Temporary Asset Thresholds, 77345-77364 [2020-26138]

Download as PDF 77345 Rules and Regulations Federal Register Vol. 85, No. 232 Wednesday, December 2, 2020 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Parts 3, 4, and 52 [Docket ID OCC–2020–0044] RIN 1557–AF06 FEDERAL RESERVE SYSTEM 12 CFR Parts 208, 211, 212, 217, 225, 235, and 238 [Docket No. R–1731] RIN 7100–AG01 FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Parts 304, 324, 337, 347, and 348 RIN 3064–AF67 Temporary Asset Thresholds Office of the Comptroller of the Currency, Treasury (OCC); Board of Governors of the Federal Reserve System (Board); and Federal Deposit Insurance Corporation (FDIC). ACTION: Interim final rule, request for public comment. AGENCY: To mitigate temporary transition costs on banking organizations related to the coronavirus disease 2019 (COVID event), the OCC, Board, and the FDIC (together, the agencies) are issuing an interim final rule to permit national banks, savings associations, state banks, bank holding companies, savings and loan holding companies, and U.S. branches and agencies of foreign banking organizations with under $10 billion in total assets as of December 31, 2019, (community banking organizations) to use asset data as of December 31, 2019, in order to determine the applicability of various regulatory asset thresholds during calendar years 2020 and 2021. SUMMARY: VerDate Sep<11>2014 20:31 Dec 01, 2020 Jkt 253001 For the same reasons, the Board is temporarily revising the instructions to a number of its regulatory reports to provide that community banking organizations may use asset data as of December 31, 2019, in order to determine reporting requirements for reports due in calendar years 2020 or 2021. DATES: Effective date: This rule is effective on December 2, 2020. Comment date: Comments must be received on or before February 1, 2021. ADDRESSES: Comments should be directed to: OCC: You may submit comments to the OCC by any of the methods set forth below. Commenters are encouraged to submit comments through the Federal eRulemaking Portal, if possible. Please use the title ‘‘Temporary Asset Thresholds’’ to facilitate the organization and distribution of the comments. You may submit comments by any of the following methods: • Federal eRulemaking Portal— Regulations.gov Classic or Regulations.gov Beta. Regulations.gov Classic: Go to https:// www.regulations.gov/. Enter ‘‘Docket ID OCC–2020–0044’’ in the Search Box and click ‘‘Search.’’ Click on ‘‘Comment Now’’ to submit public comments. For help with submitting effective comments, please click on ‘‘View Commenter’s Checklist.’’ Click on the ‘‘Help’’ tab on the Regulations.gov home page to get information on using Regulations.gov, including instructions for submitting public comments. Regulations.gov Beta: Go to https:// beta.regulations.gov/ or click ‘‘Visit New Regulations.gov Site’’ from the Regulations.gov classic homepage. Enter ‘‘Docket ID OCC–2020–0044’’ in the Search Box and click ‘‘Search.’’ Public comments can be submitted via the ‘‘Comment’’ box below the displayed document information or click on the document title and click the ‘‘Comment’’ box on the top-left side of the screen. For help with submitting effective comments, please click on ‘‘Commenter’s Checklist.’’ For assistance with the Regulations.gov Beta site, please call (877) 378–5457 (toll free) or (703) 454–9859 Monday–Friday, 9 a.m.–5 p.m. ET or email to regulations@erulemakinghelpdesk.com. • Mail: Chief Counsel’s Office, Attn: Comment Processing, Office of the PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 Comptroller of the Currency, 400 7th Street SW, Suite 3E–218, Washington, DC 20219. • Hand Delivery/Courier: 400 7th Street SW, Suite 3E–218, Washington, DC 20219. Instructions: You must include ‘‘OCC’’ as the agency name and ‘‘Docket ID OCC–2020–0044’’ in your comment. In general, the OCC will enter all comments received into the docket and publish the comments on the Regulations.gov website without change, including any business or personal information provided such as name and address information, email addresses, or phone numbers. Comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not include any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure. You may review comments and other related materials that pertain to this rulemaking action by the following methods: • Regulations.gov Classic or Regulations.gov Beta: Regulations.gov Classic: Go to https:// www.regulations.gov/. Enter ‘‘Docket ID OCC–2020–0044’’ in the Search box and click ‘‘Search.’’ Click on ‘‘Open Docket Folder’’ on the right side of the screen. Comments and supporting materials can be viewed and filtered by clicking on ‘‘View all documents and comments in this docket’’ and then using the filtering tools on the left side of the screen. Click on the ‘‘Help’’ tab on the Regulations.gov home page to get information on using Regulations.gov. The docket may be viewed after the close of the comment period in the same manner as during the comment period. Regulations.gov Beta: Go to https:// beta.regulations.gov/ or click ‘‘Visit New Regulations.gov Site’’ from the Regulations.gov classic homepage. Enter ‘‘Docket ID OCC 2020–0044’’ in the Search Box and click ‘‘Search.’’ Click on the ‘‘Comments’’ tab. Comments can be viewed and filtered by clicking on the ‘‘Sort By’’ drop-down on the right side of the screen or the ‘‘Refine Results’’ options on the left side of the screen. Supporting Materials can be viewed by clicking on the ‘‘Documents’’ tab and filtered by clicking on the ‘‘Sort By’’ drop-down on the right side of the E:\FR\FM\02DER1.SGM 02DER1 77346 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations screen or the ‘‘Refine Results’’ options on the left side of the screen. For assistance with the Regulations.gov Beta site please call (877) 378–5457 (toll free) or (703) 454–9859 Monday–Friday, 9 a.m.–5 p.m. ET or email regulations@ erulemakinghelpdesk.com. The docket may be viewed after the close of the comment period in the same manner as during the comment period. Board: You may submit comments, identified by Docket No. R–1731 and RIN No. 7100–AG01, by any of the following methods: • Agency Web Site: https:// www.federalreserve.gov. Follow the instructions for submitting comments at https://www.federalreserve.gov/apps/ foia/proposedregs.aspx. • E-mail: regs.comments@ federalreserve.gov. Include docket number and RIN in the subject line of the message. • Fax: (202) 452–3819 or (202) 452– 3102. • Mail: Ann E. Misback, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW, Washington, DC 20551. All public comments are available from the Board’s website at https:// www.federalreserve.gov/generalinfo/ foia/ProposedRegs.cfm as submitted, unless modified for technical reasons or to remove sensitive PII at the commenter’s request. Public comments may also be viewed electronically or in paper form in Room 146, 1709 New York Avenue NW, Washington, DC 20006, between 9:00 a.m. and 5:00 p.m. on weekdays. FDIC: You may submit comments on the notice of proposed rulemaking using any of the following methods: • Agency Website: https:// www.fdic.gov/regulations/laws/federal. Follow the instructions for submitting comments on the agency website. • Email: comments@fdic.gov. Include RIN 3064–AF67 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: Comments may be hand delivered to the guard station at the rear of the 550 17th Street NW building (located on F Street) on business days between 7 a.m. and 5 p.m. • Public Inspection: All comments received, including any personal information provided, will be posted generally without change to https:// www.fdic.gov/regulations/laws/federal. FOR FURTHER INFORMATION CONTACT: OCC: Alison MacDonald, Special Counsel, or Kevin Korzeniewski, VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 Counsel, Chief Counsel’s Office, (202) 649–5490. Board: Juan Climent, Assistant Director, (202) 872–7526, Eric Kennedy, Assistant Director, (202) 263–4887, Nancy J. Oakes, Manager, (202) 452– 3413, Teresa Scott, Manager, (202) 973– 6114, Naima Jefferson, Lead Financial Institution Policy Analyst, (202) 912– 4613, Daniel Newman, Senior Data Governance Analyst, (202) 973–7409, Senait Kahsay, Senior Financial Institution Policy Analyst II, (202) 245– 4209, Joseph Willcox, Senior Financial Institution Policy Analyst II, (202) 452– 3663, Division of Supervision and Regulation; Laurie Schaffer, Deputy General Counsel (202) 452–2272, Benjamin McDonough, Associate General Counsel, (202) 973–7432, Jonah Kind, Counsel (202) 452–2045, Justyna Bolter, Senior Attorney (202) 452–2686, Christopher Danello, Attorney, (202) 736–1960, Legal Division, Board of Governors of the Federal Reserve System, 20th and C Streets NW, Washington, DC 20551. For users of Telecommunication Device for the Deaf (TDD), (202) 263–4869. FDIC: Rae-Ann Miller, Associate Director, Risk Management Policy, (202) 898–3898, Bobby R. Bean, Associate Director, Capital Markets, (202) 898– 6705; William Piervincenzi, Supervisory Counsel, (202) 898–6957, Nefretete A. Smith, Counsel, (202) 898–6851, Michael B. Phillips, Counsel, (202) 898– 3581, Jennifer M. Jones, Counsel, (202) 898–6768, jennjones@fdic.gov, Supervision and Legislation Branch, Legal Division, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. For the hearing impaired only, Telecommunication Device for the Deaf (TDD), (800) 925–4618. SUPPLEMENTARY INFORMATION: Table of Contents I. Background II. Discussion A. Interim Final Rule B. Reservation of Authority C. Regulatory Reporting Changes III. Request for Comment IV. Administrative Law Matters A. Administrative Procedure Act B. Congressional Review Act C. Paperwork Reduction Act D. Regulatory Flexibility Act E. Riegle Community Development and Regulatory Improvement Act of 1994 F. Unfunded Mandates Reform Act of 1995 G. Use of Plain Language I. Background In light of strains in economic conditions related to the COVID event and stress in U.S. financial markets, the agencies have taken a number of actions PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 intended to: (i) Restore market functioning and support the flow of credit to households, businesses, and communities and (ii) increase flexibility and reduce regulatory reporting burden. Among those actions, the agencies have issued a number of rules and supervisory guidance communications designed to mitigate the consequences of the COVID event and to facilitate the safe and effective operations of banking organizations.1 Community banking organizations have played an instrumental role in the nation’s financial response to the COVID event, and many have experienced significant balance sheet growth as a result of the COVID event and the policy response to the event. Policies encouraging banks to work with their customers, such as the Small Business Administration’s (SBA’s) Paycheck Protection Program (PPP) 2 and the interagency statement encouraging financial institutions to work with borrowers affected by the COVID event,3 have resulted in muchneeded emergency liquidity being offered to small businesses, including, but not limited to, individuals operating sole proprietorships or acting as independent contractors, certain franchisees, nonprofit corporations, veterans organizations, Tribal businesses, and households. As a result, during the COVID event many community banking organizations have experienced an unexpected and sharp increase in assets, swelling their balance sheets in some cases by more than 25 percent.4 Much of this growth, 1 See ‘‘Supervisory and Regulatory Actions in Response to COVID–19,’’ available at https:// www.federalreserve.gov/supervisory-regulatoryaction-response-covid-19.htm.; ‘‘COVID–19 (Coronavirus),’’ available at https://occ.gov/topics/ supervision-and-examination/bank-operations/ covid-19-information/convid-19-info-index.html; ‘‘Coronavirus (COVID–19) Information for Bankers and Consumers,’’ available at https://www.fdic.gov/ coronavirus/. See also ‘‘The FDIC Approves Interim Final Rule to Provide Temporary Relief from Part 363 Audit and Reporting Requirements,’’ available at https://www.fdic.gov/news/financial-institutionletters/2020/fil20099.html and Final Rule Mitigating the Deposit Insurance Assessment Effect of Participation in the Paycheck Protection Program (PPP), the PPP Liquidity Facility, and the Money Market Mutual Fund Liquidity Facility at https:// www.fdic.gov/news/financial-institution-letters/ 2020/fil20063.html. 2 The SBA’s PPP was created under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in response to market distress caused by the COVID–19 event. Public Law 116–136, 134 Stat. 281. 3 ‘‘Revised Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus’’ (Apr. 7, 2020), available at https://www.occ.gov/newsissuances/news-releases/2020/nr-ia-2020-50a.pdf. 4 Data derived from the Consolidated Reports of Condition and Income (Call Report) and Financial E:\FR\FM\02DER1.SGM 02DER1 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations particularly that related to participation in PPP, is expected to be temporary. PPP loans are a special asset class of government-guaranteed assets designed to incentivize businesses to keep workers on payroll. To encourage lending to small businesses through the SBA’s PPP, the Board established the PPP Liquidity Facility on April 9, 2019.5 Under the PPP Liquidity Facility, each of the Federal Reserve Banks may extend non-recourse loans to banking organizations that pledge PPP loans, which continue to be assets on the balance sheets of banking organizations, as collateral.6 The last day for lenders to make a PPP loan was August 8, 2020,7 and depending on SBA determinations, a significant amount of PPP debt forgiveness may occur in the fourth calendar quarter of 2020 or early in the first calendar quarter of 2021. However, as a result of the PPP loan forgiveness process, many PPP-related assets remain on community banking organizations’ balance sheets. The SBA recently released a simpler loan forgiveness application for PPP loans of $50,000 or less, which will likely result in PPPrelated assets being removed from community banking organization’s balance sheets at a faster rate.8 According to SBA statistics, collectively all lenders with less than $10 billion in assets originated 2,745,204 PPP loans totaling $233.7 billion, which buttressed the paychecks of more than 26 million American workers and represented more than 52.6 percent of the number of loans originated under the program.9 This data suggests that the percentage of PPP loans originated by community banking organizations far exceeds those organizations’ market share as a percentage of total banking system assets illustrating the outsized impact Statements for Holding Companies (FR Y–9C) data December 31, 2019 to June 30, 2020. 5 See https://www.federalreserve.gov/newsevents/ pressreleases/monetary20200409a.htm. 6 See Paycheck Protection Program Liquidity Facility Term Sheet, available at https:// www.federalreserve.gov/newsevents/pressreleases/ files/monetary20200728a7.pdf. 7 U.S. Small Business Administration, ‘‘Notice: Paycheck Protection Program closed August 8, 2020,’’ available at https://www.sba.gov/fundingprograms/loans/coronavirus-relief-options/ paycheck-protection-program#section-header-0. 8 U.S. Small Business Administration, ‘‘SBA and Treasury Announce Simpler PPP Forgiveness for Loans of $50,000 or Less’’, October 8, 2020 available at https://www.sba.gov/article/2020/oct/08/sbatreasury-announce-simpler-ppp-forgiveness-loans50000-or-less. 9 U.S. Small Business Administration, ‘‘Paycheck Protection Program (PPP) Report: Approvals through 08/08/2020,’’ available at https:// home.treasury.gov/system/files/136/SBA-PaycheckProtection-Program-Loan-Report-Round2.pdf. VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 that participation in the PPP has had on community banking organizations.10 Community banking organizations are subject to a wide range of statutory requirements, regulations, and reporting requirements predicated on their risk profile and asset size.11 Due to their response to the COVID event, many community banking organizations have been, or may soon be, pushed over an asset threshold that could subject them to additional regulation or to additional reporting requirements.12 In the absence of regulatory burden relief, complying with these new or more stringent regulatory standards, especially if the community banking organization’s assets are expected to be above a threshold for a limited time, would impose significant transition and compliance costs on community banking organizations. This interim final rule gives community banking organizations more time to either reduce their balance sheets by shedding temporary growth, or to prepare for higher regulatory and reporting standards. II. Discussion A. Interim Final Rule A number of regulations contain asset-based thresholds that determine whether a banking organization is required to comply with a given regulatory requirement or provide a mandatory regulatory report, or whether a banking organization is otherwise eligible for a particular regulatory treatment. Asset-based regulatory thresholds are meant to ensure that the regulatory requirements applicable to a banking organization are appropriate, given the banking organization’s likely risk profile and, in some cases, the potential risk that the banking organization poses to U.S. financial stability. As discussed above, many community banking organizations have experienced an unexpected and sharp increase in assets since the beginning of the COVID event. This rapid growth has caused the 10 As of the June 30, 2020, approximately 80 percent of depository institutions with assets less than $10 billion reported PPP loans on their Call Report. 11 The agencies recognize there are some guidance documents that include asset-based thresholds of $10 billion or below. In these instances, the agencies are confirming that these thresholds are exemplary only and not suggestive of requirements. For the reasons discussed above, the agencies will take the same perspective on asset-based thresholds in guidance as they are taking with regard to asset-based regulatory thresholds. 