Removal of Transferred OTS Regulation Regarding Deposits, 44558-44563 [2019-18268]

Download as PDF 44558 Federal Register / Vol. 84, No. 165 / Monday, August 26, 2019 / Proposed Rules The U.S. Department of Energy (‘‘DOE’’) is extending the public comment period for its grant of a petition for rulemaking and a proposed rule to establish a new product class for dishwashers. DOE published the notice of proposed rulemaking (NOPR) in the Federal Register on July 16, 2019 establishing a 60-day public comment period ending September 16, 2019. On August 9, 2019, DOE received a comment requesting a 60 day comment period extension. DOE is extending the public comment period for submitting comments and data on the NOPR by 30 days to October 16, 2019. DATES: The comment period for the proposed rulemaking published on July 16, 2019 (84 FR 33869), is extended. DOE will accept comments, data, and information regarding this rulemaking received no later than October 16, 2019. ADDRESSES: Interested persons are encouraged to submit comments, identified by docket number EERE– 2018–BT–STD–0005, by any of the following methods: Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. Email: Dishwashers2018STD0005@ ee.doe.gov. Include the docket number and/or RIN in the subject line of the message. Submit electronic comments in WordPerfect, Microsoft Word, PDF, or ASCII file format, and avoid the use of special characters or any form of encryption. Postal Mail: Appliance and Equipment Standards Program, U.S. Department of Energy, Building Technologies Office, Mailstop EE–5B, 1000 Independence Avenue SW, Washington, DC 20585–0121. If possible, please submit all items on a compact disc (‘‘CD’’), in which case it is not necessary to include printed copies. Hand Delivery/Courier: Appliance and Equipment Standards Program, U.S. Department of Energy, Building Technologies Office, 950 L’Enfant Plaza SW, Suite 600, Washington, DC 20024. Telephone: (202) 287–1445. If possible, please submit all items on a CD, in which case it is not necessary to include printed copies. No telefacsimilies (faxes) will be accepted. Docket: For access to the docket to read background documents, or comments received, go to the Federal eRulemaking Portal at https:// www.regulations.gov/docket?D=EERE2018-BT-STD-0005. The docket, which includes Federal Register notices, public meeting attendee lists and transcripts, comments, and other supporting khammond on DSKBBV9HB2PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 15:54 Aug 23, 2019 Jkt 247001 documents/materials, is available for review at http://www.regulations.gov. All documents in the docket are listed in the http://www.regulations.gov index. However, some documents listed in the index may not be publicly available, such as those containing information that is exempt from public disclosure. The docket web page can be found at: https://www.regulations.gov/ docket?D=EERE-2018-BT-STD-0005. The docket web page contains instructions on how to access all documents, including public comments, in the docket. FOR FURTHER INFORMATION CONTACT: Mr. Bryan Berringer, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies Office, EE–5B, 1000 Independence Avenue SW, Washington, DC 20585–0121. Telephone: (202) 586– 0371. Email: ApplianceStandardsQuestions@ ee.doe.gov. Ms. Elizabeth Kohl, U.S. Department of Energy, Office of the General Counsel, GC–33, 1000 Independence Avenue SW, Washington, DC 20585–0121. Telephone: (202) 586–7796. Email: Elizabeth.Kohl@hq.doe.gov. For further information on how to submit a comment or review other public comments and the docket contact the Appliance and Equipment Standards Program staff at (202) 287– 1445 or by email: ApplianceStandardsQuestions@ ee.doe.gov. SUPPLEMENTARY INFORMATION: On July 16, 2019, DOE published a notice of proposed rulemaking (NOPR) in the Federal Register soliciting public comment on its grant of a petition for rulemaking and a proposed rule to establish a new product class for dishwashers with a cycle time for the normal cycle of less than one hour from washing through drying. 84 FR 33869. Comments were originally due on September 16, 2019. On August 9, 2019, DOE received a comment from Association of Home Appliance Manufacturers (AHAM) requesting a 60 day comment period extension.1 DOE has reviewed the request and considered the benefit to stakeholders in providing additional time to review the NOPR and gather information/data that DOE is seeking. Accordingly, DOE has determined that an extension of the comment period is appropriate, and is hereby extending the comment period by 30 days, until October 16, 2019. Given stakeholders’ 1 DOE has posted this comment to the docket at https://www.regulations.gov/document?D=EERE2018-BT-STD-0005-2309. PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 previous opportunities to comment on the petition when it was initially published on April 24, 2018 (83 FR 17768), DOE feels that the additional 30 days is adequate time for industry members to respond to the NOPR. Signed in Washington, DC, on August 16, 2019. Alexander N. Fitzsimmons, Acting Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and Renewable Energy. [FR Doc. 2019–18299 Filed 8–23–19; 8:45 am] BILLING CODE 6450–01–P FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 390 RIN 3064–AF07 Removal of Transferred OTS Regulation Regarding Deposits Federal Deposit Insurance Corporation. ACTION: Notice of proposed rulemaking. AGENCY: The Federal Deposit Insurance Corporation (FDIC) proposes to rescind and remove the ‘‘Deposits’’ regulations because they are unnecessary and duplicative of currently applicable provisions of law with respect to the maintenance of deposit account records at State savings associations. These regulations apply solely to State savings associations, and were included in the regulations that were transferred to the FDIC from the Office of Thrift Supervision (OTS) on July 21, 2011, in connection with the implementation of title III of the DoddFrank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). DATES: Comments must be received on or before September 25, 2019. ADDRESSES: You may submit comments by any of the following methods: • Agency Website: https:// www.fdic.gov/regulations/laws/federal/. Follow instructions for submitting comments on the agency website. • Email: Comments@fdic.gov. Include RIN 3064–AF07 on the subject line of the message. • Mail: Robert E. Feldman, Executive Secretary, Attention: Comments, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. • Hand Delivery/Courier: Comments may be hand-delivered to the guard station at the rear of the 550 17th Street Building (located on F Street) on business days between 7 a.m. and 5 p.m. • Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. SUMMARY: E:\FR\FM\26AUP1.SGM 26AUP1 Federal Register / Vol. 84, No. 165 / Monday, August 26, 2019 / Proposed Rules Public Inspection: All comments received will be posted without change to https://www.fdic.gov/regulations/ laws/federal/, including any personal information provided. Paper copies of public comments may be ordered from the FDIC Public Information Center, 3501 North Fairfax Drive, Room E–1002. Please include your name, affiliation, address, email address, and telephone number(s) in your comment. All statements received, including attachments and other supporting materials, are part of the public record and are subject to public disclosure. FOR FURTHER INFORMATION CONTACT: Karen J. Currie, Senior Examination Specialist, (202) 898–3981, KCurrie@ FDIC.gov, Division of Risk Management Supervision; Christine M. Bouvier, Assistant Chief Accountant, (202) 898– 7289, Division of Risk Management Supervision; Cassandra Duhaney, Senior Policy Analyst, (202) 898–6804, Division of Depositor and Consumer Protection; Laura J. McNulty, Counsel, Legal Division, (202) 898–3817; or Jennifer M. Jones, Counsel, Legal Division (202) 898–6768. SUPPLEMENTARY INFORMATION: I. Policy Objective The policy objective of the proposed rule is to remove unnecessary and duplicative regulations in order to simplify them and improve the public’s understanding of them. Thus, the FDIC is proposing to rescind the regulations in 12 CFR part 390, subpart M, entitled Deposits (part 390, subpart M). As discussed below, the FDIC takes the view that no revision to other existing regulations is necessary. This approach would simplify and streamline the FDIC’s regulations by removing unnecessary provisions that are adequately provided for in other existing statutes and regulations. khammond on DSKBBV9HB2PROD with PROPOSALS II. Background A. The Dodd-Frank Act The Dodd-Frank Act, signed into law on July 21, 2010, provided for a substantial reorganization of the regulation of State and Federal savings associations and their holding companies.1 Beginning July 21, 2011, the transfer date established by section 311 of the Dodd-Frank Act,2 the powers, duties, and functions formerly performed by the OTS were divided among the FDIC, as to State savings associations, the Office of the Comptroller of the Currency (OCC), as to Federal savings associations, and the 1 Public Law 111–203, 124 Stat. 1376 (2010). at 12 U.S.C. 5411. 2 Codified VerDate Sep<11>2014 15:54 Aug 23, 2019 Jkt 247001 Board of Governors of the Federal Reserve System (FRB), as to savings and loan holding companies. Section 316(b) of the Dodd-Frank Act 3 provides the manner of treatment for all orders, resolutions, determinations, regulations, and other advisory materials that have been issued, made, prescribed, or allowed to become effective by the OTS. The section provides that if such materials were in effect on the day before the transfer date, they continue in effect and are enforceable by or against the appropriate successor agency until they are modified, terminated, set aside, or superseded in accordance with applicable law by such successor agency, by any court of competent jurisdiction, or by operation of law. Pursuant to section 316(c) of the Dodd-Frank Act,4 on June 14, 2011, the FDIC’s Board of Directors (Board) approved a ‘‘List of OTS Regulations to be Enforced by the OCC and the FDIC Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act.’’ This list was published by the FDIC and the OCC as a Joint Notice in the Federal Register on July 6, 2011.5 Although § 312(b)(2)(B)(i)(II) of the Dodd-Frank Act 6 granted the OCC rulemaking authority relating to both State and Federal savings associations, nothing in the Dodd-Frank Act affected the FDIC’s existing authority to issue regulations under the Federal Deposit Insurance Act (FDI Act) 7 and other laws as the ‘‘appropriate Federal banking agency’’ or under similar statutory terminology. Section 312(c)(1) of the Dodd-Frank Act 8 revised the definition of ‘‘appropriate Federal banking agency’’ contained in § 3(q) of the FDI Act,9 to add State savings associations to the list of entities for which the FDIC is designated as the ‘‘appropriate Federal banking agency.’’ As a result, when the FDIC acts as the appropriate Federal banking agency (or under similar terminology) for State savings associations, as it does here, the FDIC is authorized to issue, modify, and rescind regulations involving such associations, as well as for State nonmember banks and insured State-licensed branches of foreign banks. As noted above, on June 14, 2011, operating pursuant to this authority, the Board issued a list of regulations of the former OTS that the FDIC would enforce with respect to State savings at 12 U.S.C. 5414(b). at 12 U.S.C. 5414(c). 5 76 FR 39246 (July 6, 2011). 6 Codified at 12 U.S.C. 5412(b)(2)(B)(i)(II). 7 12 U.S.C. 1811 et seq. 8 Codified at 12 U.S.C. 5412(c)(1). 9 12 U.S.C. 1813(q). associations. On that same date, the Board reissued and redesignated certain regulations transferred from the former OTS. These transferred OTS regulations were published as new FDIC regulations in the Federal Register on August 5, 2011.10 When the FDIC republished the transferred OTS regulations as new FDIC regulations, it specifically noted that its staff would evaluate the transferred OTS rules and might later recommend incorporating the transferred OTS regulations into other FDIC regulations, amending them, or rescinding them, as appropriate.11 B. Transferred OTS Regulations (Transferred to the FDIC’s Part 390, Subpart M) One of the regulations transferred to the FDIC from the OTS was former 12 CFR 557.20, concerning the maintenance of deposit records by State savings associations.12 That provision was transferred to the FDIC and now comprises part 390, subpart M. The OTS had issued § 557.20 as part of a streamlining of its regulations in 1997.13 At that time, the OTS regulations included several specific deposit recordkeeping requirements, and the OTS sought to replace those with one provision. In the associated NPR, the OTS explained that ‘‘[a]s part of its reinvention effort, OTS is endeavoring to eliminate regulations that are outdated or micromanage thrift operations. For example, OTS proposes to replace several specific depositrelated recordkeeping requirements with a general recordkeeping regulation that is tied more closely to safety and soundness.’’ 14 C. Part 390, Subpart M—Deposits The FDIC has conducted a careful review and comparison of part 390, subpart M and other Federal regulations and statutes concerning the maintenance of deposit records at State savings associations. As discussed in Part III of this Supplementary Information section, the FDIC proposes to rescind part 390, subpart M, because the FDIC considers the provisions contained in part 390, subpart M to be unnecessary in light of the applicability of other provisions of Federal statutes and regulations. 3 Codified 4 Codified PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 44559 10 76 FR 47652 (Aug. 5, 2011). 76 FR 47653. 12 See 76 FR 47659. 13 62 FR 55759 (Oct. 22, 1997). 14 62 FR 15627 (Apr. 2, 1997). 11 See E:\FR\FM\26AUP1.SGM 26AUP1 44560 Federal Register / Vol. 84, No. 165 / Monday, August 26, 2019 / Proposed Rules III. Comparison of Other Applicable Statutes and Regulations With the Transferred OTS Regulations To Be Rescinded The following is a description of existing statutes and regulations that would provide for complete and accurate recordkeeping of deposits and account transactions at State savings associations, obviating the need for a new regulation or amendment of existing regulations upon rescission of part 390, subpart M. Accordingly, the FDIC proposes that §§ 390.230 and 390.231, part 390, subpart M, be rescinded as unnecessary, redundant of, or otherwise duplicative of the provisions of law delineated in 12 U.S.C. 1817(a)(9)); 31 CFR 1020.410(c)(2); 12 CFR part 364, Appendix A II; 12 CFR 330.1(e); and 12 CFR 1005, each discussed individually below. A. Former OTS Safety and Soundness— Part 390, Subpart M, Sections 390.230 and 390.231 1. § 390.230—What does this subpart do? Section 390.230 simply states that subpart M ‘‘applies to the deposit activities of State savings associations.’’ There is no substantively similar provision in the FDIC’s regulations, nor is one necessary. Accordingly, the FDIC proposes that section 390.230 be rescinded. khammond on DSKBBV9HB2PROD with PROPOSALS 2. § 390.231—What records should I maintain on deposit activities? Former OTS § 557.20, as modified by the FDIC in transferred § 390.231, provided general information on what records should be maintained by State savings associations on their deposit activities. Existing statutes and regulations that are applicable to State savings associations (discussed in greater detail below) already require the maintenance of accurate records of deposits and transactions by State savings associations. B. Data Collection at Insured Depository Institutions Section 7(a)(9) of the FDI Act 15 provides that ‘‘the Corporation shall take such action as may be necessary to ensure that—(A) each insured depository institution maintains; and (B) the Corporation receives on a regular basis from such institution, information on the total amount of all insured deposits, preferred deposits, and uninsured deposits at the institution.’’ In issuing regulations under that 15 12 U.S.C. 1817(a)(9). VerDate Sep<11>2014 15:54 Aug 23, 2019 Jkt 247001 statutory provision, the FDIC has stated that the agency ‘‘has a right and a duty’’ under § 7(a)(9) to require the maintenance of accurate deposit account records and that ‘‘requiring covered institutions to maintain complete and accurate records regarding the ownership and insurability of deposits . . . will facilitate the FDIC’s prompt payment of deposit insurance and enhance the ability to implement the least costly resolution of these institutions.’’ 16 Due to the requirements for accurate recordkeeping pursuant to its existing statutory authority, the FDIC takes the position that no new regulation will be needed upon the rescission of part 390, subpart M. C. Treasury Department Bank Secrecy Act Regulations 17 Section 1020.410(c)(2) of title 31, Code of Federal Regulations (CFR), requires banks (defined to include savings associations) 18 to maintain certain records, including ‘‘[e]ach statement, ledger card or other record on each deposit or share account, showing each transaction in, or with respect to, that account.’’ This rule specifically requires that such records be maintained at State savings associations, rather than the merely suggestive language included in part 390, subpart M. D. Activities Implicating Safety and Soundness; Part 364 19 In 1995, the FDIC published 12 CFR 364 as a final rule with an appendix that implements section 39(a) of the FDI Act 20 regarding standards for safety and soundness (Appendix A).21 The OCC, the FRB, and the OTS also issued their versions of Appendix A.22 The FDIC’s Appendix A II (Operational and Managerial Standards) provides that an institution should have internal controls and information systems that are appropriate to the size of the institution and the nature, scope, and risk of its activities and that provide for, among 16 81 FR 87735. CFR 1020. 18 31 CFR 1010.100(d)(3). 19 12 CFR part 364, Appendix A II. 20 12 U.S.C. 1831p–1. § 132 of the Federal Deposit Insurance Corporation Improvement Act of 1991, Public Law 102–242, 105 Stat. 2236 (codified at 12 U.S.C. 1831p–1) added § 39 to the FDI Act. § 39 was later amended by § 956 of the Housing and Community Development Act of 1992, Public Law 102–550, 106 Stat. 3672, and § 318 of the Riegle Community Development and Regulatory Improvement Act of 1994, Public Law 103–325, 108 Stat. 2160. 21 60 FR 35674 (July 10, 1995). 22 See 12 CFR part 30, Appendix A, 60 FR 35678; 12 CFR part 208, Appendix D–1, 60 FR 35682; (former) 12 CFR part 570, Appendix A, 60 FR 35687, respectively (July 10, 1995). 17 31 PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 other things: ‘‘timely and accurate financial, operational and regulatory reports.’’ An Appendix B (regarding information security) was also published to implement § 39 of the FDI Act.23 Section 364.101 of part 364 provides that Appendix A and Appendix B apply to all insured State nonmember banks, State-licensed insured branches of foreign banks, and State savings associations. FDICsupervised institutions are required to file quarterly Reports of Condition.24 In addition, the accounting principles applicable to reports or statements that insured depository institutions file with the Federal banking agencies are required to be uniform and consistent with generally accepted accounting principles.25 Taken together, part 364 and appendix A constitute the FDIC’s longstanding expectations for all prudently managed insured depository institutions, but leave specific methods of achieving these objectives to each institution. Specifically, they provide a framework for sound corporate governance and the supervision of operations designed to prompt an institution to identify emerging problems and correct deficiencies before capital becomes impaired. Pursuant to § 39(e) of the FDI Act,26 an FDICsupervised institution’s failure to meet the standards may cause the FDIC to require the institution to submit a safety and soundness compliance plan, and if the institution does not comply with its plan, the FDIC will issue an order to correct safety and soundness deficiencies.27 Hence, in order to accurately report their financial condition, including deposit liabilities, and to meet applicable safety and soundness criteria, insured depository institutions, including State savings associations, must keep accurate and up-to-date records of account transactions and balances. E. FDIC’s Deposit Insurance Coverage Criteria 28 Part 330 of the FDIC’s regulations governs the criteria for deposit insurance coverage at insured depository institutions, including 23 Appendix B was added in accordance with section 501 of the Gramm-Leach-Bliley Financial Modernization Act of 1999, Public Law 106–102, 113 Stat. 1338, codified at 15 U.S.C. 6801, which statute required the agencies to establish appropriate information security standards in order to protect nonpublic personal information. 