Community Reinvestment Act Regulations, 66601-66604 [2018-27791]
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66601
Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations
PENALTIES APPLICABLE TO FEDERAL SAVINGS ASSOCIATIONS—Continued
U.S. Code Citation
Maximum
Penalty
Amount
(in Dollars) 1
CMP Description
12 U.S.C. 1818(i)(2) 3 ..............................
12 U.S.C. 1820(k)(6)(A)(ii) ......................
12 U.S.C. 1832(c) ...................................
12 U.S.C. 1884 ........................................
12 U.S.C. 1972(2)(F) ...............................
15 U.S.C. 78u–2(b) .................................
15 U.S.C. 1639e(k) .................................
42 U.S.C. 4012a(f)(5) ..............................
Tier 3 ........................................................................................................................
Violation of Law, Unsafe or Unsound Practice, or Breach of Fiduciary Duty
Tier 1 ........................................................................................................................
Tier 2 ........................................................................................................................
Tier 3 ........................................................................................................................
Violation of Post-Employment Restrictions:
Per violation .............................................................................................................
Violation of Withdrawals by Negotiable or Transferable Instruments for Transfers
to Third Parties:
Per violation .............................................................................................................
Violation of the Bank Protection Act ........................................................................
Violation of Provisions regarding Correspondent Accounts, Unsafe or Unsound
Practices, or Breach of Fiduciary Duty:.
Tier 1 ........................................................................................................................
Tier 2 ........................................................................................................................
Tier 3 ........................................................................................................................
Violations of Various Provisions of the Securities Act, the Securities Exchange
Act, the Investment Company Act, or the Investment Advisers Act:
1st Tier (natural person)—Per violation ..................................................................
1st Tier (other person)—Per violation .....................................................................
2nd Tier (natural person)—Per violation .................................................................
2nd Tier (other person)—Per violation ....................................................................
3rd Tier (natural person)—Per violation ..................................................................
3rd Tier (other person)—Per violation .....................................................................
Violation of Appraisal Independence Requirements:
First violation ............................................................................................................
Subsequent violations ..............................................................................................
Flood Insurance:
Per violation .............................................................................................................
2 2,013,399
10,067
50,334
2 2,013,399
331,174
2,658
292
10,067
50,334
2 2,013,399
9,472
94,713
94,713
473,566
189,427
947,130
11,563
23,125
2,187
1 The
maximum penalty amount is per day, unless otherwise indicated.
2 The maximum penalty amount for a federal savings association is the lesser of this amount or 1 percent of total assets.
3 These amounts also apply to statutes that cross-reference 12 U.S.C. 1818, such as 12 U.S.C. 2804, 3108, 3349, 4309, and 4717 and 15
U.S.C. 1607, 1681s, 1691c, and 1692l.
Dated: December 18, 2018.
Bao Nguyen,
Acting Senior Deputy Comptroller and Chief
Counsel, Office of the Comptroller of the
Currency.
[FR Doc. 2018–27784 Filed 12–26–18; 8:45 am]
ACTION:
Office of the Comptroller of the
Currency
SUMMARY:
12 CFR Parts 25 and 195
[Docket ID OCC–2018–0033]
BILLING CODE 4810–33–P
RIN 1557–AE54
FEDERAL RESERVE SYSTEM
12 CFR Part 228
[Regulation BB; Docket No. R–1642]
RIN 7100–AF32
FEDERAL DEPOSIT INSURANCE
CORPORATION
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RIN 3064–AE97
Community Reinvestment Act
Regulations
Office of the Comptroller of the
Currency, Treasury (OCC); Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
AGENCY:
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The OCC, the Board, and the
FDIC (collectively, the Agencies) are
amending their Community
Reinvestment Act (CRA) regulations to
adjust the asset-size thresholds used to
define ‘‘small bank’’ or ‘‘small savings
association’’ and ‘‘intermediate small
bank’’ or ‘‘intermediate small savings
association.’’ As required by the CRA
regulations, the adjustment to the
threshold amount is based on the
annual percentage change in the
Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI–W).
DATES:
Effective Date: January 1, 2019.
FOR FURTHER INFORMATION CONTACT:
12 CFR Part 345
VerDate Sep<11>2014
Joint final rule; technical
amendment.
DEPARTMENT OF THE TREASURY
Sfmt 4700
OCC: Emily Boyes, Senior Attorney or
Daniel Sufranski, Attorney, Chief
Counsel’s Office, (202) 649–5490; for
persons who are deaf or hearing
impaired, TTY, (202) 649–5597; or
Vonda Eanes, Director for CRA and Fair
Lending Policy, Compliance Risk Policy
Division, (202) 649–5470, Office of the
Comptroller of the Currency, 400 7th
Street SW, Washington, DC 20219.