12 Based on data as of June 30, 2020, the agencies estimate that around 44 holding companies and 582 community banks crossed a regulatory threshold set at $10 billion or less. PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 77347 assets of certain community banking organizations to rise above certain assetbased thresholds in the agencies’ regulations, and may cause other community banking organizations to do so in the near future. As noted, much of this growth, especially growth related to PPP lending, is likely to be temporary, and the increase in assets currently held by a community banking organization may not reflect a change in the organization’s longer-term risk profile. In the absence of regulatory burden relief, community banking organizations that experience an increase in assets above one or more regulatory thresholds would face significant transition costs necessary to comply with new or more stringent regulatory and reporting standards. Given the rapid and unexpected nature of community banking organization asset growth in 2020, many community banking organizations are unlikely to have planned for these transition costs. Further, to the extent this asset growth is temporary, it does not reflect changes in community banking organizations’ risk profiles, and many community banking organizations that cross above asset-based regulatory thresholds could fall back below the thresholds. Additionally, community banking organizations that are approaching certain asset thresholds in the agencies’ regulations may become reluctant to continue lending if this would subject them to new or more stringent regulatory and reporting standards. Therefore, the agencies believe it is appropriate to provide temporary regulatory burden relief to community banking organizations that have risen above, or will rise above, certain assetbased regulatory thresholds. The relief should promote further lending and avoid potentially temporary, but significant, transition costs that community banking organizations would otherwise face to comply with new standards. In order to provide this regulatory burden relief, the agencies are issuing this interim final rule to temporarily change, for a number of asset-based regulatory thresholds, the date as of when a community banking organization measures its assets for the purpose of determining whether it exceeds the threshold (referred to as the ‘‘measurement date’’). Specifically, the interim final rule will permit community banking organizations, through December 31, 2021, to determine the applicability of certain asset-based regulatory thresholds using asset data as of December 31, 2019, if the organization’s assets as of that date were less than its assets on the date as E:\FR\FM\02DER1.SGM 02DER1 77348 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations of which the applicability of a given threshold would normally be determined. This means that asset growth in 2020 or 2021 will not trigger new regulatory requirements for these community banking organizations until January 1, 2022, at the earliest. This temporary regulatory burden relief reflects that much of the asset growth since the start of the COVID event, especially growth related to PPP lending, is generally expected to be temporary in nature and therefore likely Regulation Regulatory threshold effect does not reflect changes in community banking organizations’ risk profile. The agencies are limiting the regulatory burden relief in this interim final rule to banking organizations that had less than $10 billion in assets as of December 31, 2019. Banking organizations with under $10 billion in assets likely have fewer resources available to prepare and comply with previously unanticipated regulatory requirements, especially during a time of economic uncertainty and disruption. Further, as discussed above, community banking organizations have originated a disproportionately large percentage of PPP loans, as compared with the organizations’ market share; therefore, as compared to larger organizations, a larger portion of any increase in asset size at community banking organizations is likely to be temporary, and is therefore less likely to reflect a change in an organization’s risk profile or business activities. This temporary regulatory burden relief applies to the following assetbased regulatory thresholds: 13 Asset-based threshold 14 Rule location Asset measurement date (prior to January 1, 2022) Asset measurement date (for requirements in 2022) OCC: Capital Adequacy Standards (Part 3). Board: Capital Adequacy of Bank Holding Companies, Savings and Loan Holding Companies, and State Member Banks (Regulation Q). FDIC: Capital Adequacy of FDIC- Supervised Institutions. Board: Debit Card Interchange Fees and Routing (Regulation II). Eligibility for community bank leverage ratio framework. $10 billion in total consolidated assets. OCC: 12 CFR 3.12 ......... Board: 12 CFR 217.12 FDIC: 12 CFR 324.12 December 31, 2019, or the end of the most recent calendar quarter, whichever results in a lower amount. End of the most recent calendar quarter. Exemption for small issuers. $10 billion in assets ........ Board: 12 CFR 235.5(a) December 31, 2021. Board: Management Official Interlocks (Regulation L). FDIC: Management Official Interlocks. Exemption from prohibition on service as a ‘‘management official’’ of multiple institutions. $10 billion in total assets Board: 12 CFR 212.3(c) FDIC: 12 CFR 348.3(c) December 31, 2019, or December 31, 2020, whichever results in a lower amount. December 31, 2019, or the end of the depository organization’s most recent fiscal year, whichever results in a lower amount. Exemption for honorary or advisory directors from definition of ‘‘management official’’. Exemption from relevant metropolitan statistical area prohibition. Interlocks—Major asset prohibition. $100 million in total assets. Board: 12 CFR 212.2(j)(1) FDIC: 12 CFR 348.2(k)(1). Board: 12 CFR 212.3(b) FDIC: 12 CFR 348.3(b). $10 billion ....................... Board: 12 CFR 238.93(c) Audit requirement for safety and soundness purposes. $500 million .................... Board: 12 CFR 238.5(b) Informational requirements for acquisition of a company. $150 million .................... Board: 12 CFR 238.53(c) (2)(iii)–(iv). Board: Savings and Loan Holding Companies (Regulation LL). 13 This interim final rule does not address the exemption in the Board’s Regulation H from certain flood insurance escrow requirements for qualifying state member banks (less than $1 billion in assets as of December 31 of either of the two prior calendar years, provided other conditions are also met), 12 CFR 208.25(e)(3), or the provision in the Board’s Regulation BB defining small bank and intermediate small bank for purposes of determining applicable Community Reinvestment Act evaluation procedures. As currently defined in Regulation BB: a small bank is a bank that, as of December 31 of either of the prior two calendar years, had assets of less than $1.305 billion; an intermediate small bank is a small bank with assets of at least $326 million as of December 31 of both of the prior two calendar years and less than $1.305 VerDate Sep<11>2014 20:31 Dec 01, 2020 Jkt 253001 $50 million in total assets billion as of December 31 of either of the prior two calendar years; and a large bank is a bank with assets of at least $1.305 billion as of December 31 of both of the prior two calendar years, 12 CFR 228.12(u)(1). As indicated, the asset-based thresholds in these provisions take into account assets as of the end of the two previous calendar years. Therefore, the earliest that a bank with assets that did not exceed one of these thresholds as of December 31, 2019, could exceed the threshold is January 1, 2022. As a result, consistent with this interim final rule, asset growth in 2020 or 2021 will not trigger new regulatory requirements until January 1, 2022, at the earliest. For similar reasons, the interim final rule does not adjust thresholds in the OCC and the FDIC’s flood insurance escrow rule at 12 CFR 22.5(c) (OCC) and 12 CFR 339.5(c) (FDIC) PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 End of the most recent fiscal year. December 31, 2019, or End of the most recent the end of the organifiscal year. zation’s most recent fiscal year, whichever results in a lower amount. December 31, 2019, or End of the most recent end of the organizafiscal year. tion’s most recent fiscal year, whichever results in a lower amount. December 31, 2019, or End of the most recent the end of the most recalendar quarter. cent calendar quarter, whichever results in a lower amount. and Community Reinvestment Act regulatory thresholds for small banks and intermediate banks at 12 CFR part 25 (OCC) and 12 CFR 345 (FDIC). The OCC also is not adjusting thresholds for depository institution management interlocks at 12 CFR part 26, as this part already permits any affected bank to request a waiver related to unanticipated asset growth. 14 This interim final rule only provides temporary relief with regard to the measurement date of assets. Other criteria that apply to certain of the affected regulatory provisions remain in effect, and the measurement date for other quantities has not been changed by this interim final rule. E:\FR\FM\02DER1.SGM 02DER1 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations Regulation OCC: Regulatory Reporting (Part 52). Board: Membership of State Banking Institutions in the Federal Reserve System (Regulation H) FDIC: Forms, Instructions, and Reports OCC: Organization and Functions (Part 4, Subpart A). Board: Membership of State Banking Institutions in the Federal Reserve System (Regulation H). FDIC: Unsafe and Unsound Bank Practices. Board: Membership of State Banking Institutions in the Federal Reserve System (Regulation H). Bank Holding Companies and Change in Bank Control (Regulation Y). OCC: Organization and Functions (Part 4, Subpart A). Board: International Banking Operations (Regulation K). FDIC: International Banking. Asset measurement date (prior to January 1, 2022) Asset measurement date (for requirements in 2022) December 31, 2019, or the end of the organization’s most recent fiscal year, whichever results in a lower amount. December 31, 2019, or the end of the organization’s most recent fiscal year, whichever results in a lower amount. December 31, 2019, or June 30, 2020, whichever results in a lower amount. End of the most recent fiscal year. Regulatory threshold effect Asset-based threshold 14 Interlocks—Exemption for honorary or advisory directors from definition of ‘‘management official’’. $100 million .................... Board: 12 CFR 238.92(j)(1) Interlocks—Exemption from relevant metropolitan statistical area prohibition. $50 million ...................... Board: 12 CFR 238.93(b) Eligibility for reduced reporting of the Consolidated Reports of Condition and Income (Call Report). $5 billion ......................... OCC: 12 CFR 52.2 Board: 12 CFR 208.122(b) FDIC: 12 CFR 304.12(a) Eligibility for 18-month examination cycle. $3 billion ......................... OCC: 12 CFR 4.6(b) ...... Board: 12 CFR 208.64(b) FDIC: 12 CFR 337.12(b) December 31, 2019, or the end of the most recent calendar quarter, whichever results in a lower amount. End of most recent calendar quarter. Eligibility for streamlined method of compliance with the reporting requirements of the Securities and Exchange Commission. Various thresholds in the Board’s rules regarding bank holding companies and change in bank control (Regulation Y) concerning filing requirements and permissible activities. $150 million .................... 12 CFR 208.36(b) ........... December 31, 2019, or the end of the bank’s most recent fiscal year, whichever results in a lower amount. End of the most recent fiscal year. $3 billion, $300 million, $150 million, and $50 million. December 31, 2019, or the end of the most recent calendar quarter, whichever results in a lower amount. Normally applicable asset measurement date. Eligibility for an 18-month examination cycle for U.S. branches and agencies of foreign banks. $3 billion ......................... 12 CFR 225.4(b)(2) (iii)(A)–(B), 225.14(a)(1)(v)(A)(1)– (2), 225.14(a)(1)(vi), 224.14(c)(6)(ii), 225.17(a)(6), 225.23(a)(1)(iii)(A)(1)– (2), 225.23(c)(5)(ii), 225.24(a)(2)(iv)–(v), 225.28(b)(11)(vi), and Appendix C. OCC: 12 CFR 4.7(b) ...... Board: 12 CFR 211.26(c)(2) FDIC: 12 CFR 347.211(b) December 31, 2019, or the end of the most recent calendar quarter, whichever results in a lower amount. End of most recent calendar quarter. As a result of this temporary regulatory burden relief, a community banking organization that was below one of the above-listed asset thresholds as of December 31, 2019, generally will be deemed to remain below that threshold through the end of 2021, plus any applicable transition period provided by the regulation. For example, the Board’s rules regarding debit card interchange fees and routing include an exemption for small issuers, which provides that a debit card issuer is not required to comply with certain requirements with respect to an electronic debit transaction if the issuer holds the account that is debited and the issuer, together with its affiliates, VerDate Sep<11>2014 77349 16:10 Dec 01, 2020 Jkt 253001 Rule location has assets of less than $10 billion as of the end of the calendar year preceding the date of the electronic debit transaction.15 Pursuant to this interim final rule, an issuer that, together with its affiliates, had assets of $9.9 billion as of December 31, 2019, $10.1 billion as of December 30, 2020, and $10.1 billion as of December 31, 2021, would be deemed to remain below the $10 billion threshold for purposes of this rule through the end of 2021, at which point the six-month transition period provided by 12 CFR 235.5(a)(3) would begin. Therefore, this issuer would not be required to comply with the Board’s 15 12 PO 00000 CFR 235.5(a). Frm 00005 Fmt 4700 Sfmt 4700 End of the most recent fiscal year. June 30, 2021. rules regarding debit card interchange fees and routing until July 1, 2022. The temporary regulatory burden relief provided by this interim final rule applies through the end of 2021, so that a community banking organization within the scope of the temporary regulatory burden relief will not be required to comply with the regulatory or reporting requirements covered by this interim final rule until the beginning of 2022 (plus any applicable transition period),16 at the earliest, 16 See 12 CFR 3.12(c) (OCC); 12 CFR 217.12(c) (Board); 12 CFR 324.12(c) (FDIC) (community bank leverage ratio framework); 12 CFR 235.5(a)(3) (rules regarding debit card interchange fees and routing). E:\FR\FM\02DER1.SGM 02DER1 77350 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations assuming that the organization remains above the relevant threshold. The agencies have determined not to amend in this interim final rule a provision in the agencies’ regulations regarding section 13 of the Bank Holding Company Act (BHC Act) (commonly known as the Volcker Rule). The Volcker Rule generally applies to ‘‘banking entities,’’ which include insured depository institutions, their affiliates, and any company that controls an insured depository institution, among other companies.17 For purposes of the Volcker Rule, the definition of ‘‘insured depository institution’’ excludes an insured depository institution if the insured depository institution, and every entity that controls it, has total consolidated assets equal to or less than $10 billion, as long as the total consolidated trading assets and liabilities of the insured depository institution, and every entity that controls it, are equal to or less than five percent of the insured depository institution’s total consolidated assets.18 The agencies have determined that it is not necessary to amend the Volcker Rule regulations in order to provide temporary regulatory burden relief to a bank or any of its subsidiaries or affiliates that become a ‘‘banking entity’’ for purposes of the Volcker Rule because the assets of the bank or any entity that controls it increase above the $10 billion asset threshold. Under section 13 of the BHC Act and the Board’s rule implementing the conformance period in the Volcker Rule,19 an entity that newly becomes a ‘‘banking entity’’ for purposes of the Volcker Rule has two years to come into compliance with the requirements of the Volcker Rule, and may seek an extension of the conformance period from the Board.20 A banking entity that ceases to be a banking entity during that period—for example by virtue of reducing its asset size—would no longer be subject to the Volcker Rule. The regulation implementing the statutory Volcker Rule conformance period have not yet been updated to 17 12 CFR 44.2(c) (OCC); 12 CFR 248.2(c) (Board); 12 CFR 324.12(c) (FDIC). 18 12 CFR 44.2(r) (OCC); 12 CFR 248.2(r)(2) (Board); 12 CFR 351.2(r)(2) (FDIC). The Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), enacted on May 24, 2018, amended section 13 of the BHC Act by modifying the definition of ‘‘banking entity,’’ to exclude certain small firms from section 13’s restrictions. EGRRCPA, Public Law 115–174, section 203 (May 24, 2018). This amendment was effective upon EGRRCPA’s enactment. 19 Pursuant to sections (c)(2) and (c)(6) of the Volcker Rule (12 U.S.C. 1851(c)(2) and (c)(6)), the Board has sole authority to issue rules to implement the Volcker Rule conformance period. 20 See 12 CFR 225.181(a)(2), (3). VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 account for the change in the definition of ‘‘banking entity’’ implemented by EGRRCPA. However, the Board notes that because the changes EGRRCPA made to the Volcker Rule were effective immediately upon enactment, the conformance period regulation should be read in a way that is consistent with EGRRCPA and takes into account the amendments it made to the definition of ‘‘banking entity.’’ Under this interpretation, a company may become a new banking entity by virtue of crossing the $10 billion asset threshold under the definition of ‘‘banking entity,’’ as amended by EGRRCPA. Therefore, for the sake of clarification, the Board confirms that a company that was not a banking entity, or a subsidiary or affiliate of a banking entity, and then becomes a banking entity for purposes of the Volcker Rule because it, or any subsidiary or affiliate, exceeds $10 billion in assets, will qualify for the conformance period described in the Volcker Rule and the Board’s implementing regulations.21 This interpretation covers any company that crossed the $10 billion asset threshold after the enactment of EGRRCPA on May 24, 2018, including a company that crossed the threshold after December 31, 2019. A. Reservation of Authority The temporary regulatory burden relief described above is generally available to community banking organizations that meet the requirements described above. However, there may be limited instances in which such regulatory burden relief would be inappropriate. In order to address certain such situations, the agencies may use existing reservations of authority in their respective regulations to require a community banking organization to comply with a given regulatory requirement that would otherwise not be applicable to the organization pursuant to the relief provided by this interim final rule. Additionally, with respect to each of the asset-based regulatory thresholds that did not previously include a reservation of authority, the interim final rule creates a new reservation of authority pursuant to which an agency may determine that a community banking organization is not eligible to use the 21 Although the conformance regulation refers to a requirement that a company was not a banking entity as of July 21, 2010, EGRRCPA’s change to the definition of ‘‘banking entity’’ means that a firm that was below the asset threshold as of July 21, 2010, regardless of whether it was subject to the Volcker Rule at the time, is eligible for the conformance period if it becomes a banking entity due to exceeding the asset threshold. PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 relief provision with respect to one or more of the asset thresholds covered by the rule if the relevant agency makes an institution-specific determination that permitting the institution to determine its assets in accordance with that relief provision would not be appropriate based on the organization’s risk profile.22 23 When making any such determination, the agencies would consider all relevant factors, including the extent of asset growth of the community banking organization since December 31, 2019; the causes of such growth, including whether growth occurred as a result of mergers or acquisitions; whether such growth is likely to be temporary or permanent; whether the community banking organization has become involved in any additional activities since December 31, 2019, and, if so, the risk of such activities; the asset size of any parent companies; and the type of assets held by the community banking organization.24 22 With respect to the exemption for small issuers from the Board’s rules regarding debit card interchange fees and routing, the reservation of authority will concern a determination related to the issuer’s asset profile, rather than its risk profile, due to differences in the relevant statutory framework. 