.000236725 2
20 100 10,258 0.000189379 20
100 200 25,408 0.000123092 100
200 1,000 37,717 0.000104156 200
1,000 2,000 121,041 0.000085218 1,000
2,000 6,000 206,259 0.000075749 2,000
6,000 20,000 509,255 0.000064454 6,000
20,000 40,000 1,411,611 0.000048553 20,000
40,000 250,000 2,382,671 0.000037936 40,000
250,000 ..................... 10,349,260 0.000037556 250,000
----------------------------------------------------------------------------------------------------------------

The final rule amends 12 CFR part 8 to make it consistent with the
proposal to increase the marginal assessment rates. Specifically, the
final rule revises 12 CFR 8.2(a)(4) to recognize that the OCC may
increase the marginal rates in amounts that exceed the rate of
inflation, as under the current proposal. In addition, the final rule
revises 12 CFR 8.2 to reflect section 318 of the Dodd-Frank Act, which
reaffirmed the Comptroller's broad discretion to set assessments and to
determine the assessment methodology. The final rule also updates 12
CFR 8.8 to make a technical change to reflect the current title of the
notice of fees.

IV. Regulatory Analysis

Paperwork Reduction Act

Under the Paperwork Reduction Act (PRA) (44 U.S.C. 3501-3520), the
OCC may not conduct or sponsor, and a person is not required to respond
to, an information collection unless the information collection
displays a valid Office of Management and Budget (OMB) control number.
This final rule amends part 8, which has an approved information
collection under the PRA (OMB Control No. 1557-0223). The final rule
does not introduce any new collections of information, nor does it
amend part 8 in a way that modifies the collection of information that
OMB has approved. Therefore, no PRA submission to OMB is required.

Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq.,
requires generally that, in connection with a rulemaking, an agency
prepare and make available for public comment a regulatory flexibility
analysis that describes the impact of a rule on small entities.
However, the regulatory flexibility analysis otherwise required under
the RFA is not required if an agency certifies that the rule will not
have a significant economic impact on a substantial number of small
entities (defined in regulations promulgated by the Small Business
Administration (SBA) to include banking organizations with total assets
of less than or equal to $500 million) and publishes its certification
and a brief explanatory statement in the Federal Register together with
the rule.
As of December 31, 2013, the OCC supervised 1,741 banks (1,135
commercial banks, 66 trust companies, 492 Federal savings associations,
and 48 branches or agencies of foreign banks). Approximately 1,231 of
OCC-supervised institutions are small entities based on the SBA's
definition of small entities for RFA purposes. As discussed in the
SUPPLEMENTARY INFORMATION above, the increase in assessments will only
affect institutions with more than $40 billion in total assets. As
such, pursuant to section 605(b) of the RFA, the OCC certifies that
this final rule will not have a significant economic impact on a
substantial number of small entities.

Unfunded Mandates Reform Act

The OCC has analyzed the final rule under the factors in the
Unfunded Mandates Reform Act of 1995 (UMRA) (2 U.S.C. 1532). Under this
analysis, the OCC considered whether the final rule includes 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 (adjusted annually for inflation). The
OCC has determined that this final rule will not result in expenditures
by State, local, and tribal governments, or the private sector, of $100
million or more in any one year. Accordingly, this final rule is not
subject to section 202 of the Unfunded Mandates Act.

Section 302 of the Riegle Community Development and Regulatory
Improvement Act

Section 302 of the Riegle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C.

[[Page 38772]]

4802) requires that, subject to certain exceptions, regulations issued
by the Federal banking agencies that impose additional reporting,
disclosure, or other requirements on insured depository institutions,
take effect on the first day of the calendar after publication of the
final rule. This effective date requirement does not apply if the
issuing agency finds for good cause that the regulation should become
effective before such time. 12 U.S.C. 4802.
The OCC finds there is good cause for this final rule to become
effective before the first day of a calendar quarter. The basis for
this finding is that the final rule does not impose any new reporting
or disclosure burdens on banks and FSAs. While certain banks and FSAs
will pay a higher assessment, the additional assessment does not
require any changes to systems or procedures. For these reasons, the
final rule will become effective on August 8, 2014.

List of Subjects in 12 CFR Part 8

Assessments, National banks, Savings associations, Reporting and
recordkeeping requirements.

Authority and Issuance

For the reasons set forth in the preamble, the OCC amends 12 CFR
part 8 as follows:

PART 8--ASSESSMENT OF FEES

0
1. The authority citation for part 8 continues to read as follows:

Authority: 12 U.S.C. 16, 93a, 481, 482, 1467, 1831c, 1867,
3102, 3108, and 5412(b)(1)(B); and 15 U.S.C. 78c and 78l.

0
2. Section 8.2 is amended by revising paragraphs (a) introductory text
(preceding the table) and (a)(4) to read as follows:

Sec. 8.2 Semiannual assessment.

(a) Each national bank and each Federal savings association shall
pay to the Comptroller of the Currency a semiannual assessment fee, due
by March 31 and September 30 of each year, for the six-month period
beginning on January 1 and July 1 before each payment date. The
Comptroller of the Currency will calculate the amount due under this
section and provide a notice of assessments to each national bank and
each Federal savings association no later than 7 business days prior to
collection on March 31 and September 30 of each year. In setting
assessments, the Comptroller of the Currency may take into account the
nature and scope of the activities of a national bank or Federal
savings association, the amount and type of assets that the entity
holds, the financial and managerial condition of the entity, and any
other factor the Comptroller of the Currency determines is appropriate,
as provided by 12 U.S.C. 16. The semiannual assessment will be
calculated as follows:
* * * * *
(4) Each year, the OCC may index the marginal rates in Column D to
adjust for the percent change in the level of prices, as measured by
changes in the Gross Domestic Product Implicit Price Deflator (GDPIPD)
for each June-to-June period. The OCC may at its discretion adjust
marginal rates by amounts other than the percentage change in the
GDPIPD. The OCC will also adjust the amounts in Column C to reflect any
change made to the marginal rate.
* * * * *
0
3. Section 8.8 is revised to read as follows:

Sec. 8.8 Notice of Comptroller of the Currency Fees.

(a) December notice of fees. A ``Notice of Office of the
Comptroller of the Currency Fees and Assessments'' (Notice of Fees)
shall be published no later than the first business day in December of
each year for fees to be charged by the OCC during the upcoming year.
These fees will be effective January 1 of that upcoming year.
(b) Interim and amended notice of fees. The OCC may issue a notice
of ``Interim Office of the Comptroller of the Currency Fees and
Assessments'' or a notice of ``Amended Office of the Comptroller of the
Currency Fees and Assessments'' from time to time throughout the year
as necessary. Interim or amended notices will be effective 30 days
after issuance.

Dated: July 2, 2014.
Thomas J. Curry,
Comptroller of the Currency.
[FR Doc. 2014-16017 Filed 7-8-14; 8:45 am]
BILLING CODE P

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.