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Board: Amal S. Patel, Counsel, (202)
912–7879, or Cathy Gates, Senior Project
Manager, (202) 452–2099, Division of
Consumer and Community Affairs; or
Clinton N. Chen, Senior Attorney, (202)
452–3952, Legal Division, Board of
Governors of the Federal Reserve
System, 20th Street and Constitution
Avenue NW, Washington, DC 20551.
FDIC: Patience R. Singleton, Senior
Policy Analyst, Supervisory Policy
Branch, Division of Depositor and
Consumer Protection, (202) 898–6859;
or Richard M. Schwartz, Counsel, Legal
Division, (202) 898–7424, Federal
Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
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Background and Description of the
Joint Final Rule
The Agencies’ CRA regulations
establish CRA performance standards
for small and intermediate small banks
and savings associations. The CRA
regulations define small and
intermediate small banks and savings
associations by reference to asset-size
criteria expressed in dollar amounts,
and they further require the Agencies to
publish annual adjustments to these
dollar figures based on the year-to-year
change in the average of the CPI–W, not
seasonally adjusted, for each 12-month
period ending in November, with
rounding to the nearest million. 12 CFR
25.12(u)(2), 195.12(u)(2), 228.12(u)(2),
and 345.12(u)(2). This adjustment
formula was first adopted for CRA
purposes by the OCC, the Board, and the
FDIC on August 2, 2005, effective
September 1, 2005. 70 FR 44256 (Aug.
2, 2005). At that time, the Agencies
noted that the CPI–W is also used in
connection with other federal laws,
such as the Home Mortgage Disclosure
Act. See 12 U.S.C. 2808; 12 CFR 1003.2.
On March 22, 2007, and effective July 1,
2007, the former Office of Thrift
Supervision (OTS), the agency then
responsible for regulating savings
associations, adopted an annual
adjustment formula consistent with that
of the other federal banking agencies in
its CRA rule previously set forth at 12
CFR part 563e. 72 FR 13429 (Mar. 22,
2007).
Pursuant to the Dodd-Frank Wall
Street Reform and Consumer Protection
Act (Dodd-Frank Act),1 effective July 21,
2011, CRA rulemaking authority for
federal and state savings associations
was transferred from the OTS to the
OCC, and the OCC subsequently
republished, at 12 CFR part 195, the
CRA regulations applicable to those
1 Public
Law 111–203, 124 Stat. 1376 (2010).
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institutions.2 In addition, the DoddFrank Act transferred responsibility for
supervision of savings and loan holding
companies and their non-depository
subsidiaries from the OTS to the Board,
and the Board subsequently amended its
CRA regulation to reflect this transfer of
supervisory authority.3
The threshold for small banks and
small savings associations was revised
most recently in December 2017 and
became effective January 1, 2018. 82 FR
61143 (Dec. 27, 2017). The current CRA
regulations provide that banks and
savings associations that, as of
December 31 of either of the prior two
calendar years, had assets of less than
$1.252 billion are small banks or small
savings associations. Small banks and
small savings associations with assets of
at least $313 million as of December 31
of both of the prior two calendar years
and less than $1.252 billion as of
December 31 of either of the prior two
calendar years are intermediate small
banks or intermediate small savings
associations. 12 CFR 25.12(u)(1),
195.12(u)(1), 228.12(u)(1), and
345.12(u)(1). This joint final rule revises
these thresholds.
During the 12-month period ending
November 2018, the CPI–W increased
by 2.59 percent. As a result, the
Agencies are revising 12 CFR
25.12(u)(1), 195.12(u)(1), 228.12(u)(1),
and 345.12(u)(1) to make this annual
adjustment. Beginning January 1, 2019,
banks and savings associations that, as
of December 31 of either of the prior two
calendar years, had assets of less than
$1.284 billion are small banks or small
savings associations. Small banks and
small savings associations with assets of
at least $321 million as of December 31
of both of the prior two calendar years
and less than $1.284 billion as of
December 31 of either of the prior two
calendar years are intermediate small
banks or intermediate small savings
associations. The Agencies also publish
current and historical asset-size
thresholds on the website of the Federal
Financial Institutions Examination
Council at https://www.ffiec.gov/cra/.
Administrative Procedure Act and
Effective Date
Under 5 U.S.C. 553(b)(B) of the
Administrative Procedure Act (APA), an
agency may, for good cause, find (and
incorporate the finding and a brief
statement of reasons therefore in the
rules issued) that notice and public
procedure thereon are impracticable,
2 See OCC interim final rule, 76 FR 48950 (Aug.
9, 2011).