23 The interim final rule does not include a new reservation of authority in connection with the temporary relief provided with respect to the $3 billion threshold in the agencies’ rules that determines, in part, a depository institution’s eligibility for an 18-month examination cycle, because the rules already contain a reservation of authority pursuant to which each agency may examine any depository institution that it supervises as frequently as the agency deems necessary. 12 CFR 4.6(c) and 4.7(c) (OCC); 12 CFR 208.64(c) (Board); 12 CFR 337.12(c) and 12 CFR 347.211(c) (FDIC). Amendments to the agencies’ capital regulations governing eligibility for use of the community bank leverage ratio framework and regulations affecting the prohibition on certain management official interlocks each include a reservation of authority. The agencies may exercise this reservation of authority to determine that such relief provisions shall not apply to a supervised institution if the relevant agency determines that such relief would not be commensurate with the risk posed by the institution. Amendments to the regulations governing eligibility to use the FFIEC 051 do not include new reservations of authority because the existing reservations of authority would continue to apply. The existing Call Reports rules reserve the authority of each agency to require a depository intuition otherwise eligible for reduced reporting to file the FFIEC 041 version of the report of condition. 12 CFR 52.4 (OCC); 12 CFR 304.14 (FDIC). 24 The temporary regulatory burden relief provided by this interim final rule does not eliminate any existing authority of the Board to apply a regulatory standard, such as a standard related to application processing, to a community banking organization that, due to its asset size, would otherwise not qualify for the standard. For example, a bank holding company that meets certain characteristics, including asset-size limits, may be eligible for streamlined application processing. However, the Board or its delegatee may in its discretion notify such organizations that a full application is required in order to permit a closer E:\FR\FM\02DER1.SGM 02DER1 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations In particular, in determining that the community banking organization is not eligible to use a regulatory burden relief provision, the relevant agency will consider whether a community banking organization crossed an asset-based regulatory threshold due to a merger or acquisition that significantly increases the community banking organization’s asset size. Asset growth that occurs as a result of a merger or acquisition is planned, unlike the growth that many community banking organizations have experienced since the beginning of the COVID event. Community banking organizations crossing a regulatory threshold as a result of a merger or acquisition therefore have had the opportunity to prepare for the change in regulatory requirements. Additionally, asset growth caused by a merger or acquisition is generally expected to be permanent and therefore not impose transition costs for a requirement expected to be temporary. The reservations of authority included in this interim final rule are not limited to situations in which there has been a merger or acquisition because, even in the absence of a merger or acquisition transaction, significant asset growth at a community banking organization may reflect a material change in the business model, risk profile, or complexity of the community banking organization. Nonetheless, the agencies expect to apply the reservation of authority only in limited circumstances, such as when there is significant growth due to a merger or acquisition or when there is a material change in the business model, risk profile, or complexity of the community banking organization. B. Regulatory Reporting Changes Similar to the Board’s regulations, a number of the Board’s regulatory reports contain asset-based thresholds that determine whether a banking organization is required to report certain information. For the same reason that the Board is providing the regulatory burden relief discussed above with regard to determining the applicability of asset-based thresholds contained in the Board’s regulations, the Board is temporarily revising certain of its regulatory reports that contain assetbased reporting thresholds set at $10 billion or less pursuant to the Board’s authority to temporarily revise a collection of information without providing the opportunity for public comment. This regulatory burden relief applies to reports with as-of dates up to and including December 31, 2021. Specifically, with regard to each of the regulatory reports discussed below, through December 31, 2021, a banking organization will be permitted to determine the applicability of assetbased reporting thresholds set at $10 billion or less using asset data as of December 31, 2019, if the organization’s assets as of that date were less than its assets on the date as of which the applicability of a given threshold would normally be determined. The revisions to the affected reports do not affect the substantive reporting instructions for any item, schedule, or report. Rather, they merely affect which banking organizations are required to report certain items, schedules, or reports. 77351 As with regard to asset-based regulatory thresholds, and for the same reasons, the Board will retain a reservation of authority with regard to each of the affected reports, pursuant to which the Board would retain the authority to require a banking organization to use an asset measurement date other than December 31, 2019, to determine compliance with a reporting threshold. The Board will use the same factors in determining whether to exercise its reservation of authority with regard to reporting thresholds as with regard to regulatory thresholds. The regulatory burden relief discussed above applies to the following information collections: • Financial Statements for Holding Companies (FR Y–9 Reports; OMB No. 7100–0128); • Statements of U.S. Nonbank Subsidiaries of U.S. Holding Companies (FR Y–11 and FR Y–11S; 7100–0244); • Reports of Foreign Banking Organizations (FR Y–7N, FR Y–7NS, and FR Y–7Q; 7100–0125); and • Statements of Foreign Subsidiaries of U.S. Banks (FR 2314 and FR 2314S; OMB No. 7100–0073). The agencies plan to publish a separate Federal Register notice that will address corresponding changes to the Call Reports. The following chart summarizes the manner in which banking organizations will be required to determine the applicability of various reporting thresholds through the end of 2021 and afterwards. TABLE 1—REPORTING REQUIREMENTS FOR AFFECTED FEDERAL RESERVE REPORTS UNDER THE INTERIM FINAL RULE AND AFTER REGULATORY BURDEN RELIEF ENDS 1 Information collection Reporting applicability for 2020–2021 Filers use assets as of these dates to determine reporting requirement for 2022 2 FR Y–9C (quarterly)—Consolidated Financial Statements for Holding Companies. Report filing not required for holding company below the $3 billion asset threshold using the lesser of most current filing applicable date or 12/31/2019 as-of-date. Report filing not required for holding company below the $3 billion asset threshold using the lesser of most current filing applicable date or 12/31/2019 as-of-date. Use 06/30/2021 total assets to determine reporting applicability for reports with 2022 asof dates. Certain provisions of the Board’s Regulation Y include asset-based thresholds of $10 billion or below that are based on the pro forma consolidated assets of a bank holding company or the consolidated risk-weighted assets of a bank holding company immediately following consummation of a proposed transaction. With regard to these thresholds, the interim final rule permits bank holding companies, through 2021, to calculate pro forma assets by adding together the assets that each company involved in a business combination had as of December 31, 2019. However, the calculation of pro forma or combined assets must also include the December 31, 2019, assets of any company with which any company that is party to a proposed business combination has itself combined with since December 31, 2019. FR Y–9LP (quarterly)—Parent Company Only Financial Statements for Large Holding Companies. review of the proposal. Nothing in this interim final rule affects the Board’s authority to exercise such discretion, to request information that is needed to analyze the relevant statutory factors for an application or notice, or to consider the ability of a community banking organization that files a notice or application with the Board to comply with statutory or regulatory requirements that may be applicable to the organization upon expiration of the relief provided by this interim final rule. VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 Use 06/30/2021 total assets to determine reporting applicability for reports with 2022 asof dates. E:\FR\FM\02DER1.SGM 02DER1 77352 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations TABLE 1—REPORTING REQUIREMENTS FOR AFFECTED FEDERAL RESERVE REPORTS UNDER THE INTERIM FINAL RULE AND AFTER REGULATORY BURDEN RELIEF ENDS 1—Continued Information collection Reporting applicability for 2020–2021 Filers use assets as of these dates to determine reporting requirement for 2022 2 FR Y–11 (quarterly)—Financial Statements of U.S. Nonbank Subsidiaries of U.S. Bank Holding Companies. Quarterly report filing not required if nonbank subsidiary had assets of at least $500 million but less than $1 billion using the lesser of most current filing applicable date or 12/ 31/2019 as-of-date and does not meet any the other criteria to file quarterly. Annual report filing not required if nonbank subsidiary has assets of less than $500 million using the lesser of most current filing applicable date or 12/31/2019 as-of-date. Report filing not required if nonbank subsidiary was not greater than $250 million and less than $500 million using the lesser of most current filing applicable date or 12/ 31/2019 as-of-date and does not meet the other filing criteria. Quarterly report filing not required if nonbank subsidiary was below the $1 billion asset threshold using the lesser of most current filing applicable date or 12/31/2019 as-ofdate and does not meet any other filing criteria. Report filing not required if nonbank subsidiary was not greater than $500 million and less than $1 billion using lesser of most current filing applicable date or 12/31/2019 as-of-date and does not meet any other filing criteria. Report filing not required if nonbank subsidiary was not greater than $250 million and less than $500 million using the lesser of most current filing applicable date or 12/ 31/2019 as-of-date and does not meet the other filing criteria. Quarterly report filing not required if nonbank subsidiary has assets less than $1 billion using the lesser of most current filing applicable date or 12/31/2019 as-of-date and does not meet any of other criteria to file quarterly. Report filing not required if nonbank was not greater than $500 million and less than $1 billion in total assets using lesser of most current filing applicable date or 12/31/2019 as-of-date. Report filing not required if nonbank was not greater than $250 million and less than $500 million in total asset using the lesser of most current filing applicable date or 12/ 31/2019 as-of-date. Use 06/30/2021 total assets to determine eligibility for reports with 2022 as-of dates. FR Y–11 (annual)—Financial Statements of U.S. Nonbank Subsidiaries of U.S. Bank Holding Companies. FR Y–11S (annual)—Abbreviated Financial Statements of U.S. Nonbank Subsidiaries of U.S. Holding Co. FR Y–7N (quarterly)—Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations. FR Y–7N (annual)—Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations. FR Y–7NS (annual)—Abbreviated Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations. FR 2314 (quarterly)—Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations. FR 2314 (annual)—Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations. FR 2314S (annual)—Abbreviated Financial Statements of Foreign Subsidiaries of U.S. Banking Org. Use total assets as of the reporting as-of date (12/31/2022) to determine reporting applicability. Use total assets as of the reporting as-of date (12/31/2022) to determine reporting applicability. Use total assets as of the reporting as-of date to determine reporting applicability. Use total assets as of the reporting as-of date (12/31/2022) to determine reporting applicability. Use total assets as of the reporting as-of date (12/31/2022) to determine reporting applicability. Use 06/30/2021 total assets to determine eligibility for reports with 2022 as-of dates. Use total assets as of the reporting as-of date (12/31/2022) to determine reporting applicability. Use total assets as of the reporting as-of date (12/31/2022) to determine reporting applicability. 1 During 2020–2021, applicability of new reporting requirements would be based on the December 31, 2019 data. For example, a holding company that does not currently file the FR Y–9C will not use its June 2020 total consolidated assets (TCA) to determine the March 31, 2021, filing requirement, and would not be required to file the FR Y–9C report until March 21, 2022. After the regulatory burden relief ends, the institution would use June 30, 2021, TCA to determine initial filing for the March 31, 2022, reporting period. 2 Beginning January 1, 2022, asset measurement for applicability of reporting will revert-back to how institutions determined applicability prior to the reporting relief. II. Request for Comment The agencies seek comment on all aspects of this interim final rule. In particular, the agencies seek comment on the duration of the temporary regulatory burden relief and on the following specific question: (1): What are the advantages and disadvantages of requiring community banking organizations subject to this VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 interim final rule to determine compliance with regulatory thresholds using the lesser of an organization’s assets as of December 31, 2019, and its assets on the date as of which the applicability of a given threshold would normally be determined? What would be the advantages and disadvantages of an alternative measurement date? Commenters are invited to describe PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 other dates and the advantages and disadvantages of any such dates. III. Administrative Law Matters A. Administrative Procedure Act The agencies are issuing the interim final rule without prior notice and the opportunity for public comment and without the 30-day delayed effective date ordinarily prescribed by the E:\FR\FM\02DER1.SGM 02DER1 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations Administrative Procedure Act (APA).25 Pursuant to section 553(b)(B) of the APA, general notice and the opportunity for public comment are not required with respect to a rulemaking when an ‘‘agency for good cause finds (and incorporates the finding and a brief statement of reasons therefor in the rules issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.’’ 26 As discussed above, the interim final rule provides temporary regulatory burden relief to community banking organizations crossing regulatory and reporting asset thresholds in 2020 and 2021. Many community banking organizations have experienced dramatic and unexpected increases in their assets as a result of their efforts to support the economy during the ongoing COVID event. As noted, a significant portion of this asset growth can be traced to participation by community banking organizations in emergency lending programs sponsored by the U.S. government, other lending related to the COVID event, and an unexpected surge in deposits. The interim final rule facilitates the ability of community banking organizations to temporarily defer the implementation of regulatory and reporting thresholds that would not have been applicable had they not experienced this growth in assets. Therefore, the interim final rule benefits community banking organizations from the above referenced regulations and reports by providing temporary regulatory burden relief. The interim final rule does not impose any requirements on any covered community banking organizations. The agencies believe that the public interest is best served by making the interim final rule effective immediately upon publication in the Federal Register. The agencies believe that issuing the interim final rule will ensure that community banking organizations will not be unnecessarily required to comply with threshold-based regulatory standards that may not be appropriate given the organizations’ likely long-term risk profile and activities after the reversal of any temporary growth. The interim final rule also will allow community banking organizations to avoid the costs of temporarily complying with regulatory requirements, allowing the banking organizations to continue to focus on the provision of credit during this time of economic stress. In addition, the agencies believe that providing a notice and comment period prior to issuance of the interim final rule is impracticable, as community banking organizations may start incurring transition costs prior to the end of 2020 in anticipation of needing to comply with additional requirements starting as early as December 31, 2020. For these reasons, the agencies find there is good cause consistent with the public interest to issue the interim final rule without advance notice and comment. The APA also requires a 30-day delayed effective date, except for (1) substantive rules which grant or recognize an exemption or relieve a restriction; (2) interpretative rules and statements of policy; or (3) as otherwise provided by the agency for good cause.27 The agencies find good cause to publish the interim final rule with an immediate effective date for the same reasons set forth above under the discussion of section 553(b)(B) of the APA. While the agencies believe there is good cause to issue the interim final rule without advance notice and comment and with an immediate effective date, the agencies are requesting comment on all aspects of the interim final rule. B. Congressional Review Act For purposes of Congressional Review Act (CRA), OMB makes a determination as to whether a final rule constitutes a ‘‘major’’ rule.28 If a rule is deemed a ‘‘major rule’’ by the OMB, the CRA generally provides that the rule may not take effect until at least 60 days following its publication.29 The CRA defines a ‘‘major rule’’ as any rule that the Administrator of the Office of Information and Regulatory Affairs of the OMB finds has resulted in or is likely to result in (1) an annual effect on the economy of $100,000,000 or more; (2) a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies or geographic regions, or (3) significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreignbased enterprises in domestic and export markets.30 For the same reasons set forth above, the agencies are adopting the interim final rule without the delayed effective date generally prescribed under the CRA. The delayed effective date 27 5 U.S.C. 553(d). U.S.C. 801 et seq. 29 5 U.S.C. 801(a)(3). 