24 12 U.S.C. 1817(a)(3)–(6); 12 U.S.C. 1464(v). 25 12 U.S.C. 1831n. 26 12 U.S.C. 1831p–1(e). 27 See 12 U.S.C. 1831p–1(e); 12 CFR 308.300, et seq. 28 12 CFR 330. E:\FR\FM\26AUP1.SGM 26AUP1 Federal Register / Vol. 84, No. 165 / Monday, August 26, 2019 / Proposed Rules insured State savings associations. Section 330.3(h) of part 330 states that deposit insurance coverage is ‘‘a function of the deposit account records of the insured depository . . . which, in the interest of uniform national rules for deposit insurance coverage, are controlling for purposes of determining deposit insurance coverage.’’ Further, § 330.1(e) defines the term ‘‘deposit account records’’ to include documents such as ‘‘account ledgers . . . and other books and records of the insured depository institution . . . which relate to the insured depository institution’s deposit taking function.’’ This existing regulation on criteria for deposit insurance would also require State savings associations to maintain records of their deposit transactions, eliminating the need for part 390, subpart M. khammond on DSKBBV9HB2PROD with PROPOSALS F. Bureau of Consumer Financial Protection—Regulation E Regulation E,29 issued by the Bureau of Consumer Financial Protection, relates to electronic fund transfers at financial institutions, including any savings association.30 It states that ‘‘[f]or an account to or from which electronic fund transfers can be made, a financial institution shall send a periodic statement for each monthly cycle in which an electronic fund transfer has occurred; and shall send a periodic statement at least quarterly if no transfer has occurred.’’ 31 Thus, in order to comply with existing Regulation E, a State savings association must be capable of generating periodic statements for each of its deposit accounts, whether or not electronic transfers are made from that account, again serving the intended purpose of part 390, subpart M. Accordingly, as explained in the analysis above, the FDIC proposes to remove §§ 390.230 and 390.231, subpart M because these sections are unnecessary, redundant of, or otherwise duplicative of the safety and soundness and other standards described above. IV. Proposed Amendment to Part 390, Subpart M As discussed in part III of this Supplementary Information, the FDIC’s part 390, subpart M addresses the maintenance of records of deposit transactions and activities for State savings associations. To remove unnecessary and redundant regulations, one of the stated policy goals of the FDIC, the FDIC proposes to rescind part 390, subpart M as unnecessary and CFR part 1005. 30 12 CFR 1005.2(i). 31 12 CFR 1005.9(b). 15:54 Aug 23, 2019 V. Expected Effects As explained in detail in Section III of this Supplemental Information section, certain OTS regulations transferred to the FDIC by the DoddFrank Act relating to records of deposit transactions and activities are either unnecessary or effectively duplicate existing regulations. This proposal would eliminate one of those transferred OTS regulations. As of March 31, 2019, the FDIC supervises 3,465 insured depository institutions, of which 39 (1.1%) are State savings associations.32 The proposed rule primarily would affect regulations that govern State savings associations. As explained previously, the proposed rule would remove §§ 390.230 and 390.231, subpart M, because these sections are unnecessary, redundant of, or otherwise duplicative of other statutes and regulations, including those relating to safety and soundness. Because these regulations are redundant, rescinding them will not have any substantive effects on FDICsupervised institutions. The FDIC invites comments on all aspects of this analysis. In particular, would the proposed rule have any costs or benefits to covered entities that the FDIC has not identified? VI. Alternatives The FDIC has considered alternatives to the proposed rule but believes that the proposed amendments represent the most appropriate option for covered institutions. As discussed previously, the Dodd-Frank Act transferred certain powers, duties, and functions formerly performed by the OTS to the FDIC. The FDIC’s Board reissued and redesignated certain transferred regulations from the OTS, but noted that it would evaluate them and might later incorporate them into other FDIC regulations, amend them, or rescind them, as appropriate. The FDIC has evaluated the existing regulations relating to the maintenance of deposit account records. The FDIC considered the status quo alternative of retaining the current regulations, but did not choose to do so. The FDIC believes it would be procedurally complex for FDIC-supervised institutions to continue to refer to these separate sets of regulations, and 32 Based on data from the March 31, 2019, Consolidated Reports of Condition and Income (Call Report) and Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks. 29 12 VerDate Sep<11>2014 redundant of other applicable statutes and regulations. Under the proposal, subpart M would be rescinded and that subpart reserved for future use. Jkt 247001 PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 44561 therefore proposes to amend and streamline them in accordance with this proposed rulemaking. VII. Request for Comments The FDIC invites comments on all aspects of this proposed rulemaking. In particular, the FDIC requests comments on the following questions: 1. Are the provisions of 12 CFR parts 330; 364, Appendix A; and 1005 and 31 CFR part 1020 sufficient to provide consistent and effective requirements related to the maintenance of records of deposit account activities at State savings associations for which the FDIC is the appropriate Federal banking agency? Please provide examples, data, or otherwise substantiate your answer. 2. What negative impacts, if any, can you foresee in the FDIC’s proposal to rescind part 390, subpart M? 3. Are existing statutory and regulatory requirements relating to the maintenance of records of account transactions and deposits sufficient to ensure the safety and soundness of insured State savings associations? Please provide examples, data, or otherwise substantiate your answer. 4. Please provide any other comments you may have on the proposal. Written comments must be received by the FDIC not later than September 25, 2019. VIII. Regulatory Analysis and Procedure A. The Paperwork Reduction Act In accordance with the requirements of the Paperwork Reduction Act of 1995 (PRA),33 the FDIC may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The proposed rule would rescind and remove from FDIC regulations part 390, subpart M. The proposed rule will not create any new or revise any existing collections of information under the PRA. Therefore, no information collection request will be submitted to the OMB for review. B. The Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) requires that, in connection with a notice of proposed rulemaking, an agency prepare and make available for public comment an initial regulatory flexibility analysis that describes the impact of the proposed rule on small entities.34 However, a regulatory 33 44 34 5 U.S.C. 3501–3521. U.S.C. 601, et seq. E:\FR\FM\26AUP1.SGM 26AUP1 44562 Federal Register / Vol. 84, No. 165 / Monday, August 26, 2019 / Proposed Rules khammond on DSKBBV9HB2PROD with PROPOSALS flexibility analysis is not required if the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities, and publishes its certification and a short explanatory statement in the Federal Register, together with the rule. The Small Business Administration (SBA) has defined ‘‘small entities’’ to include banking organizations with total assets of less than or equal to $550 million.35 Generally, the FDIC considers a significant effect to be a quantified effect in excess of 5 percent of total annual salaries and benefits per institution, or 2.5 percent of total noninterest expenses. The FDIC believes that effects in excess of these thresholds typically represent significant effects for FDIC-supervised institutions. For the reasons provided below, the FDIC certifies that the proposed rule, if adopted in final form, would not have a significant economic impact on a substantial number of small banking organizations. Accordingly, a regulatory flexibility analysis is not required. As of March 31, 2019, the FDIC supervised 3,465 insured depository institutions, of which 2,645 are considered small banking organizations for the purposes of RFA. The proposed rule primarily affects regulations that govern State savings associations. There are 38 State savings associations considered to be small banking organizations for the purposes of the RFA.36 As explained previously, the proposed rule would remove §§ 390.230 and 390.231, part 390, subpart M, because these sections are unnecessary, redundant of, or otherwise duplicative of other statutes and regulations, including safety and soundness standards. Therefore, rescinding subpart M would not have any substantive effects on small FDIC-supervised institutions. Based on the information above, the FDIC certifies that the proposed rule would not have a significant economic impact on a substantial number of small 35 The SBA defines a small banking organization as having $550 million or less in assets, where ‘‘a financial institution’s assets are determined by averaging the assets reported on its four quarterly financial statements for the preceding year.’’ See 13 CFR 121.201 (as amended, effective December 2, 2014). ‘‘SBA counts the receipts, employees, or other measure of size of the concern whose size is at issue and all of its domestic and foreign affiliates.’’ See 13 CFR 121.103. Following these regulations, the FDIC uses a covered entity’s affiliated and acquired assets, averaged over the preceding four quarters, to determine whether the FDIC-supervised institution is ‘‘small’’ for the purposes of RFA. 36 Based on data from the March 31, 2019, Call Report and Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks. VerDate Sep<11>2014 15:54 Aug 23, 2019 Jkt 247001 entities. The FDIC invites comments on all aspects of the supporting information provided in this RFA section. In particular, would this rule have any significant effects on small entities that the FDIC has not identified? C. Plain Language Section 722 of the Gramm-LeachBliley Act 37 requires each Federal banking agency to use plain language in all of its proposed and final rules published after January 1, 2000. As a Federal banking agency subject to the provisions of this section, the FDIC has sought to present the proposed rule to rescind part 390, subpart M in a simple and straightforward manner. The FDIC invites comments on whether the proposal is clearly stated and effectively organized, and how the FDIC might make the proposal easier to understand. D. Riegle Community Development and Regulatory Improvement Act of 1994 The Riegle Community Development and Regulatory Improvement Act of 1994 (RCDRIA) requires that each Federal banking agency, in determining the effective date and administrative compliance requirements for new regulations that impose additional reporting, disclosure, or other requirements on insured depository institutions, consider, consistent with principles of safety and soundness and the public interest, any administrative burdens that such regulations would place on depository institutions, including small depository institutions, and customers of depository institutions, as well as the benefits of such regulations. In addition, new regulations and amendments to regulations that impose additional reporting, disclosure, or other new requirements on insured depository institutions generally must take effect on the first day of a calendar quarter that begins on or after the date on which the regulations are published in final form.38 The FDIC invites comments that further will inform its consideration of RCDRIA. E. The Economic Growth and Regulatory Paperwork Reduction Act Under § 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA), the FDIC is required to review all of its regulations at least once every 10 years, in order to identify any outdated or otherwise unnecessary regulations imposed on 37 Public Law 106–102, 113 Stat. 1338, 1471 (codified at 12 U.S.C. 4809). 38 12 U.S.C. 4802. PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 insured institutions.39 The FDIC, along with the other Federal banking agencies, submitted a Joint Report to Congress on March 21, 2017, (EGRPRA Report) discussing how the review was conducted, what has been done to date to address regulatory burden, and further measures that will be taken to address issues that were identified. As noted in the EGRPRA Report, the FDIC is continuing to streamline and clarify its regulations through the OTS rule integration process. By removing outdated or unnecessary regulations, such as part 390, subpart M, this rule complements other actions the FDIC has taken, separately and with the other Federal banking agencies, to further the EGRPRA mandate. List of Subjects in 12 CFR Part 390 Administrative practice and procedure, Advertising, Aged, Civil rights, Conflict of interests, Credit, Crime, Equal employment opportunity, Fair housing, Government employees, Individuals with disabilities, Reporting and recordkeeping requirements, Savings associations. Authority and Issuance For the reasons stated in the preamble, the Federal Deposit Insurance Corporation proposes to amend 12 CFR 390 as follows: PART 390—REGULATIONS TRANSFERRED FROM THE OFFICE OF THRIFT SUPERVISION 1. Revise the authority citation for part 390 to read as follows: ■ Authority: 12 U.S.C. 1819. Subpart F also issued under 5 U.S.C. 552; 559; 12 U.S.C. 2901 et seq. Subpart G also issued under 12 U.S.C. 2810 et seq., 2901 et seq.; 15 U.S.C. 1691; 42 U.S.C. 1981, 1982, 3601–3619. Subpart O also issued under 12 U.S.C. 1828. Subpart Q also issued under 12 U.S.C. 1462; 1462a; 1463; 1464. Subpart R also issued under 12 U.S.C. 1463; 1464; 1831m; 1831n; 1831p–1. Subpart S also issued under 12 U.S.C. 1462; 1462a; 1463; 1464; 1468a; 1817; 1820; 1828; 1831e; 1831o; 1831p–1; 1881–1884; 3207; 3339; 15 U.S.C. 78b; 78l; 78m; 78n; 78p; 78q; 78w; 31 U.S.C. 5318; 42 U.S.C. 4106. Subpart T also issued under 12 U.S.C. 1462a; 1463; 1464; 15 U.S.C. 78c; 78l; 78m; 78n; 78w. Subpart W also issued under 12 U.S.C. 1462a; 1463; 1464; 15 U.S.C. 78c; 78l; 78m; 78n; 78p; 78w. Subpart Y also issued under 12 U.S.C. 1831o. 39 Public E:\FR\FM\26AUP1.SGM Law 104–208, 110 Stat. 3009 (1996). 26AUP1 Federal Register / Vol. 84, No. 165 / Monday, August 26, 2019 / Proposed Rules 2. Remove and reserve part 390, subpart M, consisting of §§ 390.230 and 390.231. ■ Subpart M—[Removed and Reserved] * * * * * By order of the Board of Directors. Federal Deposit Insurance Corporation. Dated at Washington, DC, on August 20, 2019. Valerie Best, Assistant Executive Secretary. [FR Doc. 2019–18268 Filed 8–23–19; 8:45 am] BILLING CODE 6714–01–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Examining the AD Docket 14 CFR Part 39 [Docket No. FAA–2019–0609; Product Identifier 2019–NM–054–AD] RIN 2120–AA64 Airworthiness Directives; Airbus SAS Airplanes Federal Aviation Administration (FAA), DOT. ACTION: Notice of proposed rulemaking (NPRM). AGENCY: The FAA proposes to adopt a new airworthiness directive (AD) for all Airbus SAS Model A350–941 airplanes. This proposed AD was prompted by a report of dislodged passenger door girt bars. This proposed AD would require modification of the girt bar retention mechanism of the affected doors, as specified in a European Union Aviation Safety Agency (EASA) AD, which will be incorporated by reference. The FAA is proposing this AD to address the unsafe condition on these products. DATES: The FAA must receive comments on this proposed AD by October 10, 2019. SUMMARY: You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods: • Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments. • Fax: 202–493–2251. • Mail: U.S. Department of Transportation, Docket Operations, M– 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE, Washington, DC 20590. • Hand Delivery: Deliver to Mail address above between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. khammond on DSKBBV9HB2PROD with PROPOSALS ADDRESSES: VerDate Sep<11>2014 15:54 Aug 23, 2019 Jkt 247001 For the material identified in this proposed AD that will be incorporated by reference (IBR), contact the EASA, at Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; telephone +49 221 89990 1000; email ADs@easa.europa.eu; internet www.easa.europa.eu. You may find this IBR material on the EASA website at https://ad.easa.europa.eu. You may view this IBR material at the FAA, Transport Standards Branch, 2200 South 216th St., Des Moines, WA. For information on the availability of this material at the FAA, call 206–231–3195. It is also available in the AD docket on the internet at http:// www.regulations.gov by searching for and locating Docket No. FAA–2019– 0609. You may examine the AD docket on the internet at http:// www.regulations.gov by searching for and locating Docket No. FAA–2019– 0609; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this NPRM, the regulatory evaluation, any comments received, and other information. The street address for Docket Operations is listed above. Comments will be available in the AD docket shortly after receipt. FOR FURTHER INFORMATION CONTACT: Kathleen Arrigotti, Aerospace Engineer, International Section, Transport Standards Branch, FAA, 2200 South 216th St., Des Moines, WA 98198; telephone and fax 206–231–3218. SUPPLEMENTARY INFORMATION: Comments Invited The FAA invites you to send any written relevant data, views, or arguments about this proposal. Send your comments to an address listed under the ADDRESSES section. Include ‘‘Docket No. FAA–2019–0609; Product Identifier 2019–NM–054–AD’’ at the beginning of your comments. The FAA specifically invites comments on the overall regulatory, economic, environmental, and energy aspects of this NPRM. The FAA will consider all comments received by the closing date and may amend this NPRM based on those comments. The FAA will post all comments received, without change, to http:// www.regulations.gov, including any personal information you provide. The FAA will also post a report summarizing each substantive verbal contact received about this NPRM. PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 44563 Discussion The EASA, which is the Technical Agent for the Member States of the European Union, has issued EASA AD 2019–0076, dated March 29, 2019 (‘‘EASA AD 2019–0076’’) (also referred to as the Mandatory Continuing Airworthiness Information, or ‘‘the MCAI’’), to correct an unsafe condition for all Airbus SAS Model A350–941 airplanes. The MCAI states: In-service events of passenger door girt bar dislodgement have been reported by A350 operators. Further investigations revealed that the most likely causes of these events are closing of a door with excessive force, or interference with girt bar during on-ground service activities, or a combination of these. This condition, if not corrected, could lead to the functional loss of the affected door slide, possibly preventing safe evacuation of aeroplane occupants during an emergency. To address this potential unsafe condition, Airbus developed production mod 112115 to reinforce the girt bar retention, and published the applicable SB [service bulletin] to provide instructions for in-service modification. Following issuance of the applicable SB at original issue and Revision 01, Airbus published SBIT 19–0010 to inform operators about the correct nut reference to be used for installation of the doors 1, 2, 3 and 4, LH [left-hand] and RH [right-hand] for MSNs [manufacturer serial numbers] 0005 to 0058 and to clarify the additional placard marking procedure. For the reasons described above, this [EASA] AD requires modification of girt bar retention mechanism of the affected doors. Related IBR Material Under 1 CFR Part 51 EASA AD 2019–0076 describes procedures for modification of the girt bar retention mechanism of the affected doors. This material is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the ADDRESSES section. FAA’s Determination and Requirements of This Proposed AD This product has been approved by the aviation authority of another country, and is approved for operation in the United States. Pursuant to a bilateral agreement with the State of Design Authority, the FAA has been notified of the unsafe condition described in the MCAI referenced above. The FAA is proposing this AD because the agency evaluated all the relevant information and determined the unsafe condition described previously is likely to exist or develop in other products of the same type design. E:\FR\FM\26AUP1.SGM 26AUP1