3 See Board interim final rule, 76 FR 56508 (Sept.
13, 2011).
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unnecessary, or contrary to the public
interest.
The amendments to the regulations to
adjust the asset-size thresholds for small
and intermediate small banks and
savings associations result from the
application of a formula established by
a provision in the respective CRA
regulations that the Agencies previously
published for comment. See 70 FR
12148 (Mar. 11, 2005), 70 FR 44256
(Aug. 2, 2005), 71 FR 67826 (Nov. 24,
2006), and 72 FR 13429 (Mar. 22, 2007).
As a result, §§ 25.12(u)(1), 195.12(u)(1),
228.12(u)(1), and 345.12(u)(1) of the
Agencies’ respective CRA regulations
are amended by adjusting the asset-size
thresholds as provided for in
§§ 25.12(u)(2), 195.12(u)(2),
228.12(u)(2), and 345.12(u)(2).
Accordingly, the Agencies’ rules
provide no discretion as to the
computation or timing of the revisions
to the asset-size criteria. For this reason,
the Agencies have determined that
publishing a notice of proposed
rulemaking and providing opportunity
for public comment are unnecessary.
The effective date of this joint final
rule is January 1, 2019. Under 5 U.S.C.
553(d)(3) of the APA, the required
publication or service of a substantive
rule shall be made not less than 30 days
before its effective date, except, among
other things, as provided by the agency
for good cause found and published
with the rule. Because this rule adjusts
asset-size thresholds consistent with the
procedural requirements of the CRA
rules, the Agencies conclude that it is
not substantive within the meaning of
the APA’s delayed effective date
provision. Moreover, the Agencies find
that there is good cause for dispensing
with the delayed effective date
requirement, even if it applied, because
their current rules already provide
notice that the small and intermediate
small asset-size thresholds will be
adjusted as of December 31 based on 12month data as of the end of November
each year.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
does not apply to a rulemaking when a
general notice of proposed rulemaking
is not required. 5 U.S.C. 603 and 604.
As noted previously, the Agencies have
determined that it is unnecessary to
publish a general notice of proposed
rulemaking for this joint final rule.
Accordingly, the RFA’s requirements
relating to an initial and final regulatory
flexibility analysis do not apply.
Paperwork Reduction Act of 1995
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3521) states that no
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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations
agency may conduct or sponsor, nor is
the respondent required to respond to,
an information collection unless it
displays a currently valid Office of
Management and Budget (OMB) control
number. The Agencies have determined
that this final rule does not create any
new, or revise any existing, collections
of information pursuant to the
Paperwork Reduction Act.
Consequently, no information collection
request will be submitted to the OMB
for review.
Unfunded Mandates Reform Act of
1995
1. The authority citation for part 25
continues to read as follows:
■
Authority: 12 U.S.C. 21, 22, 26, 27, 30, 36,
93a, 161, 215, 215a, 481, 1814, 1816, 1828(c),
1835a, 2901 through 2908, and 3101 through
3111.
2. Section 25.12 is amended by
revising paragraph (u)(1) to read as
follows:
■
§ 25.12
Section 202 of the Unfunded
Mandates Reform Act of 1995
(Unfunded Mandates Act), 2 U.S.C.
1532, requires the OCC to prepare a
budgetary impact statement before
promulgating any final rule for which a
general notice of proposed rulemaking
was published. As discussed above, the
OCC has determined that the
publication of a general notice of
proposed rulemaking is unnecessary.
Accordingly, this joint final rule is not
subject to section 202 of the Unfunded
Mandates Act.
List of Subjects
Definitions.
*
*
*
*
*
(u) * * *
(1) Definition. Small bank means a
bank that, as of December 31 of either
of the prior two calendar years, had
assets of less than $1.284 billion.
Intermediate small bank means a small
bank with assets of at least $321 million
as of December 31 of both of the prior
two calendar years and less than $1.284
billion as of December 31 of either of the
prior two calendar years.
*
*
*
*
*
PART 195—COMMUNITY
REINVESTMENT
3. The authority citation for part 195
continues to read as follows:
■
Community development, Credit,
Investments, National banks, Reporting
and recordkeeping requirements.
Authority: 12 U.S.C. 1462a, 1463, 1464,
1814, 1816, 1828(c), 2901 through 2908, and
5412(b)(2)(B).
12 CFR Part 195
■
4. Section 195.12 is amended by
revising paragraph (u)(1) to read as
follows:
§ 195.12
*
*
*
*
(u) * * *
(1) Definition. Small savings
association means a savings association
that, as of December 31 of either of the
prior two calendar years, had assets of
less than $1.284 billion. Intermediate
small savings association means a small
savings association with assets of at
least $321 million as of December 31 of
both of the prior two calendar years and
less than $1.284 billion as of December
31 of either of the prior two calendar
years.