30 5 U.S.C. 804(2). 28 5 25 5 U.S.C. 553. U.S.C. 553(b)(B). 26 5 VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 PO 00000 Frm 00009 Fmt 4700 required by the CRA does not apply to any rule for which an agency for good cause finds (and incorporates the finding and a brief statement of reasons therefor in the rule issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest. In light of current market uncertainty and because community banking organizations may start incurring transition costs prior to the end of 2020 in anticipation of needing to comply with additional requirements starting as early as December 31, 2020, the agencies believe that delaying the effective date of the rule would be contrary to the public interest. As required by the CRA, the agencies will submit the final rule and other appropriate reports to Congress and the Government Accountability Office for review. C. Paperwork Reduction Act The Paperwork Reduction Act of 1995 (PRA) states that no agency may conduct or sponsor, nor is a respondent required to respond to, an information collection unless it displays a currently valid OMB control number.31 The interim final rule affects the agencies’ current information collections for the Call Reports (FFIEC 031, FFIEC 041, and FFIEC 051). The OMB control numbers for the Call Reports of the agencies are: OCC OMB No. 1557–0081; Board OMB No. 7100–0036; and FDIC OMB No. 3064–0052. For purposes of the Call Reports, any change resulting from the relief provided by this interim final rule should be minimal and result in a zero net change in hourly burden under the agencies’ information collections. Submissions will, however, be made by the agencies to OMB. The changes to the instructions of the Call Reports will be addressed in a separate Federal Register notice. In addition, this interim final rule does not introduce any new information collections. It does, however, temporarily impact the following information collections: FR Y–9 Reports; FR Y–11; FR Y–11S; FR Y–7N; FR Y–7NS; FR 2314; and FR 2314S. The Board has reviewed this interim final rule pursuant to authority delegated by the OMB. The Board has temporarily revised the instructions for these information collections to reflect changes made in the interim final rule. On June 15, 1984, OMB delegated to the Board authority under the PRA to approve a temporary revision to a collection of information without 31 44 Sfmt 4700 77353 E:\FR\FM\02DER1.SGM U.S.C. 3501–3521. 02DER1 77354 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations providing opportunity for public comment if the Board determines that a change in an existing collection must be instituted quickly and that public participation in the approval process would defeat the purpose of the collection or substantially interfere with the Board’s ability to perform its statutory obligation. The Board’s delegated authority requires that the Board, after temporarily approving a collection, solicit public comment on a proposal to extend the temporary collection for a period not to exceed three years. Therefore, the Board is inviting comment on a proposal to extend these information collections for three years with such revisions. The Board invites public comment on the information collections, which are being reviewed under authority delegated by the OMB under the PRA. Comments are invited on the following: a. Whether the collections of information are necessary for the proper performance of the Board’s functions, including whether the information has practical utility; b. The accuracy of the Board’s estimate of the burden of the proposed information collections, including the validity of the methodology and assumptions used; c. Ways to enhance the quality, utility, and clarity of the information to be collected; d. Ways to minimize the burden of information collection on respondents, including through the use of automated collection techniques or other forms of information technology; and e. Estimates of capital or startup costs and costs of operation, maintenance, and purchase of services to provide information. Comments must be submitted on or before February 1, 2021. At the end of the comment period, the comments and recommendations received will be analyzed to determine the extent to which the Board should modify the information collection. Approval Under OMB Delegated Authority of the Temporary Revision of, and Proposal To Extend for Three Years, With Revision, the Following Information Collections 1. Report Title: Financial Statements for Holding Companies Agency form number: FR Y–9C, FR Y– 9LP, FR Y–9SP, FR Y–9ES, and FR Y– 9CS. OMB control number: 7100–0128. Effective date: December 2, 2020. Frequency: Quarterly, semiannually, and annually. VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 Respondents: Bank holding companies, savings and loan holding companies, securities holding companies, and U.S. intermediate holding companies (collectively, holding companies). Estimated number of respondents: FR Y–9C (non-advanced approaches community bank leverage ratio holding companies with less than $5 billion in total assets): 71; FR Y–9C (nonadvanced approaches community bank leverage ratio holding companies with $5 billion or more in total assets): 35; FR Y–9C (non-advanced approaches, noncommunity bank leverage ratio, holding companies with less than $5 billion in total assets): 84; FR Y–9C (nonadvanced approaches, non-community bank leverage ratio holding companies, with $5 billion or more in total assets): 154; FR Y–9C (advanced approaches holding companies): 19; FR Y–9LP: 434; FR Y–9SP: 3,960; FR Y–9ES: 83; FR Y– 9CS: 236. Estimated annual burden hours: Reporting FR Y–9C (non-advanced approaches community bank leverage ratio holding companies with less than $5 billion in total assets): 8,284 hours; FR Y–9C (nonadvanced approaches community bank leverage ratio holding companies with $5 billion or more in total assets): 4,920; FR Y–9C (non-advanced approaches non community bank leverage ratio holding companies with less than $5 billion in total assets): 13,779; FR Y–9C (non-advanced approaches noncommunity bank leverage ratio holding companies with $5 billion or more in total assets): 28,940 hours; FR Y–9C (advanced approaches holding companies): 3,747 hours; FR Y–9LP: 9,149 hours; FR Y–9SP: 42,768 hours; FR Y–9ES: 42 hours; FR Y–9CS: 472 hours. Recordkeeping FR Y–9C (non-advanced approaches holding companies with less than $5 billion in total assets): 620 hours; FR Y– 9C (non-advanced approaches holding companies with $5 billion or more in total assets): 756 hours; FR Y–9C (advanced approaches holding companies): 76 hours; FR Y–9LP: 1,736 hours; FR Y–9SP: 3,960 hours; FR Y– 9ES: 42 hours; FR Y–9CS: 472 hours. General description of report: The FR Y–9 family of reporting forms continues to be the primary source of financial data on holding companies that examiners rely on in the intervals between on-site inspections. Financial data from these reporting forms are used to detect emerging financial problems, to review performance and conduct pre- PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 inspection analysis, to monitor and evaluate capital adequacy, to evaluate holding company mergers and acquisitions, and to analyze a holding company’s overall financial condition to ensure the safety and soundness of its operations. The FR Y–9C, FR Y–9LP, and FR Y–9SP serve as standardized financial statements for the consolidated holding company. The Board requires holding companies to provide standardized financial statements to fulfill the Board’s statutory obligation to supervise these organizations. The FR Y–9ES is a financial statement for holding companies that are Employee Stock Ownership Plans. The Board uses the voluntary FR Y–9CS (a free-form supplement) to collect additional information deemed to be critical and needed in an expedited manner. Holding companies file the FR Y–9C quarterly, the FR Y–9LP quarterly, the FR Y–9SP semiannually, the FR Y–9ES annually, and the FR Y–9CS on a schedule that is determined when this supplement is used. Legal authorization and confidentiality: The Board has the authority to impose the reporting and recordkeeping requirements associated with the FR Y–9 family of reports on bank holding companies pursuant to section 5 of the BHC Act, (12 U.S.C. 1844); on savings and loan holding companies pursuant to section 10(b)(2) and (3) of the Home Owners’ Loan Act, (12 U.S.C. 1467a(b)(2) and (3)); on U.S. intermediate holding companies pursuant to section 5 of the BHC Act, (12 U.S.C 1844), as well as pursuant to sections 102(a)(1) and 165 of the DoddFrank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), (12 U.S.C. 511(a)(1) and 5365); and on securities holding companies pursuant to section 618 of the Dodd-Frank Act, (12 U.S.C. 1850a(c)(1)(A)). The FR Y–9 series of reports, and the recordkeeping requirements set forth in the respective instructions to each report, are mandatory, except for the FR Y–9CS, which is voluntary. With respect to the FR Y–9C, Schedule HI Memoranda item 7.g, Schedule HC–P item 7.a, and Schedule HC–P item 7.b are considered confidential commercial and financial information under exemption 4 of the Freedom of Information Act (FOIA), (5 U.S.C. 552(b)(4)), as is Schedule HC Memoranda item 2.b for both the FR Y– 9C and FR Y–9SP reports. Such treatment is appropriate under exemption 4 of the FOIA (5 U.S.C. 552(b)(4)) because these data items reflect commercial and financial information that is both customarily and actually treated as private by the E:\FR\FM\02DER1.SGM 02DER1 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations submitter, and which the Board has previously assured submitters will be treated as confidential. It also appears that disclosing these data items may reveal confidential examination and supervisory information, and in such instances, this information would also be withheld pursuant to exemption 8 of the FOIA (5 U.S.C. 552(b)(8)), which protects information related to the supervision or examination of a regulated financial institution. In addition, for both the FR Y–9C report and the FR Y–9SP report, Schedule HC Memoranda item 2.b, the name and email address of the external auditing firm’s engagement partner, is considered confidential commercial information and protected by exemption 4 of the FOIA (5 U.S.C. 552(b)(4)) if the identity of the engagement partner is treated as private information by holding companies. The Board has assured respondents that this information will be treated as confidential since the collection of this data item was proposed in 2004. Additionally, items on the FR Y–9C, Schedule HC–C regarding loans modified under Section 4013 (Memoranda item 16.a, ‘‘Number of Section 4013 loans outstanding’’, and Memoranda item 16.b, ‘‘Outstanding balance of Section 4013 loans’’) are considered confidential. While the Board generally makes institution-level FR Y–9C report data publicly available, the Board believes the disclosure of these items at the holding company level would not be in the public interest.32 Such information is permitted to be collected on a confidential basis, consistent with 5 U.S.C. 552(b)(8).33 Holding companies may be reluctant to offer modifications under Section 4013 if information on these modifications is publicly available, as analysts, investors, and other users of public FR Y–9C report information may penalize an institution for using the relief provided by the CARES Act. Aside from the data items described above, the remaining data items on the FR Y–9 report and the FR Y–9SP report are generally not accorded confidential treatment. The data items collected on FR Y–9LP, FR Y–9ES, and FR Y–9CS reports, are also generally not accorded confidential treatment. As provided in the Board’s Rules Regarding Availability 32 See 12 U.S.C. 1464(v)(2). 8 of the Freedom of Information Act (FOIA) specifically exempts from disclosure information ‘‘contained in or related to examination, operating, or condition reports prepared by, on behalf of, or for the use of an agency responsible for the regulation or supervision of financial institutions.’’ 33 Exemption VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 of Information (12 CFR part 261), however, a respondent may request confidential treatment for any data items the respondent believes should be withheld pursuant to a FOIA exemption. The Board will review any such request to determine if confidential treatment is appropriate, and will inform the respondent if the request for confidential treatment has been denied. To the extent that the instructions to the FR Y–9C, FR Y–9LP, FR Y–9SP, and FR Y–9ES reports each respectively direct a financial institution to retain the workpapers and related materials used in preparation of each report, such material would only be obtained by the Board as part of the examination or supervision of the financial institution. Accordingly, such information may be considered confidential pursuant to exemption 8 of the FOIA (5 U.S.C. 552(b)(8)). In addition, the financial institution’s workpapers and related materials may also be protected by exemption 4 of the FOIA, to the extent such financial information is treated as confidential by the respondent (5 U.S.C. 552(b)(4)). 2. Report Title: Financial Statements of U.S. Nonbank Subsidiaries of U.S. Holding Companies and Abbreviated Financial Statements of U.S Nonbank Subsidiaries of U.S. Holding Companies Agency form number: FR Y–11 and FR Y–11S. OMB control number: 7100–0244. Effective date: December 2, 2020. Frequency: Quarterly and annually. Respondents: Domestic bank holding companies, savings and loan holding companies, securities holding companies, and intermediate holding companies. Estimated number of respondents: FR Y–11 (quarterly): 445; FR Y–11 (annually): 189; FR Y–11S: 273. Estimated annual burden hours: FR Y–11 (quarterly): 13,528 hours; FR Y–11 (annually): 1,436 hours; FR Y–11S: 273 hours. General description of report: The FR Y–11 family of reports collects financial information for individual U.S. nonbank subsidiaries of domestic holding companies, which is essential for monitoring the subsidiaries’ potential impact on the condition of the holding company or its subsidiary banks. Holding companies file the FR Y–11 on a quarterly or annual basis or the FR Y– 11S on an annual basis, predominantly based on whether the organization meets certain asset size thresholds. Legal authorization and confidentiality: The Board has the authority to require bank holding companies and any subsidiary thereof, PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 77355 savings and loan holding companies and any subsidiary thereof, and securities holding companies and any affiliate thereof to file the FR Y–11 pursuant to, respectively, section 5(c) of the BHC Act (12 U.S.C. 1844(c)), section 10(b) of the Homeowners’ Loan Act (12 U.S.C. 1467a(b)), and section 618 of the Dodd-Frank Act (12 U.S.C. 1850a). Information collected in these reports generally is not considered confidential. However, because the information is collected as part of the Board’s supervisory process, certain information may be afforded confidential treatment pursuant to exemption 8 of the FOIA (5 U.S.C. 552(b)(8)). Individual respondents may request that certain data be afforded confidential treatment pursuant to exemption 4 of the FOIA if the data has not previously been publically disclosed and the release of the data would likely cause substantial harm to the competitive position of the respondent (5 U.S.C. 552(b)(4)). Additionally, individual respondents may request that personally identifiable information be afforded confidential treatment pursuant to exemption 6 of the FOIA if the release of the information would constitute a clearly unwarranted invasion of personal privacy (5 U.S.C. 552(b)(6)). The applicability of the FOIA exemptions 4 and 6 would be determined on a caseby-case basis. 3. Report Title: The Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations, Abbreviated Financial Statements of U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations, and the Capital and Asset Report of Foreign Banking Organizations Agency form number: FR Y–7N, FR Y–7NS, and FR Y–7Q. OMB control number: 7100–0125. Effective date: December 2, 2020. Frequency: Quarterly and annually. Respondents: Foreign banking organizations. Estimated number of respondents: FR Y–7N (quarterly): 35; FR Y–7N (annually): 19; FR Y–7NS: 22; FR Y–7Q (quarterly): 130; FR Y–7Q (annually): 29. Estimated annual burden hours: FR Y–7N (quarterly): 1,064 hours; FR Y–7N (annually): 144 hours; FR Y–7NS: 22 hours; FR Y–7Q (quarterly): 1,560 hours; FR Y–7Q (annually): 44 hours. General description of report: The FR Y–7N and the FR Y–7NS are used to assess a foreign banking organization’s ability to be a continuing source of strength to its U.S. nonbank operations and to determine compliance with U.S. E:\FR\FM\02DER1.SGM 02DER1 77356 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations laws and regulations. Foreign banking organizations file the FR Y–7N quarterly or annually, or the FR Y–7NS annually, predominantly based on asset size thresholds. The FR Y–7Q is used to assess consolidated regulatory capital and asset information from all foreign banking organizations. The FR Y–7Q is filed quarterly by foreign banking organizations that have effectively elected to become or be treated as a U.S. financial holding company and by foreign banking organizations that have total consolidated assets of $50 billion or more, regardless of financial holding company status. All other foreign banking organizations file the FR Y–7Q annually. Legal authorization and confidentiality: With respect to foreign banking organizations and their subsidiary intermediate holding companies, section 5(c) of the BHC Act, in conjunction with section 8 of the International Banking Act (12 U.S.C. 3106), authorizes the board to require foreign banking organizations and any subsidiary thereof to file the FR Y–7N reports, and the FR Y–7Q. Information collected in these reports generally is not considered confidential. However, because the information is collected as part of the Board’s supervisory process, certain information may be afforded confidential treatment pursuant to exemption 8 of the FOIA (5 U.S.C. 552(b)(8)). Individual respondents may request that certain data be afforded confidential treatment pursuant to exemption 4 of the FOIA if the data has not previously been publicly disclosed and the release of the data would likely cause substantial harm to the competitive position of the respondent (5 U.S.C. 552(b)(4)). Additionally, individual respondents may request that personally identifiable information be afforded confidential treatment pursuant to exemption 6 of the FOIA if the release of the information would constitute a clearly unwarranted invasion of personal privacy (5 U.S.C. 552(b)(6)). The applicability of the FOIA exemptions 4 and 6 would be determined on a case-by-case basis. 