Removal of Transferred OTS Regulation Regarding Deposits, 44558-44563 [2019-18268]
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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: https://
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
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SUMMARY:
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documents/materials, is available for
review at https://www.regulations.gov.
All documents in the docket are listed
in the https://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.
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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: https://
www.regulations.gov. Follow the
instructions for submitting comments.
SUMMARY:
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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.
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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
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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
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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
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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.
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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).
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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
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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.
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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.
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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
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redundant of other applicable statutes
and regulations. Under the proposal,
subpart M would be rescinded and that
subpart reserved for future use.
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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.
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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.
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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
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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
https://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.
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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 https://
www.regulations.gov by searching for
and locating Docket No. FAA–2019–
0609.
You may examine the AD docket on
the internet at https://
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 https://
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
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Fmt 4702
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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
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]]>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]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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: https://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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\4\ Codified at 12 U.S.C. 5414(c).
\5\ 76 FR 39246 (July 6, 2011).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\10\ 76 FR 47652 (Aug. 5, 2011).
\11\ See 76 FR 47653.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\12\ See 76 FR 47659.
\13\ 62 FR 55759 (Oct. 22, 1997).
\14\ 62 FR 15627 (Apr. 2, 1997).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
C. Treasury Department Bank Secrecy Act Regulations 17
---------------------------------------------------------------------------
\17\ 31 CFR 1020.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\18\ 31 CFR 1010.100(d)(3).
---------------------------------------------------------------------------
D. Activities Implicating Safety and Soundness; Part 364 19
---------------------------------------------------------------------------
\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.
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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.
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\26\ 12 U.S.C. 1831p-1(e).
\27\ See 12 U.S.C. 1831p-1(e); 12 CFR 308.300, et seq.
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E. FDIC's Deposit Insurance Coverage Criteria 28
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\28\ 12 CFR 330.
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Part 330 of the FDIC's regulations governs the criteria for deposit
insurance coverage at insured depository institutions, including
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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.
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\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