*
*
*
*
*
Banks, Banking, Community
development, Credit, Investments,
Reporting and recordkeeping
requirements.
12 CFR Part 345
Banks, Banking, Community
development, Credit, Investments,
Reporting and recordkeeping
requirements.
Department of the Treasury
Office of the Comptroller of the
Currency
Federal Reserve System
12 CFR Chapter I
For the reasons set forth in the
section, the
Board of Governors of the Federal
Reserve System amends part 228 of
chapter II of title 12 of the Code of
Federal Regulations as follows:
12 CFR Chapter II
SUPPLEMENTARY INFORMATION
For the reasons discussed in the
section, 12
CFR parts 25 and 195 are amended as
follows:
SUPPLEMENTARY INFORMATION
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5. The authority citation for part 228
continues to read as follows:
■
Authority: 12 U.S.C. 321, 325, 1828(c),
1842, 1843, 1844, and 2901 et seq.
6. Section 228.12 is amended by
revising paragraph (u)(1) to read as
follows:
■
§ 228.12
Definitions.
*
*
*
*
*
(u) * * *
(1) Definition. Small bank means a
bank that, as of December 31 of either
of the prior two calendar years, had
assets of less than $1.284 billion.
Intermediate small bank means a small
bank with assets of at least $321 million
as of December 31 of both of the prior
two calendar years and less than $1.284
billion as of December 31 of either of the
prior two calendar years.
*
*
*
*
*
Federal Deposit Insurance Corporation
12 CFR Chapter III
For the reasons set forth in the
section, the
Board of Directors of the Federal
Deposit Insurance Corporation amends
part 345 of chapter III of title 12 of the
Code of Federal Regulations to read as
follows:
SUPPLEMENTARY INFORMATION
PART 345—COMMUNITY
REINVESTMENT
Definitions.
*
12 CFR Part 228
PART 228—COMMUNITY
REINVESTMENT (REGULATION BB)
Authority and Issuance
12 CFR Part 25
Community development, Credit,
Investments, Reporting and
recordkeeping requirements, Savings
associations.
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REINVESTMENT ACT AND
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REGULATIONS
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7. The authority citation for part 345
continues to read as follows:
■
Authority: 12 U.S.C. 1814–1817, 1819–
1820, 1828, 1831u and 2901–2908, 3103–
3104, and 3108(a).
8. Section 345.12 is amended by
revising paragraph (u)(1) to read as
follows:
■
§ 345.12
Definitions.
*
*
*
*
*
(u) * * *
(1) Definition. Small bank means a
bank that, as of December 31 of either
of the prior two calendar years, had
assets of less than $1.284 billion.
Intermediate small bank means a small
bank with assets of at least $321 million
as of December 31 of both of the prior
two calendar years and less than $1.284
billion as of December 31 of either of the
prior two calendar years.
*
*
*
*
*
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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Rules and Regulations
Dated: December 18, 2018.
Bao Nguyen,
Acting Senior Deputy Comptroller and Chief
Counsel.
By order of the Board of Governors of the
Federal Reserve System, acting through the
Secretary of the Board under delegated
authority, December 17, 2018.
Ann E. Misback,
Secretary of the Board.
By order of the Board of Directors.
Dated at Washington, DC, this 13th day of
December, 2018.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2018–27791 Filed 12–26–18; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 30
[Docket ID OCC–2018–0028]
RIN 1557–AE51
OCC Guidelines Establishing
Standards for Recovery Planning by
Certain Large Insured National Banks,
Insured Federal Savings Associations,
and Insured Federal Branches;
Technical Amendments
Office of the Comptroller of the
Currency, Treasury.
ACTION: Final guidelines.
AGENCY:
The Office of the Comptroller
of the Currency (OCC) is amending its
enforceable guidelines relating to
recovery planning standards for insured
national banks, insured federal savings
associations, and insured federal
branches (Guidelines) by increasing the
average total consolidated assets
threshold for applying the Guidelines
from $50 billion to $250 billion. In
addition, the OCC is changing the
Guidelines to decrease from 18 months
to 12 months the time within which a
bank should comply with the
Guidelines after the bank becomes
subject to them. Finally, the OCC is
making technical amendments to
remove outdated compliance dates.
DATES: The final guidelines are effective
on January 28, 2019.
FOR FURTHER INFORMATION CONTACT:
Andra Shuster, Senior Counsel or Rima
Kundnani, Attorney, Chief Counsel’s
Office, (202) 649–5490; or, for persons
who are deaf or hard of hearing, TTY,
(202) 649–5597, 400 7th Street SW,
Washington, DC 20219.