4. Report Title: Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations and the Abbreviated Financial Statements of Foreign Subsidiaries of U.S. Banking Organizations Agency form number: FR 2314 and FR 2314S. OMB control number: 7100–0073. Effective date: December 2, 2020. Frequency: Quarterly and annually. Respondents: U.S. state member banks, bank holding companies, savings VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 and loan holding companies, intermediate holding companies, and Edge or agreement corporations. Estimated number of respondents: FR 2314 (quarterly): 439; FR 2314 (annually): 239; FR 2314S: 300. Estimated annual burden hours: FR 2314 (quarterly): 12,643 hours; FR 2314 (annually): 1,768 hours; FR 2314S: 300 hours. General description of report: The FR 2314 family of reports is the only source of comprehensive and systematic data on the assets, liabilities, and earnings of the foreign nonbank subsidiaries of U.S. banking organizations, and the data are used to monitor the growth, profitability, and activities of these foreign companies. The data help the Board identify present and potential problems of these companies, monitor their activities in specific countries, and develop a better understanding of activities within the industry and within specific institutions. Parent organizations (state member banks, Edge and agreement corporations, or holding companies) file the FR 2314 on a quarterly or annual basis, or the FR 2314S on an annual basis, predominantly based on whether the organization meets certain asset size thresholds. Legal authorization and confidentiality: The Board has the authority to require bank holding companies and any subsidiary thereof, savings and loan holding companies and any subsidiary thereof, and securities holding companies and any affiliate thereof to file the FR 2314 pursuant to, respectively, section 5(c) of the BHC Act (12 U.S.C. 1844(c)), section 10(b) of the Homeowners’ Loan Act (12 U.S.C. 1467a(b)), and section 618 of the Dodd-Frank Act (12 U.S.C. 1850a). The Board has the authority to require state member banks, agreement corporations, and Edge corporations to file the FR 2314 pursuant to, respectively, sections 9(6), 25(7), and 25A(17) of the Federal Reserve Act (12 U.S.C. 324, 602, and 625). With respect to foreign banking organizations and their subsidiary intermediate holding companies, section 5(c) of the BHC Act, in conjunction with section 8 of the International Banking Act (12 U.S.C. 3106), authorizes the board to require foreign banking organizations and any subsidiary thereof to file the FR 2314 reports. These reports are mandatory. Information collected in these reports generally is not considered confidential. However, because the information is collected as part of the Board’s supervisory process, certain information may be afforded confidential treatment pursuant to exemption 8 of the FOIA (5 PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 U.S.C. 552(b)(8)). Individual respondents may request that certain data be afforded confidential treatment pursuant to exemption 4 of the FOIA if the data has not previously been publically disclosed and the release of the data would likely cause substantial harm to the competitive position of the respondent (5 U.S.C. 552(b)(4)). Additionally, individual respondents may request that personally identifiable information be afforded confidential treatment pursuant to exemption 6 of the FOIA if the release of the information would constitute a clearly unwarranted invasion of personal privacy (5 U.S.C. 552(b)(6)). The applicability of the FOIA exemptions 4 and 6 would be determined on a caseby-case basis. Current actions: The interim final rule adjusts for community banking organizations the measurement dates for certain total asset thresholds that would otherwise trigger additional information collection requirements for the remainder of calendar years 2020 through the end of 2021. The temporary relief applies only to filing requirements associated with asset-based reporting thresholds of $10 billion or less. Table 1 of the interim final rule contains a summary of affected reports, reporting applicability for 2020–2021, and the dates for determining reporting requirements for 2022. To implement the interim final rule, the Board is temporarily revising the instructions for the following reports: FR Y–9C, FR Y–9LP, FR Y–11, FR Y– 11S, FR Y–7N, FR Y–7NS, FR 2314, and FR 2314S. The revised instructions instruct community banking organizations to use the lesser of total assets as of December 31, 2019, or the most recent applicable measurement period to determine the applicability of asset-based filing thresholds for the remainder of calendar years 2020 through the end of 2021. All reporting eligibility criteria for these information collections, besides the temporarily revised total assets measurement date, continue to apply. Financial institutions must revert back to normal rules for determining applicability of the reporting requirements in calendar year 2022, as summarized in Table 1. The Board believes the changes to the measurement dates for the total asset thresholds used to determine additional reporting requirements will not result in a change in the burden estimates currently approved by OMB. Therefore, the burden estimates for these reports remain unchanged by the interim final rule. The FR Y–9C instructions currently contain filing thresholds of $5 billion E:\FR\FM\02DER1.SGM 02DER1 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations and $10 billion that trigger the reporting of additional schedules and the reporting of certain data items at a higher frequently. These thresholds would be impacted by the changes in the interim final rule. Whether additional FR Y–9C requirements apply would normally be based on total consolidated assets as of June 30 of the prior year. With the revisions in the interim final rule, community banking organizations may instead use the lesser of total consolidated assets as of December 31, 2019, or June 30, 2020, to determine whether additional filing requirements are applicable. Specifically, the additional filing requirements for the FR Y–9C that would otherwise be triggered by the $5 billion and $10 billion threshold are as follows: • The $5 billion threshold requires these holding companies to report Schedule HI–C, Part I, Disaggregated Data on the Allowance for Loan and Lease Losses; Schedule HC–D, Trading Assets and Liabilities; Schedule HC–P, 1–4 Family Residential Mortgage Banking Activities in Domestic Offices; Schedule HC–Q, Assets and Liabilities Measured at Fair Value; Schedule HC– S, Servicing, Securitization, and Asset Sale Activities; and Schedule HC–V, Variable Interest Entities. • The $5 billion threshold requires these holding companies to report Schedule HI item 1.e, interest income from trading assets; Schedule HI item 2.c, interest on trading liabilities and other borrowed money; Schedule HI item 2.d, interest on subordinated notes and debentures and on mandatory convertible securities; Schedule HI item 5.c, trading revenue; Schedule HI items 5.d.(1) through 5.d.(5), related to various fees and commissions on securities brokerage investments, investment banking, and insurance; Schedule HI item 5.e, venture capital revenue; Schedule HI item 5.g, net securitization income; Schedule HI Memoranda item 1, net interest income on a fully taxable equivalent basis; Schedule HI Memoranda item 2, net income before applicable income taxes, and discontinued operations; Schedule HI Memoranda items 8.a.(1) through 8.b.(2), discontinued operations and applicable income tax effect; Schedule HI Memoranda items 9.a through 9.e, related to trading revenue; Schedule HI Memoranda item 11, credit losses on derivatives; Schedule HI Memoranda items 12.a through 12.c, detail pertaining to income from the sale and servicing of mutual funds and annuities (in domestic offices); Schedule HI Memoranda items 14.a. through 14.b.(1), related to net gains (losses) recognized VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 in earnings on assets and liabilities that are reported at fair value under a fair value option; Schedule HI Memoranda item 15, stock-based employee compensation expense; Schedule HI–B, Part I, items 4.a and 4.b, columns A and B, commercial and industrial loans; Schedule HI–B, Part I, item 6, columns A and B, loans to foreign governments and official institutions; Schedule HI–B, Part I, items 8.a and 8.b, lease finance receivables; Schedule HI–B, Part I, Memoranda item 2, columns A and B, loans secured by real estate to non-U.S. addressees; Schedule HI–B, Part I, Memoranda item 3, uncollectible retail credit card fees and finance charges reversed against income; Schedule HI– B, Part II, Memoranda item 1, allocated transfer risk reserve; Schedule HI–B, Part II, Memoranda item 2, separate valuation allowance for uncollectible retail credit card fees and finance charges; Schedule HI–B, Part II, Memoranda item 3, allowance for loan and lease losses attributable to retail credit card fees and finance charges; Schedule HI–B, Part II, Memoranda item 4, allowance for post-acquisition credit losses on purchased credit-impaired loans; Schedule HC–B, items 4.a.(1) through 4.a.(3), residential pass-through securities; Schedule HC–C, items 4.a and 4.b, commercial and industrial loans; Schedule HC–C, items 9.b.(1) through 9.b.(2), column A and B, loans for purchasing or carrying securities and all other loans; Schedule HC–C, items 10.a and 10.b, column A, lease financing receivables; Schedule HC–C Memoranda items 1.e.(1) and 1.e.(2), commercial and industrial loans; Schedule HC–C Memoranda item 3, loans secured by real estate to non-U.S. addressees; Schedule HC–C Memoranda item 4, outstanding credit card fees and finance charges; Schedule HC–C Memoranda items 12.a through 12.d, loans and leases held for investment (not subject to the requirements of FASB ASC 310– 30) that are acquired in business combinations with acquisition dates in the current calendar year; Schedule HC– K, item 4.a, trading assets; Schedule HC–L item 1.b.(1), unused consumer credit card lines; Schedule HC–L 1.b.(2), other unused credit card lines; Schedule HC–L item 1.d, securities underwriting; Schedule HC–L items 2.a and 3.a, financial and performance standby letters of credit conveyed to others; Schedule HC–L items 7.a through 7.d.(2)(b), related to credit derivatives; Schedule HC–L items 11.a through 14.b.(2), pertaining to derivatives positions; Schedule HC–M items 6.a.(1)(a)(1) through 6.d, pertaining to assets covered by loss-sharing PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 77357 agreements with the Federal Deposit Insurance Corporation; Schedule HC–N, items 8.a and 8.b, columns A, B, and C; Schedule HC–N items 12.a.(1)(a) through 12.f, pertaining to loans and leases which are covered by loss-sharing agreements with the Federal Deposit Insurance Corporation; Schedule HC–N Memoranda items 1.e.(1) and 1.e.(2), columns A, B, and C, commercial and industrial loans; and Schedule HC–N Memoranda item 6, fair value of derivative contract amounts carried as assets. • The $5 billion threshold requires these holding companies to report quarterly rather than annual Schedule HI Memoranda items 6.a through 6.j, other noninterest income; Schedule HI Memoranda items 7.a through 7.p, other noninterest expense; and Schedule HI Memoranda 16, noncash income from negative amortization on closed-end loans secured by 1–4 family residential properties; and quarterly rather than semi-annual, Schedule HI Memoranda item 17, other-than-temporary impairment losses on held-to-maturity and available-for-sale debt securities recognized in earnings; Schedule HI–C, Part II, items 7 through 11, disaggregated data on the allowance for credit losses; Schedule HC–C Memoranda items 1.a.(1) through 1.f.(3)(c), pertaining to loans restructured in troubled debt restructurings that are in compliance with their modified terms; Schedule HC–N Memoranda items 1.a.(1) through 1.d.(2) and 1.e.(3) through 1.f.(3)(c), related to loans restructured in troubled debt restructurings that are in compliance with their modified terms; Schedule HC–R, Part II, items 1 through 25, columns A through U, risk-weighted assets; Schedule HC–R, Part II Memoranda item 1, current credit exposure across all derivative contracts; Schedule HC–R, Part II Memoranda item 2, columns A, B, and C, notional principal amounts of over-the-counter derivative contracts; and Schedule HC– R, Part II, Memoranda item 3, columns A, B, and C, notional principal amounts of centrally cleared derivatives contracts. • The $10 billion threshold requires these holding companies to report Schedule HI Memoranda items 10.a and 10.b, related to net gains/losses on credit derivatives; Schedule HC–B Memoranda items 5.a through 5.f, related to asset-backed securities; Schedule HC–B Memoranda items 6.a through 6.g, related to structured financial products by underlying collateral or reference assets; Schedule HC–L item 15, pertaining to the additional information on over-the- E:\FR\FM\02DER1.SGM 02DER1 77358 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations counter derivatives; and Schedule HC– S items 6 and 10, and Schedule HC–S Memoranda item 3, related to securitization activity. Holding companies that cross the $10 billion threshold would be ineligible to opt-in into the community bank leverage ratio framework and would be required to file the additional Schedule HC–R, Part I and HC–R, Part II line items. The Board has determined that the temporary revisions to these collections of information must be instituted quickly and that public participation in the approval process would defeat the purpose of the collections. Delaying the revisions would cause public harm if firms were adversely affected due to participating in the PPP or had to bear temporary compliance costs. In addition, the Board proposes to extend the collections of information for three years with the revisions discussed above. D. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) 34 requires an agency to consider whether the rules it proposes will have a significant economic impact on a substantial number of small entities.35 The RFA applies only to rules for which an agency publishes a general notice of proposed rulemaking pursuant to 5 U.S.C. 553(b). As discussed previously, consistent with section 553(b)(B) of the APA, the agencies have determined for good cause that general notice and opportunity for public comment is unnecessary, and therefore the agencies are not issuing a notice of proposed rulemaking. Accordingly, the agencies have concluded that the RFA’s requirements relating to initial and final regulatory flexibility analysis do not apply. Nevertheless, the agencies seek comment on whether, and the extent to which, the interim final rule would affect a significant number of small entities. E. Riegle Community Development and Regulatory Improvement Act of 1994 Pursuant to section 302(a) of the Riegle Community Development and Regulatory Improvement Act of 1994 (RCDRIA) 36 requires that each Federal banking agency, in determining the effective date and administrative compliance requirements for new 34 5 U.S.C. 601 et seq. regulations issued by the Small Business Administration, a small entity includes a depository institution, bank holding company, or savings and loan holding company with total assets of $600 million or less and trust companies with total assets of $41.5 million or less. See 13 CFR 121.201. 36 12 U.S.C. 4802(a). 35 Under VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 regulations that impose additional reporting, disclosure, or other requirements on insured depository institutions, each federal banking agency must consider, consistent with principles of safety and soundness and the public interest, any administrative burdens that 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, section 302(b) of RCDRIA requires new regulations and amendments to regulations that impose additional reporting, disclosures, or other new requirements on insured depository institutions generally to 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.37 The agencies have determined that the final rule would not impose additional reporting, disclosure, or other requirements; therefore, the requirements of the RCDRIA do not apply. F. Unfunded Mandates Reform Act of 1995 As a general matter, the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C. 1531 et seq., requires the preparation of a budgetary impact statement before promulgating a rule that includes a Federal mandate that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year. However, the UMRA does not apply to final rules for which a general notice of proposed rulemaking was not published. See 2 U.S.C. 1532(a). Therefore, because the OCC has found good cause to dispense with notice and comment for this interim final rule, the OCC has not prepared an economic analysis of the rule under the UMRA. G. Use of Plain Language Section 722 of the Gramm-LeachBliley Act 38 requires the Federal banking agencies to use plain language in all proposed and final rules published after January 1, 2000. In light of this requirement, the agencies have sought to present the interim final rule in a simple and straightforward manner and invite comment on the use of plain language. For example: • Is the material organized to suit your needs? If not, how could the agencies present the interim final rule more clearly? 37 12 U.S.C. 4802. Law 106–102, 113 Stat. 1338, 1471, 12 U.S.C. 4809. 38 Public PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 • Are the requirements in the interim final rule clearly stated? If not, how could the interim final rule be more clearly stated? • Does the interim final rule contain technical language or jargon that is not clear? If so, which language requires clarification? • Would a different format (grouping and order of sections, use of headings, paragraphing) make the interim final rule easier to understand? If so, what changes would achieve that? • Is this section format adequate? If not, which of the sections should be changed and how? • What other changes can the agencies incorporate to make the interim final rule easier to understand? List of Subjects 12 CFR Part 3 Administrative practice and procedure, Capital, Federal savings associations, National banks, Risk. 12 CFR Part 4 Administrative practice and procedure, Freedom of information, Individuals with disabilities, Minority businesses, Organization and functions (Government agencies), Reporting and recordkeeping requirements, Women. 12 CFR Part 52 Banks, Banking, Reporting and recordkeeping requirements. 12 CFR Part 208 Accounting, Agriculture Banks, Banking, Confidential business information, Consumer protection, Crime Currency, Federal Reserve System, Flood insurance, Insurance, Investments, Mortgages, Reporting and recordkeeping requirements, Securities. 12 CFR Part 211 Exports, Federal Reserve System, Foreign banking, Holding companies, Investments. 12 CFR Part 212 Antitrust, Banks, Banking, Holding companies. 12 CFR Part 217 Administrative practice and procedure, Banks, Banking, Federal Reserve System, Holding companies, Investments, National banks, Reporting and recordkeeping requirements, Securities. 12 CFR Part 225 Administrative practice and procedure, Banks, Banking, Capital planning, Holding companies, Reporting and recordkeeping requirements, Securities, Stress testing. E:\FR\FM\02DER1.SGM 02DER1 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 12 CFR Part 235 Accounting, Banks, Banking. 12 CFR Part 238 Administrative practice and procedure, Banks, Banking, Federal Reserve System, Reporting and recordkeeping requirements, Securities. 12 CFR Part 304 Bank deposit insurance, Banks, Banking, Freedom of information, Reporting and recordkeeping requirements. 