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]


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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.

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