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SUMMARY:
VerDate Sep<11>2014
16:19 Dec 26, 2018
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SUPPLEMENTARY INFORMATION:
I. Background
The 2008 financial crisis provided
valuable lessons about the need for
financial institutions to have strong risk
governance frameworks, including plans
for how to respond to and recover from
the financial effects of severe stress.
This was particularly true for larger,
more complex banks given the potential
they pose for systemic risk. In response
to these lessons, on September 29, 2016,
the OCC published the Guidelines
establishing minimum standards for
recovery planning by insured national
banks, insured federal savings
associations, and insured federal
branches of foreign banks (banks) with
average total consolidated assets 1 equal
to or greater than $50 billion (covered
banks).2 The Guidelines state that a
recovery plan should identify (1)
quantitative or qualitative indicators of
the risk or existence of severe stress that
reflect a covered bank’s particular
vulnerabilities and (2) a wide range of
credible options that a covered bank
could undertake in response to the
stress to restore its financial strength
and viability.
Under the Guidelines, a recovery plan
should also address: (1) Procedures for
escalating decision-making to senior
management or the board of directors,
(2) management reports, and (3)
communication procedures. In addition,
the Guidelines explain how a bank
should calculate its average total
consolidated assets and reserve the
OCC’s authority to apply the Guidelines
to a bank below the $50 billion
threshold if the agency determines a
bank is highly complex or otherwise
presents a heightened risk. Finally, the
Guidelines set out phased-in
compliance dates based on bank size.
II. Description of the Proposal,
Comments Received, and Final
Guidelines
The OCC received three comments on
the proposal. One comment came from
an individual, one from a trade
association (Trade Association
Comment), and the other from four
regional national banks (Banks
Comment).
1 Average total consolidated assets is defined in
the Guidelines and means the average total
consolidated assets of the bank or covered bank as
reported on the bank’s or covered bank’s
Consolidated Reports of Condition and Income for
the four most recent consecutive quarters. See 12
CFR part 30, appendix E, paragraph I.E.1.
2 81 FR 66791 (Sep. 29, 2016). The Guidelines
were issued pursuant to section 39 of the Federal
Deposit Insurance Act, 12 U.S.C. 1831p-1, which
authorizes the OCC to prescribe enforceable safety
and soundness standards.
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Asset Threshold. The OCC noted in
the SUPPLEMENTARY INFORMATION section
of the Guidelines that large, complex
institutions should undertake recovery
planning to be able to respond quickly
to and recover from the financial effects
of severe stress on the institution. Based
on its experience to date in reviewing
recovery plans, the OCC believes that it
is appropriate to raise the threshold for
the Guidelines to focus on those
institutions that present greater risk to
the banking system. These larger, more
complex, or potentially more
interconnected banks present the types
of risks that could benefit most from
having the types of governance and
planning processes that identify and
assist in responding to significant stress
events.
In addition, at the time the Guidelines
were published, the $50 billion recovery
planning threshold was consistent with
the scope of Federal Deposit Insurance
Corporation and Board of Governors of
the Federal Reserve System regulations 3
that require certain entities to prepare
resolution plans under section 165 of
the Dodd-Frank Wall Street Reform and
Consumer Protection Act.4 On May 24,
2018, the Economic Growth, Regulatory
Relief, and Consumer Protection Act
(Act) was enacted to promote economic
growth, provide tailored economic
relief, and enhance consumer
protections.5 Section 401 of the Act
raises from $50 billion to $250 billion
the section 165 resolution planning
threshold.
Accordingly, the OCC proposed to
increase from $50 billion to $250 billion
the average total consolidated assets
threshold at which the Guidelines apply
to banks.6 This change would reduce
the number of covered banks to which
the Guidelines apply from 25 to 8, based
on the most recent data available.
All three of the comments received
addressed the threshold change. The
individual commenter expressed
concern that raising the Guidelines’
asset threshold would provide too much
leniency for banks in light of the 2008
financial crisis. The Trade Association
Comment strongly supported the OCC’s
proposal to raise the threshold for the
Guidelines from $50 billion to $250
billion in average total consolidated
assets because it provides burden relief
to the affected banks and permits the
OCC to allocate its resources over a
smaller number of banks. The Banks
3 See 12 CFR 381.2(f) and 243.2(f), respectively.
See also 12 CFR 360.10.
4 Public Law 111–203, 124 Stat. 1376 (July 21,
2010).
5 Public Law 115–174, 132 Stat. 1296 (May 24,
2018).
6 83 FR 47313 (Sep. 19, 2018).