12 CFR Part 324 Administrative practice and procedure, Banks, Banking, Capital, Capital adequacy, Reporting and recordkeeping requirements, State nonmember banks, Savings associations. 12 CFR Part 337 Banks, Banking, Reporting and recordkeeping requirements, Savings associations. 12 CFR Part 347 Authority delegations (Government agencies), Bank deposit insurance, Banks, Banking, Credit, Foreign banking, Investments, Reporting and recordkeeping requirements, U.S. investments abroad. 12 CFR Part 348 Antitrust, Banks, Banking, Holding companies, Savings associations. DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Chapter I Authority and Issuance For the reasons stated in the joint preamble, the Office of the Comptroller of the Currency amends chapter I of Title 12 of the Code of Federal Regulations as follows: PART 3—CAPITAL ADEQUACY STANDARDS Authority: 12 U.S.C. 93a, 161, 1462, 1462a, 1463, 1464, 1818, 1828(n), 1828 note, 1831n note, 1835, 3907, 3909, 5412(b)(2)(B), and Pub. L. 116–136, 134 Stat. 281. 2. Section 3.12 is amended by adding paragraph (a)(4) to read as follows: ■ (a) * * * (4)(i) Temporary relief. From December 2, 2020 through December 31, 2021, except as provided in paragraph Jkt 253001 PART 4—ORGANIZATION AND FUNCTIONS, AVAILABILITY AND RELEASE OF INFORMATION, CONTRACTING OUTREACH PROGRAM, POST-EMPLOYMENT RESTRICTIONS FOR SENIOR EXAMINERS SUBPART A—Organization and Functions § 3.12 Community bank leverage ratio framework. 16:10 Dec 01, 2020 1464 1817(a), 1818, 1820, 1821, 1831m, 1831p–1, 1831o, 1833e, 1867, 1951 et seq., 2601 et seq., 2801 et seq., 2901 et seq., 3101 et seq., 3401 et seq., 5321, 5412, 5414; 15 U.S.C. 77uu(b), 78q(c)(3); 18 U.S.C. 641, 1905, 1906; 29 U.S.C. 1204; 31 U.S.C. 5318(g)(2), 9701; 42 U.S.C. 3601; 44 U.S.C. 3506, 3510; E.O. 12600 (3 CFR, 1987 Comp., p. 235). 4. Section 4.6 is amended by adding paragraph (d) to read as follows: ■ § 4.6 Frequency of examination of national banks and Federal savings associations. * * * * * (d) Through December 31, 2021, for purposes of determining eligibility for the 18-month rule described in paragraph (b) of this section, the OCC may determine the total assets of a national bank or Federal savings association by reference to the total assets of the national bank or Federal savings association as reported by the national bank or Federal savings association in its Call Report as of December 31, 2019. 5. Section 4.7 is amended by adding paragraph (d) to read as follows: ■ § 4.7 Frequency of examination of Federal agencies and branches. * * * * * (d) Through December 31, 2021, for purposes of determining eligibility for the 18-month rule described in paragraph (b) of this section, the OCC may determine total assets of a Federal branch or agency by reference to the total assets of the Federal branch or agency as reported by the Federal branch or agency as of December 31, 2019. PART 52—REGULATORY REPORTING 6. The authority citation for part 52 continues to read as follows: ■ Authority: 12 U.S.C. 93a, 161, 1463(a), 1464(v), and 1817(a)(12). ■ 7. Add § 52.5 to read as follows: § 52.5 1. The authority citation for part 3 continues to read as follows: ■ VerDate Sep<11>2014 (a)(4)(ii) of this section, the total consolidated assets of a national bank or Federal savings association for purposes of paragraph (a)(2)(ii) of this section shall be the lesser of: (A) The total consolidated assets reported by the national bank or Federal savings association in its Call Report as of December 31, 2019; and (B) The total consolidated assets of the national bank or Federal savings association calculated in accordance with the reporting instructions to the Call Report as of the end of the most recent calendar quarter. (ii) Reservation of authority. The temporary relief provided under paragraph (a)(4)(i) of this section does not apply to a national bank or Federal savings association if the OCC determines that permitting the institution to determine its assets in accordance with that paragraph would not be commensurate with the risk posed by the institution. When making this determination, the OCC will consider all relevant factors, including the extent of asset growth of the national bank or Federal savings association since December 31, 2019; the causes of this growth, including whether this growth occurred as a result of a merger or acquisition; whether such growth is likely to be temporary or permanent; whether the national bank or Federal savings association has become involved in any additional activities since December 31, 2019; and the type of assets held by the national bank or Federal savings association. The OCC will notify a national bank or Federal savings association of a determination under this paragraph. A national bank or Federal savings association may, not later than 30 days after the date of a determination by the OCC, inform the OCC, in writing, of why the national bank or Federal savings association should be eligible for the temporary relief. The OCC will make a final determination after reviewing any response. * * * * * 3. The authority citation for part 4 continues to read as follows: Authority: 5 U.S.C. 301, 552; 12 U.S.C. 1, 93a, 161, 481, 482, 484(a), 1442, 1462a, 1463, ■ PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 77359 Temporary relief. In determining whether it meets the asset threshold in paragraph (1) of the definition of ‘‘covered depository institution’’ in § 52.5 of this part, for purposes of a report required to be submitted for calendar year 2021, a national bank, Federal savings association, or insured Federal branch may refer to the lesser of its total consolidated assets as reported in its report of condition as of December 31, 2019, and its total consolidated assets as reported in its report of condition for the second calendar quarter of 2020. E:\FR\FM\02DER1.SGM 02DER1 77360 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations Board of Governors of the Federal Reserve System 12 CFR Chapter I Authority and Issuance For the reasons stated in the joint preamble, chapter II of title 12 of the Code of Federal Regulations is amended as follows: PART 208—MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM (REGULATION H) 8. The authority citation for part 208 continues to read as follows: ■ Subpart C—Bank Securities and Securities-Related Activities 9. Amend § 208.36 by adding paragraph (b)(3) to read as follows: ■ § 208.37 Reporting requirements for State member banks subject to the Securities Exchange Act of 1934. * * * * (b) * * * (3) Notwithstanding paragraph (b)(1) of this section, a member bank may, from December 2, 2020, through December 31, 2021, make the election described in paragraph (b)(1) of this section if it has no foreign offices and had total assets of $150 million or less, determined based on the lesser of total assets as of December 31, 2019, and total assets as of the end of the bank’s most recent fiscal year. The relief provided under this paragraph (b)(3) of this section does not apply to a member bank if the Board determines that permitting the member bank to determine its assets in accordance with that paragraph would not be commensurate with the risk profile of the member bank. When making this determination, the Board will consider all relevant factors, including the extent of asset growth of the member bank since December 31, 2019; the causes of such growth, including whether growth occurred as a result of mergers or acquisitions; whether such growth is likely to be temporary or permanent; whether the member bank has become involved in any additional activities since December 31, 2019; the asset size VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 Subpart D—Miscellaneous Requirements 10. Amend § 208.64 by adding paragraph (d) to read as follows: ■ § 208.64 Authority: 12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321–338a, 371d, 461, 481–486, 601, 611, 1814, 1816, 1817(a)(3), 1817(a)(12), 1818, 1820(d)(9), 1833(j), 1828(o), 1831, 1831o, 1831p-1, 1831r-1, 1831w, 1831x, 1835a, 1882, 2901–2907, 3105, 3310, 3331– 3351, 3905–3909, 5371, and 5371 note; 15 U.S.C. 78b, 78I(b), 78l(i), 780–4(c)(5), 78q, 78q-1, 78w, 1681s, 1681w, 6801, and 6805; 31 U.S.C. 5318; 42 U.S.C. 4012a, 4104a, 4104b, 4106, and 4128. * of any parent companies; and the type of assets held by the member bank. In making a determination pursuant to this paragraph (b)(3), the Board will apply notice and response procedures in the same manner and to the same extent as the notice and response procedures in 12 CFR 263.202. * * * * * Frequency of examination. * * * * * (d)(1) Except as provided in paragraph (c) of this section, from December 2, 2020, through December 31, 2021, for purposes of determining eligibility for the extended examination cycle described in paragraph (b) of this section, the total assets of a member bank shall be determined based on the lesser of: (i) The assets of the member bank as of December 31, 2019; and (ii) The assets of the member bank as of the end of the most recent calendar quarter. (2) Nothing in paragraph (d)(1) of this section limits the authority of the Federal Reserve to examine any member bank as frequently as the agency deems necessary pursuant to paragraph (c) of this section. * * * * * Subpart K—Forms, Instructions and Reports 11. Amend § 208.121 by revising the definition of ‘‘Covered depository institution’’ to read as follows: ■ § 208.121 Definitions. * * * * * Covered depository institution means a state member bank that meets all of the following criteria: (1) Has less than $5 billion in total consolidated assets as reported in its report of condition for the second calendar quarter of the preceding year, except that, during the calendar year 2021, a state member bank shall determine whether it meets the requirement in paragraph (1) of this section by using the lesser of its total consolidated assets as reported in its report of condition as of December 31, 2019, and its total consolidated assets as reported in its report of condition for the second calendar quarter of 2020. The relief provided under this paragraph (1) of this section does not apply to a state member bank if the PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 Board determines that permitting the state member bank to determine its assets in accordance with that paragraph would not be commensurate with the risk profile of the state member bank. When making this determination, the Board will consider all relevant factors, including the extent of asset growth of the state member bank since December 31, 2019; the causes of such growth, including whether growth occurred as a result of mergers or acquisitions; whether such growth is likely to be temporary or permanent; whether the state member bank has become involved in any additional activities since December 31, 2019; the asset size of any parent companies; and the type of assets held by the state member bank. In making a determination pursuant to this paragraph (1), the Board will apply notice and response procedures in the same manner and to the same extent as the notice and response procedures in 12 CFR 263.202. (2) Has no foreign offices, as defined in this section; (3) Is not required to or has not elected to use 12 CFR part 217, subpart E, to calculate its risk-based capital requirements; and (4) Is not a large institution or highly complex institution, as such terms are defined in 12 CFR 327.8, or treated as a large institution, as requested under 12 CFR 327.16(f). * * * * * PART 211—INTERNATIONAL BANKING OPERATIONS (REGULATION K) 12. The authority citation for part 211 continues to read as follows: ■ Authority: 12 U.S.C. 221 et seq., 1818, 1835a, 1841 et seq., 3101 et seq., 3901 et seq., and 5101 et seq.; 15 U.S.C. 1681s, 1681w, 6801 and 6805. Subpart B—Foreign Banking Organizations 13. Amend § 211.26 by adding paragraph (c)(2)(iii) to read as follows: ■ § 211.26 Examination of offices and affiliates of foreign banks. * * * * * (c) * * * (2) * * * (iii)(A) Except as provided in paragraph (c)(2)(iii)(B) of this section, from December 2, 2020 through December 31, 2021, for purposes of determining eligibility for the extended examination cycle described in paragraph (c)(2) of this section, the total assets of a branch or agency shall be determined based on the lesser of: E:\FR\FM\02DER1.SGM 02DER1 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations (1) The total assets of the branch or agency as of December 31, 2019; and (2) The total assets of the branch or agency as of the end of the most recent calendar quarter. (B) The relief provided under paragraph (c)(2)(iii)(A) of this section does not apply to a branch or agency if the Board determines that permitting the branch or agency to determine its assets in accordance with that paragraph would not be commensurate with the risk profile of the branch or agency. When making this determination, the Board will consider all relevant factors, including the extent of asset growth of the branch or agency since December 31, 2019; the causes of such growth, including whether growth occurred as a result of mergers or acquisitions; whether such growth is likely to be temporary or permanent; whether the branch or agency has become involved in any additional activities since December 31, 2019; the asset size of any parent companies; and the type of assets held by the branch or agency. In making a determination pursuant to this paragraph (c)(2)(iii)(B), the Board will apply notice and response procedures in the same manner and to the same extent as the notice and response procedures in 12 CFR 263.202. * * * * * PART 212—MANAGEMENT OFFICIAL INTERLOCKS 14. The authority citation for part 212 continues to read as follows: ■ Authority: 12 U.S.C. 3201–3208; 15 U.S.C. 19. 15. Amend § 212.2 by adding paragraph (o)(3) to read as follows: ■ § 212.2 Definitions. * * * * * (o) * * * (3)(i) Notwithstanding paragraph (o)(1) of this section, and except as provided in paragraph (o)(3)(ii) of this section, from December 2, 2020, through December 31, 2021, the term total assets, with respect to a depository organization, means the lesser of assets of the depository organization reported on a consolidated basis as of December 31, 2019, and assets reported as of the end of the depository organization’s most recent fiscal year on a consolidated basis as of December 31, 2020. (ii) The relief provided under paragraph (o)(3)(i) of this section does not apply to a depository organization if the Board determines that permitting the depository organization to determine its assets in accordance with that paragraph would not be VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 commensurate with the risk profile of the depository organization. When making this determination, the Board will consider all relevant factors, including the extent of asset growth of the depository organization since December 31, 2019; the causes of such growth, including whether growth occurred as a result of mergers or acquisitions; whether such growth is likely to be temporary or permanent; whether the depository organization has become involved in any additional activities since December 31, 2019; the asset size of any parent companies; and the type of assets held by the depository organization. In making a determination pursuant to this paragraph (o)(3)(ii), the Board will apply notice and response procedures in the same manner and to the same extent as the notice and response procedures in 12 CFR 263.202. * * * * * PART 217—CAPITAL ADEQUACY OF BANK HOLDING COMPANIES, SAVINGS AND LOAN HOLDING COMPANIES, AND STATE MEMBER BANKS (REGULATION Q) 16. The authority citation for part 217 continues to read as follows: ■ Authority: 12 U.S.C. 248(a), 321–338a, 481–486, 1462a, 1467a, 1818, 1828, 1831n, 1831o, 1831p–1, 1831w, 1835, 1844(b), 1851, 3904, 3906–3909, 4808, 5365, 5368, 5371, 5371 note, and sec. 4012, Pub. L. 116–136, 134 Stat. 281. Subpart B—Capital Ratio Requirements and Buffers 77361 of the end of the most recent calendar quarter. (ii) The relief provided under this paragraph (a)(4)(i) does not apply to a Board-regulated institution if the Board determines that permitting the Boardregulated institution to determine its assets in accordance with that paragraph would not be commensurate with the risk profile of the Board-regulated institution. When making this determination, the Board will consider all relevant factors, including the extent of asset growth of the Board-regulated institution since December 31, 2019; the causes of such growth, including whether growth occurred as a result of mergers or acquisitions; whether such growth is likely to be temporary or permanent; whether the Board-regulated institution has become involved in any additional activities since December 31, 2019; the asset size of any parent companies; and the type of assets held by the Board-regulated institution. In making a determination pursuant to this paragraph (a)(4)(ii), the Board will apply notice and response procedures in the same manner and to the same extent as the notice and response procedures in 12 CFR 263.202. * * * * * PART 225—BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL (REGULATION Y) 18. The authority citation for part 225 continues to read as follows: ■ ■ Authority: 12 U.S.C. 1817(j)(13), 1818, 1828(o), 1831i, 1831p–1, 1843(c)(8), 1844(b), 1972(1), 3106, 3108, 3310, 3331–3351, 3906, 3907, and 3909; 15 U.S.C. 1681s, 1681w, 6801 and 6805. § 217.12 Community bank leverage ratio framework. Subpart A—General Provisions 17. Amend § 217.12 by adding paragraph (a)(4) to read as follows: (a) * * * (4) Temporary relief for 2020 and 2021. (i) Except as provided in paragraph (a)(4)(ii) of this section, from December 2, 2020, through December 31, 2021, for purposes of determining whether a Board-regulated institution satisfies the criterion in paragraph (a)(2)(ii) of this section, the total consolidated assets of a Board-regulated institution for purposes of paragraph (a)(2)(ii) of this section shall be determined based on the lesser of: (A) The total consolidated assets reported by the institution in the Call Report, FR Y–9C, or FR Y–9SP, as applicable, as of December 31, 2019; and (B) The total consolidated assets calculated in accordance with the reporting instructions to the Call Report or to Form FR Y–9C, as applicable, as PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 19. Add § 225.10 to subpart A to read as follows: ■ § 225.10 2021. Temporary relief for 2020 and (a) Except as provided in paragraph (c) of this section and subject to the provisions of paragraph (d) of this section, from December 2, 2020, through December 31, 2021, the consolidated assets, consolidated risk-weighted assets, total consolidated assets, and total assets of a bank holding company for purposes of §§ 225.4(b)(2)(iii)(A) and (B), 225.14(a)(1)(v)(A)(1) and (2), 225.14(a)(1)(vi), 225.23(a)(1)(iii)(A)(1) and (2), 225.24(a)(2)(iv) and (v), and 225.28(b)(11)(vi) shall be determined based on the lesser of each such amount as of December 31, 2019, and as of the otherwise applicable asset measurement date of the relevant paragraph. E:\FR\FM\02DER1.SGM 02DER1 77362 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations (b) Except as provided in paragraph (c) of this section and subject to the provisions of paragraph (d) of this section, from December 2, 2020, through December 31, 2021, for purposes of determining the applicability of §§ 224.14(c)(6)(ii), 225.17(a)(6), and 225.23(c)(5)(ii) of this part and appendix C to this part, the pro forma consolidated assets of a bank holding company and the consolidated riskweighted assets of a bank holding company immediately following consummation of a transaction each shall be calculated as the lesser of: (1) Such amount calculated as the sum of the assets of each company involved in the proposed business combination, as well as any company with which any such company has combined since December 31, 2019, as of December 31, 2019; and (2) Such amount calculated as the sum of the assets of each company involved in the proposed business combination as of the end of the most recent calendar quarter. (c) The relief provided under paragraphs (a) and (b) of this section does not apply to a bank holding company if the Board determines that permitting the bank holding company to determine its assets in accordance with that paragraph would not be commensurate with the risk profile of the bank holding company. When making this determination, the Board will consider all relevant factors, including the extent of asset growth of the bank holding company since December 31, 2019; the causes of such growth, including whether growth occurred as a result of mergers or acquisitions; whether such growth is likely to be temporary or permanent; whether the bank holding company has become involved in any additional activities since December 31, 2019; the asset size of any parent companies; and the type of assets held by the bank holding company. In making a determination pursuant to this section, the Board will apply notice and response procedures in the same manner and to the same extent as the notice and response procedures in 12 CFR 263.202. (d) Nothing in this section limits the discretion of the Board or its delegatee to disallow the use of any expedited action process, require the submission of additional information in connection with a notice or application, or consider the ability of a bank holding company filing a notice or application under this part to comply with any statutory or regulatory requirements that may be applicable to the bank holding company VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 upon expiration of the relief provided by this section. 