Agencies

[Federal Register Volume 84, Number 165 (Monday, August 26, 2019)]
[Proposed Rules]
[Pages 44558-44563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18268]


=======================================================================
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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 390

RIN 3064-AF07


Removal of Transferred OTS Regulation Regarding Deposits

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) proposes to 
rescind and remove the ``Deposits'' regulations because they are 
unnecessary and duplicative of currently applicable provisions of law 
with respect to the maintenance of deposit account records at State 
savings associations. These regulations apply solely to State savings 
associations, and were included in the regulations that were 
transferred to the FDIC from the Office of Thrift Supervision (OTS) on 
July 21, 2011, in connection with the implementation of title III of 
the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-
Frank Act).

DATES: Comments must be received on or before September 25, 2019.

ADDRESSES: You may submit comments by any of the following methods:
     Agency Website: https://www.fdic.gov/regulations/laws/federal/. Follow instructions for submitting comments on the agency 
website.
     Email: [email protected]. Include RIN 3064-AF07 on the 
subject line of the message.
     Mail: Robert E. Feldman, Executive Secretary, Attention: 
Comments, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
     Hand Delivery/Courier: Comments may be hand-delivered to 
the guard station at the rear of the 550 17th Street Building (located 
on F Street) on business days between 7 a.m. and 5 p.m.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.

[[Page 44559]]

    Public Inspection: All comments received will be posted without 
change to https://www.fdic.gov/regulations/laws/federal/, including any 
personal information provided. Paper copies of public comments may be 
ordered from the FDIC Public Information Center, 3501 North Fairfax 
Drive, Room E-1002.
    Please include your name, affiliation, address, email address, and 
telephone number(s) in your comment. All statements received, including 
attachments and other supporting materials, are part of the public 
record and are subject to public disclosure.

FOR FURTHER INFORMATION CONTACT: Karen J. Currie, Senior Examination 
Specialist, (202) 898-3981, [email protected], Division of Risk 
Management Supervision; Christine M. Bouvier, Assistant Chief 
Accountant, (202) 898-7289, Division of Risk Management Supervision; 
Cassandra Duhaney, Senior Policy Analyst, (202) 898-6804, Division of 
Depositor and Consumer Protection; Laura J. McNulty, Counsel, Legal 
Division, (202) 898-3817; or Jennifer M. Jones, Counsel, Legal Division 
(202) 898-6768.

SUPPLEMENTARY INFORMATION: 

I. Policy Objective

    The policy objective of the proposed rule is to remove unnecessary 
and duplicative regulations in order to simplify them and improve the 
public's understanding of them. Thus, the FDIC is proposing to rescind 
the regulations in 12 CFR part 390, subpart M, entitled Deposits (part 
390, subpart M).
    As discussed below, the FDIC takes the view that no revision to 
other existing regulations is necessary. This approach would simplify 
and streamline the FDIC's regulations by removing unnecessary 
provisions that are adequately provided for in other existing statutes 
and regulations.