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Agencies
[Federal Register Volume 83, Number 247 (Thursday, December 27, 2018)]
[Rules and Regulations]
[Pages 66601-66604]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27791]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Parts 25 and 195
[Docket ID OCC-2018-0033]
RIN 1557-AE54
FEDERAL RESERVE SYSTEM
12 CFR Part 228
[Regulation BB; Docket No. R-1642]
RIN 7100-AF32
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 345
RIN 3064-AE97
Community Reinvestment Act Regulations
AGENCY: Office of the Comptroller of the Currency, Treasury (OCC);
Board of Governors of the Federal Reserve System (Board); and Federal
Deposit Insurance Corporation (FDIC).
ACTION: Joint final rule; technical amendment.
-----------------------------------------------------------------------
SUMMARY: The OCC, the Board, and the FDIC (collectively, the Agencies)
are amending their Community Reinvestment Act (CRA) regulations to
adjust the asset-size thresholds used to define ``small bank'' or
``small savings association'' and ``intermediate small bank'' or
``intermediate small savings association.'' As required by the CRA
regulations, the adjustment to the threshold amount is based on the
annual percentage change in the Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI-W).
DATES: Effective Date: January 1, 2019.
FOR FURTHER INFORMATION CONTACT:
OCC: Emily Boyes, Senior Attorney or Daniel Sufranski, Attorney,
Chief Counsel's Office, (202) 649-5490; for persons who are deaf or
hearing impaired, TTY, (202) 649-5597; or Vonda Eanes, Director for CRA
and Fair Lending Policy, Compliance Risk Policy Division, (202) 649-
5470, Office of the Comptroller of the Currency, 400 7th Street SW,
Washington, DC 20219.
[[Page 66602]]
Board: Amal S. Patel, Counsel, (202) 912-7879, or Cathy Gates,
Senior Project Manager, (202) 452-2099, Division of Consumer and
Community Affairs; or Clinton N. Chen, Senior Attorney, (202) 452-3952,
Legal Division, Board of Governors of the Federal Reserve System, 20th
Street and Constitution Avenue NW, Washington, DC 20551.
FDIC: Patience R. Singleton, Senior Policy Analyst, Supervisory
Policy Branch, Division of Depositor and Consumer Protection, (202)
898-6859; or Richard M. Schwartz, Counsel, Legal Division, (202) 898-
7424, Federal Deposit Insurance Corporation, 550 17th Street NW,
Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
Background and Description of the Joint Final Rule
The Agencies' CRA regulations establish CRA performance standards
for small and intermediate small banks and savings associations. The
CRA regulations define small and intermediate small banks and savings
associations by reference to asset-size criteria expressed in dollar
amounts, and they further require the Agencies to publish annual
adjustments to these dollar figures based on the year-to-year change in
the average of the CPI-W, not seasonally adjusted, for each 12-month
period ending in November, with rounding to the nearest million. 12 CFR
25.12(u)(2), 195.12(u)(2), 228.12(u)(2), and 345.12(u)(2). This
adjustment formula was first adopted for CRA purposes by the OCC, the
Board, and the FDIC on August 2, 2005, effective September 1, 2005. 70
FR 44256 (Aug. 2, 2005). At that time, the Agencies noted that the CPI-
W is also used in connection with other federal laws, such as the Home
Mortgage Disclosure Act. See 12 U.S.C. 2808; 12 CFR 1003.2. On March
22, 2007, and effective July 1, 2007, the former Office of Thrift
Supervision (OTS), the agency then responsible for regulating savings
associations, adopted an annual adjustment formula consistent with that
of the other federal banking agencies in its CRA rule previously set
forth at 12 CFR part 563e. 72 FR 13429 (Mar. 22, 2007).
Pursuant to the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act),\1\ effective July 21, 2011, CRA
rulemaking authority for federal and state savings associations was
transferred from the OTS to the OCC, and the OCC subsequently
republished, at 12 CFR part 195, the CRA regulations applicable to
those institutions.\2\ In addition, the Dodd-Frank Act transferred
responsibility for supervision of savings and loan holding companies
and their non-depository subsidiaries from the OTS to the Board, and
the Board subsequently amended its CRA regulation to reflect this
transfer of supervisory authority.\3\
---------------------------------------------------------------------------
\1\ Public Law 111-203, 124 Stat. 1376 (2010).
\2\ See OCC interim final rule, 76 FR 48950 (Aug. 9, 2011).
\3\ See Board interim final rule, 76 FR 56508 (Sept. 13, 2011).