5365; 1813, 1817, 1829e, 1831i, 1972, 15 U.S.C. 78l. PART 235—DEBIT CARD INTERCHANGE FEES AND ROUTING (REGULATION II) Subpart A—General Provisions 20. The authority citation for part 235 continues to read as follows: ■ Authority: 15 U.S.C. 1693o–2. 21. The heading for part 235 is revised to read as set forth above. ■ 22. Amend § 235.5 by adding paragraph (a)(4) to read as follows: ■ § 235.5 Exemptions. * * * * * (a) * * * (4)(i) Temporary relief for 2020 and 2021. Except as provided in paragraph (a)(4)(ii) of this section, for purposes of determining eligibility for the exemption for small issuers described in paragraph (a)(1) of this section, issuer asset size that is calculated as of the end of the calendar year 2020 shall be determined based on the lesser of: (A) The assets of the issuer, together with its affiliates, as of the end of the calendar year 2019; and (B) The assets of the issuer, together with its affiliates, as of the end of the calendar year 2020. (ii) The relief provided under this paragraph (a)(4) does not apply to an issuer if the Board determines that permitting the issuer to determine its assets in accordance with that paragraph would not be commensurate with the asset profile of the issuer. When making this determination, the Board will consider all relevant factors, including the extent of asset growth of the issuer since December 31, 2019; the causes of such growth, including whether growth occurred as a result of mergers or acquisitions; whether such growth is likely to be temporary or permanent; whether the issuer has become involved in any additional activities since December 31, 2019; the asset size of any parent companies; and the type of assets held by the issuer. In making a determination pursuant to this paragraph (a)(4)(ii), the Board will apply notice and response procedures in the same manner and to the same extent as the notice and response procedures in 12 CFR 263.202. * * * * * PART 238—SAVINGS AND LOAN HOLDING COMPANIES (REGULATION LL) 23. The authority citation for part 238 continues to read as follows: ■ Authority: 5 U.S.C. 552, 559; 12 U.S.C. 1462, 1462a, 1463, 1464, 1467, 1467a, 1468, PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 24. Amend § 238.5 by revising paragraph (b) to read as follows: ■ § 238.5 Audit of savings association holding companies. * * * * * (b) Audits required for safety and soundness purposes. (1) The Board requires an independent audit for safety and soundness purposes if, as of the beginning of its fiscal year, a savings and loan holding company controls savings association subsidiary(ies) with aggregate consolidated assets of $500 million or more. (2) Except as provided in paragraph (b)(3) of this section, with regard to a savings and loan holding company’s fiscal year beginning in the calendar years 2020 or 2021, the applicability of the requirement in paragraph (b)(1) of this section shall be determined based on the lesser of: (i) The aggregate consolidated assets of the savings and loan holding company as of December 31, 2019; and (ii) The aggregate consolidated assets of the savings and loan holding company as of the end of its fiscal year ending in calendar year 2020. (3) The relief provided under paragraph (b)(2) of this section does not apply to a savings and loan holding company if the Board determines that permitting the savings and loan holding company to determine its assets in accordance with that paragraph would not be commensurate with the risk profile of the savings and loan holding company. When making this determination, the Board will consider all relevant factors, including the extent of asset growth of the savings and loan holding company since December 31, 2019; the causes of such growth, including whether growth occurred as a result of mergers or acquisitions; whether such growth is likely to be temporary or permanent; whether the savings and loan holding company has become involved in any additional activities since December 31, 2019; the asset size of any parent companies; and the type of assets held by the savings and loan holding company. In making a determination pursuant to this paragraph (b)(3), the Board will apply notice and response procedures in the same manner and to the same extent as the notice and response procedures in 12 CFR 263.202. * * * * * E:\FR\FM\02DER1.SGM 02DER1 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations Subpart F—Savings and Loan Holding Company Activities and Acquisitions 25. Amend § 238.53 by adding paragraph (c)(3) to read as follows: ■ § 238.53 Prescribed services and activities of savings and loan holding companies. * * * * * (c) * * * (3)(i) Except as provided in paragraph (c)(3)(ii) of this section, from December 2, 2020, until December 31, 2021, the determination of whether a savings and loan holding company must comply with the filing requirements in paragraph (c)(2)(iii) or (iv) of this section shall be made based on the lesser of: (A) The consolidated assets of the savings and loan holding company as of December 31, 2019; and (B) The consolidated assets of the savings and loan holding company as of the end of the most recent calendar quarter. (ii) The relief provided under paragraph (c)(3)(i) of this section does not apply to a savings and loan holding company if the Board determines that permitting the savings and loan holding company to determine its assets in accordance with that paragraph would not be commensurate with the risk profile of the savings and loan holding company. When making this determination, the Board will consider all relevant factors, including the extent of asset growth of the savings and loan holding company since December 31, 2019; the causes of such growth, including whether growth occurred as a result of mergers or acquisitions; whether such growth is likely to be temporary or permanent; whether the savings and loan holding company has become involved in any additional activities since December 31, 2019; the asset size of any parent companies; and the type of assets held by the savings and loan holding company. In making a determination pursuant to this paragraph (c)(3)(ii), the Board will apply notice and response procedures in the same manner and to the same extent as the notice and response procedures in 12 CFR 263.202. * * * * * of this section, from December 2, 2020, through December 31, 2021, for purposes of this subpart J, the term total assets, with respect to a depository organization, means the lesser of assets of the depository organization reported on a consolidated basis as of December 31, 2019, and assets reported on a consolidated basis as of the end of the most recent fiscal year. The relief provided under this paragraph (p)(3) does not apply to a depository organization if the Board determines that permitting the depository organization to determine its assets in accordance with that paragraph would not be commensurate with the risk profile of the depository organization. When making this determination, the Board will consider all relevant factors, including the extent of asset growth of the depository organization since December 31, 2019; the causes of such growth, including whether growth occurred as a result of mergers or acquisitions; whether such growth is likely to be temporary or permanent; whether the depository organization has become involved in any additional activities since December 31, 2019; the asset size of any parent companies; and the type of assets held by the depository organization. In making a determination pursuant to this paragraph (p)(3), the Board will apply notice and response procedures in the same manner and to the same extent as the notice and response procedures in 12 CFR 263.202. * * * * * FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Chapter III Authority and Issuance For the reasons stated in the preamble, the Federal Deposit Insurance Corporation amends chapter III of Title 12, Code of Federal Regulations as follows: PART 304—FORMS, INSTRUCTIONS, AND REPORTS 27. The authority citation for part 304 continues to read as follows: ■ Authority: 12 U.S.C. 1464(v), 1817(a), and 1819 Tenth. 28. Amend § 304.12 by adding paragraph (a)(6) to read as follows: Subpart J—Management Official Interlocks ■ 26. Amend § 238.92 by adding paragraph (p)(3) to read as follows: § 304.12 ■ § 238.92 Definitions. * * * * * (p) * * * (3) Temporary relief for 2020 and 2021. Notwithstanding paragraph (p)(1) VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 Definitions. (a) * * * (6) In determining whether an insured depository institution meets the asset threshold in paragraph (1) of the definition of ‘‘covered depository institution’’ in paragraph (a)(1) of this section, for purposes of a report PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 77363 required to be submitted for calendar year 2021, an insured depository institution may refer to the lesser of its total consolidated assets as reported in its report of condition as of December 31, 2019, and its total consolidated assets as reported in its report of condition for the second calendar quarter of 2020. PART 324—CAPITAL ADEQUACY OF FDIC-SUPERVISED INSTITUTIONS 29. The authority citation for part 324 is revised to read as follows: ■ Authority: 12 U.S.C. 1815(a), 1815(b), 1816, 1818(a), 1818(b), 1818(c), 1818(t), 1819(Tenth), 1828(c), 1828(d), 1828(i), 1828(n), 1828(o), 1831o, 1835, 3907, 3909, 4808; 5371; 5412; Pub. L. 102–233, 105 Stat. 1761, 1789, 1790 (12 U.S.C. 1831n note); Pub. L. 102–242, 105 Stat. 2236, 2355, as amended by Pub. L. 103–325, 108 Stat. 2160, 2233 (12 U.S.C. 1828 note); Pub. L. 102–242, 105 Stat. 2236, 2386, as amended by Pub. L. 102–550, 106 Stat. 3672, 4089 (12 U.S.C. 1828 note); Pub. L. 111–203, 124 Stat. 1376, 1887 (15 U.S.C. 78o–7 note), Pub. L. 115–174; section 4014 § 201, Pub. L. 116–136, 134 Stat. 281 (15 U.S.C. 9052). 30. Amend § 324.12 by adding paragraph (a)(4) to read as follows: ■ § 324.12 Community bank leverage ratio framework. (a) * * * (4)(i) Temporary relief—From December 2, 2020 through December 31, 2021, for purposes of determining whether an FDIC-supervised institution satisfies the criterion in paragraph (a)(2)(ii) of this section, except as provided in paragraph (a)(4)(ii) of this section, the total consolidated assets of an FDIC-supervised institution for purposes of paragraph (a)(2)(ii) of this section shall be determined based on the lesser of: (A) The total consolidated assets reported by the institution in the Call Report as of December 31, 2019; and (B) The total consolidated assets calculated in accordance with the reporting instructions to the Call Report as of the end of the most recent calendar quarter. (ii) Reservation of authority—The temporary relief provided under this paragraph (a)(4)(i) of this section does not apply to an FDIC-supervised institution if the FDIC determines that permitting the FDIC-supervised institution to determine its assets in accordance with that paragraph would not be commensurate with the risk posed by the institution. When making this determination, the FDIC will consider all relevant factors, including the extent of asset growth of the FDICsupervised institution since December E:\FR\FM\02DER1.SGM 02DER1 77364 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 31, 2019; the causes of such growth, including whether growth occurred as a result of mergers or acquisitions; whether such growth is likely to be temporary or permanent; whether the FDIC-supervised institution has become involved in any additional activities since December 31, 2019; and the type of assets held by the FDIC-supervised institution. The FDIC will notify an FDIC-supervised institution of a determination under this paragraph. An FDIC-supervised institution may, not later than 30 days after the date of a determination by the FDIC, inform the FDIC, in writing, of why the FDICsupervised institution should be eligible for the temporary relief. The FDIC will make a final determination after reviewing any response. * * * * * PART 337—UNSAFE AND UNSOUND BANK PRACTICES 31. The authority citation for part 337 continues to read as follows: ■ Authority: 12 U.S.C. 375a(4), 375b, 1463, 1464, 1468, 1816, 1818(a), 1818(b), 1819, 1820(d), 1821(f), 1828(j)(2), 1831, 1831f, 1831g, 5412. 32. Amend § 337.12 by adding paragraph (d) to read as follows: ■ § 337.12 Frequency of examination. * * * * * (d) From December 2, 2020, through December 31, 2021, for purposes of determining eligibility for the extended examination cycle described in paragraph (b) of this section, the total assets of an institution shall be determined based on the lesser of: (1) The assets of the institution as of December 31, 2019; and (2) The assets of the institution as of the end of the most recent calendar quarter. PART 347—INTERNATIONAL BANKING 33. The authority citation for part 347 continues to read as follows: ■ Authority: 12 U.S.C. 1813, 1815, 1817, 1819, 1820, 1828, 3103, 3104, 3105, 3108, 3109; Pub. L. 111–203, section 939A, 124 Stat. 1376, 1887 (July 21, 2010) (codified 15 U.S.C. 78o–7 note). 34. Amend § 347.211 by adding paragraph (d) to read as follows: ■ * * * * (d) From December 2, 2020, through December 31, 2021, for purposes of determining eligibility for the extended examination cycle described in VerDate Sep<11>2014 20:31 Dec 01, 2020 Jkt 253001 PART 348—MANAGEMENT OFFICIAL INTERLOCKS 35. The authority citation for part 348 continues to read as follows: ■ Authority: 12 U.S.C. 1823(k), 3207. 36. Amend § 348.2 by adding paragraph (q)(3) to read as follows: By order of the Board of Directors. Dated at Washington, DC, on or about November 17, 2020. James P. Sheesley, Assistant Executive Secretary. [FR Doc. 2020–26138 Filed 12–1–20; 8:45 am] BILLING CODE 6210–01–P FARM CREDIT ADMINISTRATION 12 CFR Part 614 RIN 3052–AC92 ■ § 348.2 Other definitions and rules of construction. * * * * * (q) * * * (3)(i) Temporary relief for 2020 and 2021. Notwithstanding paragraph (q)(1) of this section, from December 2, 2020, through December 31, 2021, except as provided in paragraph (q)(3)(ii) of this section, the term total assets, with respect to a depository organization, means the lesser of assets of the depository organization reported on a consolidated basis as of December 31, 2019, and assets reported on a consolidated basis as of December 31, 2020. (ii) Reservation of authority. The temporary relief provided under this paragraph (q)(3)(i) of this section does not apply to an FDIC-supervised institution if the FDIC determines that permitting the FDIC-supervised institution to determine its assets in accordance with that paragraph would not be commensurate with the risk posed by the institution. When making this determination, the FDIC will consider all relevant factors, including the extent of asset growth of the FDICsupervised institution since December 31, 2019; the causes of such growth, including whether growth occurred as a result of mergers or acquisitions; whether such growth is likely to be temporary or permanent; whether the FDIC-supervised institution has become involved in any additional activities since December 31, 2019; and the type of assets held by the FDIC-supervised institution. * * * * * Brian P. Brooks, Acting Comptroller of the Currency. § 347.21 Examination of branches of foreign banks. * paragraph (b) of this section, the total assets of an insured branch shall be determined based on the lesser of: (1) The assets of the insured branch as of December 31, 2019; and (2) The assets of the insured branch as of the end of the most recent calendar quarter. By order of the Board of Governors of the Federal Reserve System. Ann Misback, Secretary of the Board. Federal Deposit Insurance Corporation. PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 Amortization Limits; Correction AGENCY: ACTION: Farm Credit Administration. Final rule; correction. On September 28, 2020, the Farm Credit Administration (FCA) published a final rule that repealed the regulatory requirement that production credit associations (PCAs) amortize their loans in 15 years or less, while requiring all Farm Credit System (FCS or System) associations to address amortization through their credit underwriting standards and internal controls. In that publication, FCA inadvertently omitted a statement that the Office of Management and Budget’s Office of Information and Regulatory Affairs determined that the final rule is not a major rule under the applicable provisions of the Congressional Review Act. This document corrects that error. SUMMARY: This correction is effective December 2, 2020. DATES: FOR FURTHER INFORMATION CONTACT: Richard A. Katz, Senior Counsel, Office of General Counsel, (703) 883–4020, TTY (703) 883–4056, Farm Credit Administration, 1501 Farm Credit Drive, McLean, VA 22102–5090. In FR Doc. 2020–18552, entitled ‘‘Amortization Limits,’’ beginning on page 60691 in the Federal Register of Monday, September 28, 2020, make the following corrections; 1. On page 60693, in the second column, the heading for section V is corrected to read ‘‘Regulatory Flexibility Act and Major Rule Conclusion.’’ 2. On page 60693, in the second column, add paragraph at the end of section V to read as follows: SUPPLEMENTARY INFORMATION: Under the provisions of the Congressional Review Act (5 U.S.C. 801 et seq.), the Office of Management and Budget’s Office of Information and Regulatory Affairs has determined that this final rule is not a ‘‘major rule,’’ as the term is defined at 5 U.S.C. 804(2). E:\FR\FM\02DER1.SGM 02DER1