II. Background

A. The Dodd-Frank Act

    The Dodd-Frank Act, signed into law on July 21, 2010, provided for 
a substantial reorganization of the regulation of State and Federal 
savings associations and their holding companies.\1\ Beginning July 21, 
2011, the transfer date established by section 311 of the Dodd-Frank 
Act,\2\ the powers, duties, and functions formerly performed by the OTS 
were divided among the FDIC, as to State savings associations, the 
Office of the Comptroller of the Currency (OCC), as to Federal savings 
associations, and the Board of Governors of the Federal Reserve System 
(FRB), as to savings and loan holding companies. Section 316(b) of the 
Dodd-Frank Act \3\ provides the manner of treatment for all orders, 
resolutions, determinations, regulations, and other advisory materials 
that have been issued, made, prescribed, or allowed to become effective 
by the OTS. The section provides that if such materials were in effect 
on the day before the transfer date, they continue in effect and are 
enforceable by or against the appropriate successor agency until they 
are modified, terminated, set aside, or superseded in accordance with 
applicable law by such successor agency, by any court of competent 
jurisdiction, or by operation of law.
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    \1\ Public Law 111-203, 124 Stat. 1376 (2010).
    \2\ Codified at 12 U.S.C. 5411.
    \3\ Codified at 12 U.S.C. 5414(b).
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    Pursuant to section 316(c) of the Dodd-Frank Act,\4\ on June 14, 
2011, the FDIC's Board of Directors (Board) approved a ``List of OTS 
Regulations to be Enforced by the OCC and the FDIC Pursuant to the 
Dodd-Frank Wall Street Reform and Consumer Protection Act.'' This list 
was published by the FDIC and the OCC as a Joint Notice in the Federal 
Register on July 6, 2011.\5\
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    \4\ Codified at 12 U.S.C. 5414(c).
    \5\ 76 FR 39246 (July 6, 2011).
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    Although Sec.  312(b)(2)(B)(i)(II) of the Dodd-Frank Act \6\ 
granted the OCC rulemaking authority relating to both State and Federal 
savings associations, nothing in the Dodd-Frank Act affected the FDIC's 
existing authority to issue regulations under the Federal Deposit 
Insurance Act (FDI Act) \7\ and other laws as the ``appropriate Federal 
banking agency'' or under similar statutory terminology. Section 
312(c)(1) of the Dodd-Frank Act \8\ revised the definition of 
``appropriate Federal banking agency'' contained in Sec.  3(q) of the 
FDI Act,\9\ to add State savings associations to the list of entities 
for which the FDIC is designated as the ``appropriate Federal banking 
agency.'' As a result, when the FDIC acts as the appropriate Federal 
banking agency (or under similar terminology) for State savings 
associations, as it does here, the FDIC is authorized to issue, modify, 
and rescind regulations involving such associations, as well as for 
State nonmember banks and insured State-licensed branches of foreign 
banks.
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    \6\ Codified at 12 U.S.C. 5412(b)(2)(B)(i)(II).
    \7\ 12 U.S.C. 1811 et seq.
    \8\ Codified at 12 U.S.C. 5412(c)(1).
    \9\ 12 U.S.C. 1813(q).
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    As noted above, on June 14, 2011, operating pursuant to this 
authority, the Board issued a list of regulations of the former OTS 
that the FDIC would enforce with respect to State savings associations. 
On that same date, the Board reissued and redesignated certain 
regulations transferred from the former OTS. These transferred OTS 
regulations were published as new FDIC regulations in the Federal 
Register on August 5, 2011.\10\ When the FDIC republished the 
transferred OTS regulations as new FDIC regulations, it specifically 
noted that its staff would evaluate the transferred OTS rules and might 
later recommend incorporating the transferred OTS regulations into 
other FDIC regulations, amending them, or rescinding them, as 
appropriate.\11\
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    \10\ 76 FR 47652 (Aug. 5, 2011).
    \11\ See 76 FR 47653.
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B. Transferred OTS Regulations (Transferred to the FDIC's Part 390, 
Subpart M)

    One of the regulations transferred to the FDIC from the OTS was 
former 12 CFR 557.20, concerning the maintenance of deposit records by 
State savings associations.\12\ That provision was transferred to the 
FDIC and now comprises part 390, subpart M. The OTS had issued Sec.  
557.20 as part of a streamlining of its regulations in 1997.\13\ At 
that time, the OTS regulations included several specific deposit 
recordkeeping requirements, and the OTS sought to replace those with 
one provision. In the associated NPR, the OTS explained that ``[a]s 
part of its reinvention effort, OTS is endeavoring to eliminate 
regulations that are outdated or micromanage thrift operations. For 
example, OTS proposes to replace several specific deposit-related 
recordkeeping requirements with a general recordkeeping regulation that 
is tied more closely to safety and soundness.'' \14\
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    \12\ See 76 FR 47659.
    \13\ 62 FR 55759 (Oct. 22, 1997).
    \14\ 62 FR 15627 (Apr. 2, 1997).
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C. Part 390, Subpart M--Deposits

    The FDIC has conducted a careful review and comparison of part 390, 
subpart M and other Federal regulations and statutes concerning the 
maintenance of deposit records at State savings associations. As 
discussed in Part III of this Supplementary Information section, the 
FDIC proposes to rescind part 390, subpart M, because the FDIC 
considers the provisions contained in part 390, subpart M to be 
unnecessary in light of the applicability of other provisions of 
Federal statutes and regulations.

[[Page 44560]]

III. Comparison of Other Applicable Statutes and Regulations With the 
Transferred OTS Regulations To Be Rescinded

    The following is a description of existing statutes and regulations 
that would provide for complete and accurate recordkeeping of deposits 
and account transactions at State savings associations, obviating the 
need for a new regulation or amendment of existing regulations upon 
rescission of part 390, subpart M. Accordingly, the FDIC proposes that 
Sec. Sec.  390.230 and 390.231, part 390, subpart M, be rescinded as 
unnecessary, redundant of, or otherwise duplicative of the provisions 
of law delineated in 12 U.S.C. 1817(a)(9)); 31 CFR 1020.410(c)(2); 12 
CFR part 364, Appendix A II; 12 CFR 330.1(e); and 12 CFR 1005, each 
discussed individually below.

A. Former OTS Safety and Soundness--Part 390, Subpart M, Sections 
390.230 and 390.231

1. Sec.  390.230--What does this subpart do?
    Section 390.230 simply states that subpart M ``applies to the 
deposit activities of State savings associations.'' There is no 
substantively similar provision in the FDIC's regulations, nor is one 
necessary. Accordingly, the FDIC proposes that section 390.230 be 
rescinded.
2. Sec.  390.231--What records should I maintain on deposit activities?
    Former OTS Sec.  557.20, as modified by the FDIC in transferred 
Sec.  390.231, provided general information on what records should be 
maintained by State savings associations on their deposit activities. 
Existing statutes and regulations that are applicable to State savings 
associations (discussed in greater detail below) already require the 
maintenance of accurate records of deposits and transactions by State 
savings associations.

B. Data Collection at Insured Depository Institutions

    Section 7(a)(9) of the FDI Act \15\ provides that ``the Corporation 
shall take such action as may be necessary to ensure that--(A) each 
insured depository institution maintains; and (B) the Corporation 
receives on a regular basis from such institution, information on the 
total amount of all insured deposits, preferred deposits, and uninsured 
deposits at the institution.'' In issuing regulations under that 
statutory provision, the FDIC has stated that the agency ``has a right 
and a duty'' under Sec.  7(a)(9) to require the maintenance of accurate 
deposit account records and that ``requiring covered institutions to 
maintain complete and accurate records regarding the ownership and 
insurability of deposits . . . will facilitate the FDIC's prompt 
payment of deposit insurance and enhance the ability to implement the 
least costly resolution of these institutions.'' \16\ Due to the 
requirements for accurate recordkeeping pursuant to its existing 
statutory authority, the FDIC takes the position that no new regulation 
will be needed upon the rescission of part 390, subpart M.
---------------------------------------------------------------------------

    \15\ 12 U.S.C. 1817(a)(9).
    \16\ 81 FR 87735.
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C. Treasury Department Bank Secrecy Act Regulations 17
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    \17\ 31 CFR 1020.
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    Section 1020.410(c)(2) of title 31, Code of Federal Regulations 
(CFR), requires banks (defined to include savings associations) \18\ to 
maintain certain records, including ``[e]ach statement, ledger card or 
other record on each deposit or share account, showing each transaction 
in, or with respect to, that account.'' This rule specifically requires 
that such records be maintained at State savings associations, rather 
than the merely suggestive language included in part 390, subpart M.
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    \18\ 31 CFR 1010.100(d)(3).
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D. Activities Implicating Safety and Soundness; Part 364 19
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    \19\ 12 CFR part 364, Appendix A II.
---------------------------------------------------------------------------