---------------------------------------------------------------------------
The threshold for small banks and small savings associations was
revised most recently in December 2017 and became effective January 1,
2018. 82 FR 61143 (Dec. 27, 2017). The current CRA regulations provide
that banks and savings associations that, as of December 31 of either
of the prior two calendar years, had assets of less than $1.252 billion
are small banks or small savings associations. Small banks and small
savings associations with assets of at least $313 million as of
December 31 of both of the prior two calendar years and less than
$1.252 billion as of December 31 of either of the prior two calendar
years are intermediate small banks or intermediate small savings
associations. 12 CFR 25.12(u)(1), 195.12(u)(1), 228.12(u)(1), and
345.12(u)(1). This joint final rule revises these thresholds.
During the 12-month period ending November 2018, the CPI-W
increased by 2.59 percent. As a result, the Agencies are revising 12
CFR 25.12(u)(1), 195.12(u)(1), 228.12(u)(1), and 345.12(u)(1) to make
this annual adjustment. Beginning January 1, 2019, banks and savings
associations that, as of December 31 of either of the prior two
calendar years, had assets of less than $1.284 billion are small banks
or small savings associations. Small banks and small savings
associations with assets of at least $321 million as of December 31 of
both of the prior two calendar years and less than $1.284 billion as of
December 31 of either of the prior two calendar years are intermediate
small banks or intermediate small savings associations. The Agencies
also publish current and historical asset-size thresholds on the
website of the Federal Financial Institutions Examination Council at
https://www.ffiec.gov/cra/.
Administrative Procedure Act and Effective Date
Under 5 U.S.C. 553(b)(B) of the Administrative Procedure Act (APA),
an agency may, for good cause, find (and incorporate the finding and a
brief statement of reasons therefore in the rules issued) that notice
and public procedure thereon are impracticable, unnecessary, or
contrary to the public interest.
The amendments to the regulations to adjust the asset-size
thresholds for small and intermediate small banks and savings
associations result from the application of a formula established by a
provision in the respective CRA regulations that the Agencies
previously published for comment. See 70 FR 12148 (Mar. 11, 2005), 70
FR 44256 (Aug. 2, 2005), 71 FR 67826 (Nov. 24, 2006), and 72 FR 13429
(Mar. 22, 2007). As a result, Sec. Sec. 25.12(u)(1), 195.12(u)(1),
228.12(u)(1), and 345.12(u)(1) of the Agencies' respective CRA
regulations are amended by adjusting the asset-size thresholds as
provided for in Sec. Sec. 25.12(u)(2), 195.12(u)(2), 228.12(u)(2), and
345.12(u)(2).
Accordingly, the Agencies' rules provide no discretion as to the
computation or timing of the revisions to the asset-size criteria. For
this reason, the Agencies have determined that publishing a notice of
proposed rulemaking and providing opportunity for public comment are
unnecessary.
The effective date of this joint final rule is January 1, 2019.
Under 5 U.S.C. 553(d)(3) of the APA, the required publication or
service of a substantive rule shall be made not less than 30 days
before its effective date, except, among other things, as provided by
the agency for good cause found and published with the rule. Because
this rule adjusts asset-size thresholds consistent with the procedural
requirements of the CRA rules, the Agencies conclude that it is not
substantive within the meaning of the APA's delayed effective date
provision. Moreover, the Agencies find that there is good cause for
dispensing with the delayed effective date requirement, even if it
applied, because their current rules already provide notice that the
small and intermediate small asset-size thresholds will be adjusted as
of December 31 based on 12-month data as of the end of November each
year.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) does not apply to a rulemaking
when a general notice of proposed rulemaking is not required. 5 U.S.C.
603 and 604. As noted previously, the Agencies have determined that it
is unnecessary to publish a general notice of proposed rulemaking for
this joint final rule. Accordingly, the RFA's requirements relating to
an initial and final regulatory flexibility analysis do not apply.
Paperwork Reduction Act of 1995
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) states
that no
[[Page 66603]]
agency may conduct or sponsor, nor is the respondent required to
respond to, an information collection unless it displays a currently
valid Office of Management and Budget (OMB) control number. The
Agencies have determined that this final rule does not create any new,
or revise any existing, collections of information pursuant to the
Paperwork Reduction Act. Consequently, no information collection
request will be submitted to the OMB for review.
Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995 (Unfunded
Mandates Act), 2 U.S.C. 1532, requires the OCC to prepare a budgetary
impact statement before promulgating any final rule for which a general
notice of proposed rulemaking was published. As discussed above, the
OCC has determined that the publication of a general notice of proposed
rulemaking is unnecessary. Accordingly, this joint final rule is not
subject to section 202 of the Unfunded Mandates Act.
List of Subjects
12 CFR Part 25
Community development, Credit, Investments, National banks,
Reporting and recordkeeping requirements.
12 CFR Part 195
Community development, Credit, Investments, Reporting and
recordkeeping requirements, Savings associations.
12 CFR Part 228
Banks, Banking, Community development, Credit, Investments,
Reporting and recordkeeping requirements.
12 CFR Part 345
Banks, Banking, Community development, Credit, Investments,
Reporting and recordkeeping requirements.
Department of the Treasury
Office of the Comptroller of the Currency
12 CFR Chapter I
For the reasons discussed in the SUPPLEMENTARY INFORMATION section,
12 CFR parts 25 and 195 are amended as follows:
PART 25--COMMUNITY REINVESTMENT ACT AND INTERSTATE DEPOSIT
PRODUCTION REGULATIONS
0
1. The authority citation for part 25 continues to read as follows:
Authority: 12 U.S.C. 21, 22, 26, 27, 30, 36, 93a, 161, 215,
215a, 481, 1814, 1816, 1828(c), 1835a, 2901 through 2908, and 3101
through 3111.
0
2. Section 25.12 is amended by revising paragraph (u)(1) to read as
follows:
Sec. 25.12 Definitions.
* * * * *
(u) * * *
(1) Definition. Small bank means a bank that, as of December 31 of
either of the prior two calendar years, had assets of less than $1.284
billion. Intermediate small bank means a small bank with assets of at
least $321 million as of December 31 of both of the prior two calendar
years and less than $1.284 billion as of December 31 of either of the
prior two calendar years.
* * * * *
PART 195--COMMUNITY REINVESTMENT
0
3. The authority citation for part 195 continues to read as follows:
Authority: 12 U.S.C. 1462a, 1463, 1464, 1814, 1816, 1828(c),
2901 through 2908, and 5412(b)(2)(B).
0
4. Section 195.12 is amended by revising paragraph (u)(1) to read as
follows:
Sec. 195.12 Definitions.
* * * * *
(u) * * *
(1) Definition. Small savings association means a savings
association that, as of December 31 of either of the prior two calendar
years, had assets of less than $1.284 billion. Intermediate small
savings association means a small savings association with assets of at
least $321 million as of December 31 of both of the prior two calendar
years and less than $1.284 billion as of December 31 of either of the
prior two calendar years.
* * * * *
Federal Reserve System
12 CFR Chapter II
For the reasons set forth in the SUPPLEMENTARY INFORMATION section,
the Board of Governors of the Federal Reserve System amends part 228 of
chapter II of title 12 of the Code of Federal Regulations as follows:
PART 228--COMMUNITY REINVESTMENT (REGULATION BB)
0
5. The authority citation for part 228 continues to read as follows:
Authority: 12 U.S.C. 321, 325, 1828(c), 1842, 1843, 1844, and
2901 et seq.
0
6. Section 228.12 is amended by revising paragraph (u)(1) to read as
follows:
Sec. 228.12 Definitions.
* * * * *
(u) * * *
(1) Definition. Small bank means a bank that, as of December 31 of
either of the prior two calendar years, had assets of less than $1.284
billion. Intermediate small bank means a small bank with assets of at
least $321 million as of December 31 of both of the prior two calendar
years and less than $1.284 billion as of December 31 of either of the
prior two calendar years.
* * * * *
Federal Deposit Insurance Corporation
12 CFR Chapter III
Authority and Issuance
For the reasons set forth in the SUPPLEMENTARY INFORMATION section,
the Board of Directors of the Federal Deposit Insurance Corporation
amends part 345 of chapter III of title 12 of the Code of Federal
Regulations to read as follows:
PART 345--COMMUNITY REINVESTMENT
0
7. The authority citation for part 345 continues to read as follows:
Authority: 12 U.S.C. 1814-1817, 1819-1820, 1828, 1831u and 2901-
2908, 3103-3104, and 3108(a).
0
8. Section 345.12 is amended by revising paragraph (u)(1) to read as
follows:
Sec. 345.12 Definitions.
* * * * *
(u) * * *
(1) Definition. Small bank means a bank that, as of December 31 of
either of the prior two calendar years, had assets of less than $1.284
billion. Intermediate small bank means a small bank with assets of at
least $321 million as of December 31 of both of the prior two calendar
years and less than $1.284 billion as of December 31 of either of the
prior two calendar years.
* * * * *
[[Page 66604]]
Dated: December 18, 2018.
Bao Nguyen,
Acting Senior Deputy Comptroller and Chief Counsel.
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated
authority, December 17, 2018.
Ann E. Misback,
Secretary of the Board.
By order of the Board of Directors.
Dated at Washington, DC, this 13th day of December, 2018.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2018-27791 Filed 12-26-18; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P