    In 1995, the FDIC published 12 CFR 364 as a final rule with an 
appendix that implements section 39(a) of the FDI Act \20\ regarding 
standards for safety and soundness (Appendix A).\21\ The OCC, the FRB, 
and the OTS also issued their versions of Appendix A.\22\ The FDIC's 
Appendix A II (Operational and Managerial Standards) provides that an 
institution should have internal controls and information systems that 
are appropriate to the size of the institution and the nature, scope, 
and risk of its activities and that provide for, among other things: 
``timely and accurate financial, operational and regulatory reports.'' 
An Appendix B (regarding information security) was also published to 
implement Sec.  39 of the FDI Act.\23\ Section 364.101 of part 364 
provides that Appendix A and Appendix B apply to all insured State 
nonmember banks, State-licensed insured branches of foreign banks, and 
State savings associations. FDIC-supervised institutions are required 
to file quarterly Reports of Condition.\24\ In addition, the accounting 
principles applicable to reports or statements that insured depository 
institutions file with the Federal banking agencies are required to be 
uniform and consistent with generally accepted accounting 
principles.\25\
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    \20\ 12 U.S.C. 1831p-1. Sec.  132 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991, Public Law 102-242, 
105 Stat. 2236 (codified at 12 U.S.C. 1831p-1) added Sec.  39 to the 
FDI Act. Sec.  39 was later amended by Sec.  956 of the Housing and 
Community Development Act of 1992, Public Law 102-550, 106 Stat. 
3672, and Sec.  318 of the Riegle Community Development and 
Regulatory Improvement Act of 1994, Public Law 103-325, 108 Stat. 
2160.
    \21\ 60 FR 35674 (July 10, 1995).
    \22\ See 12 CFR part 30, Appendix A, 60 FR 35678; 12 CFR part 
208, Appendix D-1, 60 FR 35682; (former) 12 CFR part 570, Appendix 
A, 60 FR 35687, respectively (July 10, 1995).
    \23\ Appendix B was added in accordance with section 501 of the 
Gramm-Leach-Bliley Financial Modernization Act of 1999, Public Law 
106-102, 113 Stat. 1338, codified at 15 U.S.C. 6801, which statute 
required the agencies to establish appropriate information security 
standards in order to protect nonpublic personal information.
    \24\ 12 U.S.C. 1817(a)(3)-(6); 12 U.S.C. 1464(v).
    \25\ 12 U.S.C. 1831n.
---------------------------------------------------------------------------

    Taken together, part 364 and appendix A constitute the FDIC's long-
standing expectations for all prudently managed insured depository 
institutions, but leave specific methods of achieving these objectives 
to each institution. Specifically, they provide a framework for sound 
corporate governance and the supervision of operations designed to 
prompt an institution to identify emerging problems and correct 
deficiencies before capital becomes impaired. Pursuant to Sec.  39(e) 
of the FDI Act,\26\ an FDIC-supervised institution's failure to meet 
the standards may cause the FDIC to require the institution to submit a 
safety and soundness compliance plan, and if the institution does not 
comply with its plan, the FDIC will issue an order to correct safety 
and soundness deficiencies.\27\ Hence, in order to accurately report 
their financial condition, including deposit liabilities, and to meet 
applicable safety and soundness criteria, insured depository 
institutions, including State savings associations, must keep accurate 
and up-to-date records of account transactions and balances.
---------------------------------------------------------------------------

    \26\ 12 U.S.C. 1831p-1(e).
    \27\ See 12 U.S.C. 1831p-1(e); 12 CFR 308.300, et seq.
---------------------------------------------------------------------------

E. FDIC's Deposit Insurance Coverage Criteria 28
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    \28\ 12 CFR 330.
---------------------------------------------------------------------------

    Part 330 of the FDIC's regulations governs the criteria for deposit 
insurance coverage at insured depository institutions, including

[[Page 44561]]

insured State savings associations. Section 330.3(h) of part 330 states 
that deposit insurance coverage is ``a function of the deposit account 
records of the insured depository . . . which, in the interest of 
uniform national rules for deposit insurance coverage, are controlling 
for purposes of determining deposit insurance coverage.'' Further, 
Sec.  330.1(e) defines the term ``deposit account records'' to include 
documents such as ``account ledgers . . . and other books and records 
of the insured depository institution . . . which relate to the insured 
depository institution's deposit taking function.'' This existing 
regulation on criteria for deposit insurance would also require State 
savings associations to maintain records of their deposit transactions, 
eliminating the need for part 390, subpart M.

F. Bureau of Consumer Financial Protection--Regulation E

    Regulation E,\29\ issued by the Bureau of Consumer Financial 
Protection, relates to electronic fund transfers at financial 
institutions, including any savings association.\30\ It states that 
``[f]or an account to or from which electronic fund transfers can be 
made, a financial institution shall send a periodic statement for each 
monthly cycle in which an electronic fund transfer has occurred; and 
shall send a periodic statement at least quarterly if no transfer has 
occurred.'' \31\ Thus, in order to comply with existing Regulation E, a 
State savings association must be capable of generating periodic 
statements for each of its deposit accounts, whether or not electronic 
transfers are made from that account, again serving the intended 
purpose of part 390, subpart M.
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    \29\ 12 CFR part 1005.
    \30\ 12 CFR 1005.2(i).
    \31\ 12 CFR 1005.9(b).
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    Accordingly, as explained in the analysis above, the FDIC proposes 
to remove Sec. Sec.  390.230 and 390.231, subpart M because these 
sections are unnecessary, redundant of, or otherwise duplicative of the 
safety and soundness and other standards described above.

IV. Proposed Amendment to Part 390, Subpart M

    As discussed in part III of this Supplementary Information, the 
FDIC's part 390, subpart M addresses the maintenance of records of 
deposit transactions and activities for State savings associations. To 
remove unnecessary and redundant regulations, one of the stated policy 
goals of the FDIC, the FDIC proposes to rescind part 390, subpart M as 
unnecessary and redundant of other applicable statutes and regulations. 
Under the proposal, subpart M would be rescinded and that subpart 
reserved for future use.

V. Expected Effects

    As explained in detail in Section III of this Supplemental 
Information section, certain OTS regulations transferred to the FDIC by 
the Dodd-Frank Act relating to records of deposit transactions and 
activities are either unnecessary or effectively duplicate existing 
regulations. This proposal would eliminate one of those transferred OTS 
regulations.
    As of March 31, 2019, the FDIC supervises 3,465 insured depository 
institutions, of which 39 (1.1%) are State savings associations.\32\ 
The proposed rule primarily would affect regulations that govern State 
savings associations.
---------------------------------------------------------------------------

    \32\ Based on data from the March 31, 2019, Consolidated Reports 
of Condition and Income (Call Report) and Report of Assets and 
Liabilities of U.S. Branches and Agencies of Foreign Banks.
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    As explained previously, the proposed rule would remove Sec. Sec.  
390.230 and 390.231, subpart M, because these sections are unnecessary, 
redundant of, or otherwise duplicative of other statutes and 
regulations, including those relating to safety and soundness. Because 
these regulations are redundant, rescinding them will not have any 
substantive effects on FDIC-supervised institutions.
    The FDIC invites comments on all aspects of this analysis. In 
particular, would the proposed rule have any costs or benefits to 
covered entities that the FDIC has not identified?

VI. Alternatives

    The FDIC has considered alternatives to the proposed rule but 
believes that the proposed amendments represent the most appropriate 
option for covered institutions. As discussed previously, the Dodd-
Frank Act transferred certain powers, duties, and functions formerly 
performed by the OTS to the FDIC. The FDIC's Board reissued and 
redesignated certain transferred regulations from the OTS, but noted 
that it would evaluate them and might later incorporate them into other 
FDIC regulations, amend them, or rescind them, as appropriate. The FDIC 
has evaluated the existing regulations relating to the maintenance of 
deposit account records. The FDIC considered the status quo alternative 
of retaining the current regulations, but did not choose to do so. The 
FDIC believes it would be procedurally complex for FDIC-supervised 
institutions to continue to refer to these separate sets of 
regulations, and therefore proposes to amend and streamline them in 
accordance with this proposed rulemaking.

VII. Request for Comments

    The FDIC invites comments on all aspects of this proposed 
rulemaking. In particular, the FDIC requests comments on the following 
questions:
    1. Are the provisions of 12 CFR parts 330; 364, Appendix A; and 
1005 and 31 CFR part 1020 sufficient to provide consistent and 
effective requirements related to the maintenance of records of deposit 
account activities at State savings associations for which the FDIC is 
the appropriate Federal banking agency? Please provide examples, data, 
or otherwise substantiate your answer.
    2. What negative impacts, if any, can you foresee in the FDIC's 
proposal to rescind part 390, subpart M?
    3. Are existing statutory and regulatory requirements relating to 
the maintenance of records of account transactions and deposits 
sufficient to ensure the safety and soundness of insured State savings 
associations? Please provide examples, data, or otherwise substantiate 
your answer.
    4. Please provide any other comments you may have on the proposal.
    Written comments must be received by the FDIC not later than 
September 25, 2019.

VIII. Regulatory Analysis and Procedure

A. The Paperwork Reduction Act

    In accordance with the requirements of the Paperwork Reduction Act 
of 1995 (PRA),\33\ the FDIC may not conduct or sponsor, and the 
respondent is not required to respond to, an information collection 
unless it displays a currently valid Office of Management and Budget 
(OMB) control number.
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    \33\ 44 U.S.C. 3501-3521.
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    The proposed rule would rescind and remove from FDIC regulations 
part 390, subpart M. The proposed rule will not create any new or 
revise any existing collections of information under the PRA. 
Therefore, no information collection request will be submitted to the 
OMB for review.

B. The Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires that, in connection 
with a notice of proposed rulemaking, an agency prepare and make 
available for public comment an initial regulatory flexibility analysis 
that describes the impact of the proposed rule on small entities.\34\ 
However, a regulatory

[[Page 44562]]

flexibility analysis is not required if the agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities, and publishes its certification and a short 
explanatory statement in the Federal Register, together with the rule. 
The Small Business Administration (SBA) has defined ``small entities'' 
to include banking organizations with total assets of less than or 
equal to $550 million.\35\ Generally, the FDIC considers a significant 
effect to be a quantified effect in excess of 5 percent of total annual 
salaries and benefits per institution, or 2.5 percent of total 
noninterest expenses. The FDIC believes that effects in excess of these 
thresholds typically represent significant effects for FDIC-supervised 
institutions. For the reasons provided below, the FDIC certifies that 
the proposed rule, if adopted in final form, would not have a 
significant economic impact on a substantial number of small banking 
organizations. Accordingly, a regulatory flexibility analysis is not 
required.
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    \34\ 5 U.S.C. 601, et seq.
    \35\ The SBA defines a small banking organization as having $550 
million or less in assets, where ``a financial institution's assets 
are determined by averaging the assets reported on its four 
quarterly financial statements for the preceding year.'' See 13 CFR 
121.201 (as amended, effective December 2, 2014). ``SBA counts the 
receipts, employees, or other measure of size of the concern whose 
size is at issue and all of its domestic and foreign affiliates.'' 
See 13 CFR 121.103. Following these regulations, the FDIC uses a 
covered entity's affiliated and acquired assets, averaged over the 
preceding four quarters, to determine whether the FDIC-supervised 
institution is ``small'' for the purposes of RFA.
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    As of March 31, 2019, the FDIC supervised 3,465 insured depository 
institutions, of which 2,645 are considered small banking organizations 
for the purposes of RFA. The proposed rule primarily affects 
regulations that govern State savings associations. There are 38 State 
savings associations considered to be small banking organizations for 
the purposes of the RFA.\36\
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    \36\ Based on data from the March 31, 2019, Call Report and 
Report of Assets and Liabilities of U.S. Branches and Agencies of 
Foreign Banks.
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    As explained previously, the proposed rule would remove Sec. Sec.  
390.230 and 390.231, part 390, subpart M, because these sections are 
unnecessary, redundant of, or otherwise duplicative of other statutes 
and regulations, including safety and soundness standards. Therefore, 
rescinding subpart M would not have any substantive effects on small 
FDIC-supervised institutions.
    Based on the information above, the FDIC certifies that the 
proposed rule would not have a significant economic impact on a 
substantial number of small entities. The FDIC invites comments on all 
aspects of the supporting information provided in this RFA section. In 
particular, would this rule have any significant effects on small 
entities that the FDIC has not identified?

C. Plain Language

    Section 722 of the Gramm-Leach-Bliley Act \37\ requires each 
Federal banking agency to use plain language in all of its proposed and 
final rules published after January 1, 2000. As a Federal banking 
agency subject to the provisions of this section, the FDIC has sought 
to present the proposed rule to rescind part 390, subpart M in a simple 
and straightforward manner. The FDIC invites comments on whether the 
proposal is clearly stated and effectively organized, and how the FDIC 
might make the proposal easier to understand.
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    \37\ Public Law 106-102, 113 Stat. 1338, 1471 (codified at 12 
U.S.C. 4809).
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D. Riegle Community Development and Regulatory Improvement Act of 1994

    The Riegle Community Development and Regulatory Improvement Act of 
1994 (RCDRIA) requires that each Federal banking agency, in determining 
the effective date and administrative compliance requirements for new 
regulations that impose additional reporting, disclosure, or other 
requirements on insured depository institutions, consider, consistent 
with principles of safety and soundness and the public interest, any 
administrative burdens that such regulations would place on depository 
institutions, including small depository institutions, and customers of 
depository institutions, as well as the benefits of such regulations. 
In addition, new regulations and amendments to regulations that impose 
additional reporting, disclosure, or other new requirements on insured 
depository institutions generally must take effect on the first day of 
a calendar quarter that begins on or after the date on which the 
regulations are published in final form.\38\ The FDIC invites comments 
that further will inform its consideration of RCDRIA.
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    \38\ 12 U.S.C. 4802.
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E. The Economic Growth and Regulatory Paperwork Reduction Act

    Under Sec.  2222 of the Economic Growth and Regulatory Paperwork 
Reduction Act of 1996 (EGRPRA), the FDIC is required to review all of 
its regulations at least once every 10 years, in order to identify any 
outdated or otherwise unnecessary regulations imposed on insured 
institutions.\39\ The FDIC, along with the other Federal banking 
agencies, submitted a Joint Report to Congress on March 21, 2017, 
(EGRPRA Report) discussing how the review was conducted, what has been 
done to date to address regulatory burden, and further measures that 
will be taken to address issues that were identified. As noted in the 
EGRPRA Report, the FDIC is continuing to streamline and clarify its 
regulations through the OTS rule integration process. By removing 
outdated or unnecessary regulations, such as part 390, subpart M, this 
rule complements other actions the FDIC has taken, separately and with 
the other Federal banking agencies, to further the EGRPRA mandate.
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    \39\ Public Law 104-208, 110 Stat. 3009 (1996).
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List of Subjects in 12 CFR Part 390

    Administrative practice and procedure, Advertising, Aged, Civil 
rights, Conflict of interests, Credit, Crime, Equal employment 
opportunity, Fair housing, Government employees, Individuals with 
disabilities, Reporting and recordkeeping requirements, Savings 
associations.

Authority and Issuance

    For the reasons stated in the preamble, the Federal Deposit 
Insurance Corporation proposes to amend 12 CFR 390 as follows:

PART 390--REGULATIONS TRANSFERRED FROM THE OFFICE OF THRIFT 
SUPERVISION

0
1. Revise the authority citation for part 390 to read as follows:

    Authority: 12 U.S.C. 1819.

    Subpart F also issued under 5 U.S.C. 552; 559; 12 U.S.C. 2901 et 
seq.
    Subpart G also issued under 12 U.S.C. 2810 et seq., 2901 et 
seq.; 15 U.S.C. 1691; 42 U.S.C. 1981, 1982, 3601-3619.
    Subpart O also issued under 12 U.S.C. 1828.
    Subpart Q also issued under 12 U.S.C. 1462; 1462a; 1463; 1464.
    Subpart R also issued under 12 U.S.C. 1463; 1464; 1831m; 1831n; 
1831p-1.
    Subpart S also issued under 12 U.S.C. 1462; 1462a; 1463; 1464; 
1468a; 1817; 1820; 1828; 1831e; 1831o; 1831p-1; 1881-1884; 3207; 
3339; 15 U.S.C. 78b; 78l; 78m; 78n; 78p; 78q; 78w; 31 U.S.C. 5318; 
42 U.S.C. 4106.
    Subpart T also issued under 12 U.S.C. 1462a; 1463; 1464; 15 
U.S.C. 78c; 78l; 78m; 78n; 78w.
    Subpart W also issued under 12 U.S.C. 1462a; 1463; 1464; 15 
U.S.C. 78c; 78l; 78m; 78n; 78p; 78w.
    Subpart Y also issued under 12 U.S.C. 1831o.

[[Page 44563]]

0
2. Remove and reserve part 390, subpart M, consisting of Sec. Sec.  
390.230 and 390.231.

Subpart M--[Removed and Reserved]

* * * * *

    By order of the Board of Directors.

Federal Deposit Insurance Corporation.

    Dated at Washington, DC, on August 20, 2019.
Valerie Best,
Assistant Executive Secretary.
[FR Doc. 2019-18268 Filed 8-23-19; 8:45 am]
BILLING CODE 6714-01-P