Agencies

[Federal Register Volume 85, Number 232 (Wednesday, December 2, 2020)]
[Rules and Regulations]
[Pages 77345-77364]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26138]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / 
Rules and Regulations

[[Page 77345]]



DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Parts 3, 4, and 52

[Docket ID OCC-2020-0044]
RIN 1557-AF06

FEDERAL RESERVE SYSTEM

12 CFR Parts 208, 211, 212, 217, 225, 235, and 238

[Docket No. R-1731]
RIN 7100-AG01

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Parts 304, 324, 337, 347, and 348

RIN 3064-AF67


Temporary Asset Thresholds

AGENCY: Office of the Comptroller of the Currency, Treasury (OCC); 
Board of Governors of the Federal Reserve System (Board); and Federal 
Deposit Insurance Corporation (FDIC).

ACTION: Interim final rule, request for public comment.

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

SUMMARY: To mitigate temporary transition costs on banking 
organizations related to the coronavirus disease 2019 (COVID event), 
the OCC, Board, and the FDIC (together, the agencies) are issuing an 
interim final rule to permit national banks, savings associations, 
state banks, bank holding companies, savings and loan holding 
companies, and U.S. branches and agencies of foreign banking 
organizations with under $10 billion in total assets as of December 31, 
2019, (community banking organizations) to use asset data as of 
December 31, 2019, in order to determine the applicability of various 
regulatory asset thresholds during calendar years 2020 and 2021. For 
the same reasons, the Board is temporarily revising the instructions to 
a number of its regulatory reports to provide that community banking 
organizations may use asset data as of December 31, 2019, in order to 
determine reporting requirements for reports due in calendar years 2020 
or 2021.

DATES: 
    Effective date: This rule is effective on December 2, 2020.
    Comment date: Comments must be received on or before February 1, 
2021.

ADDRESSES: Comments should be directed to:
    OCC: You may submit comments to the OCC by any of the methods set 
forth below. Commenters are encouraged to submit comments through the 
Federal eRulemaking Portal, if possible. Please use the title 
``Temporary Asset Thresholds'' to facilitate the organization and 
distribution of the comments. You may submit comments by any of the 
following methods:
     Federal eRulemaking Portal--Regulations.gov Classic or 
Regulations.gov Beta.
    Regulations.gov Classic: Go to https://www.regulations.gov/. Enter 
``Docket ID OCC-2020-0044'' in the Search Box and click ``Search.'' 
Click on ``Comment Now'' to submit public comments. For help with 
submitting effective comments, please click on ``View Commenter's 
Checklist.'' Click on the ``Help'' tab on the Regulations.gov home page 
to get information on using Regulations.gov, including instructions for 
submitting public comments.
    Regulations.gov Beta: Go to https://beta.regulations.gov/ or click 
``Visit New Regulations.gov Site'' from the Regulations.gov classic 
homepage. Enter ``Docket ID OCC-2020-0044'' in the Search Box and click 
``Search.'' Public comments can be submitted via the ``Comment'' box 
below the displayed document information or click on the document title 
and click the ``Comment'' box on the top-left side of the screen. For 
help with submitting effective comments, please click on ``Commenter's 
Checklist.'' For assistance with the Regulations.gov Beta site, please 
call (877) 378-5457 (toll free) or (703) 454-9859 Monday-Friday, 9 
a.m.-5 p.m. ET or email to [email protected].
     Mail: Chief Counsel's Office, Attn: Comment Processing, 
Office of the Comptroller of the Currency, 400 7th Street SW, Suite 3E-
218, Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
    Instructions: You must include ``OCC'' as the agency name and 
``Docket ID OCC-2020-0044'' in your comment.
    In general, the OCC will enter all comments received into the 
docket and publish the comments on the Regulations.gov website without 
change, including any business or personal information provided such as 
name and address information, email addresses, or phone numbers. 
Comments received, including attachments and other supporting 
materials, are part of the public record and subject to public 
disclosure. Do not include any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.
    You may review comments and other related materials that pertain to 
this rulemaking action by the following methods:
     Regulations.gov Classic or Regulations.gov Beta:
    Regulations.gov Classic: Go to https://www.regulations.gov/. Enter 
``Docket ID OCC-2020-0044'' in the Search box and click ``Search.'' 
Click on ``Open Docket Folder'' on the right side of the screen. 
Comments and supporting materials can be viewed and filtered by 
clicking on ``View all documents and comments in this docket'' and then 
using the filtering tools on the left side of the screen. Click on the 
``Help'' tab on the Regulations.gov home page to get information on 
using Regulations.gov. The docket may be viewed after the close of the 
comment period in the same manner as during the comment period.
    Regulations.gov Beta: Go to https://beta.regulations.gov/ or click 
``Visit New Regulations.gov Site'' from the Regulations.gov classic 
homepage. Enter ``Docket ID OCC 2020-0044'' in the Search Box and click 
``Search.'' Click on the ``Comments'' tab. Comments can be viewed and 
filtered by clicking on the ``Sort By'' drop-down on the right side of 
the screen or the ``Refine Results'' options on the left side of the 
screen. Supporting Materials can be viewed by clicking on the 
``Documents'' tab and filtered by clicking on the ``Sort By'' drop-down 
on the right side of the

[[Page 77346]]

screen or the ``Refine Results'' options on the left side of the 
screen. For assistance with the Regulations.gov Beta site please call 
(877) 378-5457 (toll free) or (703) 454-9859 Monday-Friday, 9 a.m.-5 
p.m. ET or email [email protected]. The docket may be 
viewed after the close of the comment period in the same manner as 
during the comment period.
    Board: You may submit comments, identified by Docket No. R-1731 and 
RIN No. 7100-AG01, by any of the following methods:
     Agency Web Site: https://www.federalreserve.gov. Follow the 
instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     E-mail: [email protected]. Include docket 
number and RIN in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    All public comments are available from the Board's website at 
https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as 
submitted, unless modified for technical reasons or to remove sensitive 
PII at the commenter's request. Public comments may also be viewed 
electronically or in paper form in Room 146, 1709 New York Avenue NW, 
Washington, DC 20006, between 9:00 a.m. and 5:00 p.m. on weekdays.
    FDIC: You may submit comments on the notice of proposed rulemaking 
using any of the following methods:
     Agency Website: https://www.fdic.gov/regulations/laws/federal. Follow the instructions for submitting comments on the agency 
website.
     Email: [email protected]. Include RIN 3064-AF67 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: Comments may be hand delivered to the guard 
station at the rear of the 550 17th Street NW building (located on F 
Street) on business days between 7 a.m. and 5 p.m.
     Public Inspection: All comments received, including any 
personal information provided, will be posted generally without change 
to https://www.fdic.gov/regulations/laws/federal.

FOR FURTHER INFORMATION CONTACT: 
    OCC: Alison MacDonald, Special Counsel, or Kevin Korzeniewski, 
Counsel, Chief Counsel's Office, (202) 649-5490.
    Board: Juan Climent, Assistant Director, (202) 872-7526, Eric 
Kennedy, Assistant Director, (202) 263-4887, Nancy J. Oakes, Manager, 
(202) 452-3413, Teresa Scott, Manager, (202) 973-6114, Naima Jefferson, 
Lead Financial Institution Policy Analyst, (202) 912-4613, Daniel 
Newman, Senior Data Governance Analyst, (202) 973-7409, Senait Kahsay, 
Senior Financial Institution Policy Analyst II, (202) 245-4209, Joseph 
Willcox, Senior Financial Institution Policy Analyst II, (202) 452-
3663, Division of Supervision and Regulation; Laurie Schaffer, Deputy 
General Counsel (202) 452-2272, Benjamin McDonough, Associate General 
Counsel, (202) 973-7432, Jonah Kind, Counsel (202) 452-2045, Justyna 
Bolter, Senior Attorney (202) 452-2686, Christopher Danello, Attorney, 
(202) 736-1960, Legal Division, Board of Governors of the Federal 
Reserve System, 20th and C Streets NW, Washington, DC 20551. For users 
of Telecommunication Device for the Deaf (TDD), (202) 263-4869.
    FDIC: Rae-Ann Miller, Associate Director, Risk Management Policy, 
(202) 898-3898, Bobby R. Bean, Associate Director, Capital Markets, 
(202) 898-6705; William Piervincenzi, Supervisory Counsel, (202) 898-
6957, Nefretete A. Smith, Counsel, (202) 898-6851, Michael B. Phillips, 
Counsel, (202) 898-3581, Jennifer M. Jones, Counsel, (202) 898-6768, 
[email protected], Supervision and Legislation Branch, Legal Division, 
Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, 
DC 20429. For the hearing impaired only, Telecommunication Device for 
the Deaf (TDD), (800) 925-4618.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background
II. Discussion
    A. Interim Final Rule
    B. Reservation of Authority
    C. Regulatory Reporting Changes
III. Request for Comment
IV. Administrative Law Matters
    A. Administrative Procedure Act
    B. Congressional Review Act
    C. Paperwork Reduction Act
    D. Regulatory Flexibility Act
    E. Riegle Community Development and Regulatory Improvement Act 
of 1994
    F. Unfunded Mandates Reform Act of 1995
    G. Use of Plain Language

I. Background

    In light of strains in economic conditions related to the COVID 
event and stress in U.S. financial markets, the agencies have taken a 
number of actions intended to: (i) Restore market functioning and 
support the flow of credit to households, businesses, and communities 
and (ii) increase flexibility and reduce regulatory reporting burden. 
Among those actions, the agencies have issued a number of rules and 
supervisory guidance communications designed to mitigate the 
consequences of the COVID event and to facilitate the safe and 
effective operations of banking organizations.\1\
---------------------------------------------------------------------------

    \1\ See ``Supervisory and Regulatory Actions in Response to 
COVID-19,'' available at https://www.federalreserve.gov/supervisory-regulatory-action-response-covid-19.htm.; ``COVID-19 
(Coronavirus),'' available at https://occ.gov/topics/supervision-and-examination/bank-operations/covid-19-information/convid-19-info-index.html; ``Coronavirus (COVID-19) Information for Bankers and 
Consumers,'' available at https://www.fdic.gov/coronavirus/. See 
also ``The FDIC Approves Interim Final Rule to Provide Temporary 
Relief from Part 363 Audit and Reporting Requirements,'' available 
at https://www.fdic.gov/news/financial-institution-letters/2020/fil20099.html and Final Rule Mitigating the Deposit Insurance 
Assessment Effect of Participation in the Paycheck Protection 
Program (PPP), the PPP Liquidity Facility, and the Money Market 
Mutual Fund Liquidity Facility at https://www.fdic.gov/news/financial-institution-letters/2020/fil20063.html.
---------------------------------------------------------------------------

    Community banking organizations have played an instrumental role in 
the nation's financial response to the COVID event, and many have 
experienced significant balance sheet growth as a result of the COVID 
event and the policy response to the event. Policies encouraging banks 
to work with their customers, such as the Small Business 
Administration's (SBA's) Paycheck Protection Program (PPP) \2\ and the 
interagency statement encouraging financial institutions to work with 
borrowers affected by the COVID event,\3\ have resulted in much-needed 
emergency liquidity being offered to small businesses, including, but 
not limited to, individuals operating sole proprietorships or acting as 
independent contractors, certain franchisees, nonprofit corporations, 
veterans organizations, Tribal businesses, and households. As a result, 
during the COVID event many community banking organizations have 
experienced an unexpected and sharp increase in assets, swelling their 
balance sheets in some cases by more than 25 percent.\4\ Much of this 
growth,

[[Page 77347]]

particularly that related to participation in PPP, is expected to be 
temporary.
---------------------------------------------------------------------------

    \2\ The SBA's PPP was created under the Coronavirus Aid, Relief, 
and Economic Security Act (CARES Act) in response to market distress 
caused by the COVID-19 event. Public Law 116-136, 134 Stat. 281.
    \3\ ``Revised Interagency Statement on Loan Modifications by 
Financial Institutions Working with Customers Affected by the 
Coronavirus'' (Apr. 7, 2020), available at https://www.occ.gov/news-issuances/news-releases/2020/nr-ia-2020-50a.pdf.
    \4\ Data derived from the Consolidated Reports of Condition and 
Income (Call Report) and Financial Statements for Holding Companies 
(FR Y-9C) data December 31, 2019 to June 30, 2020.
---------------------------------------------------------------------------

    PPP loans are a special asset class of government-guaranteed assets 
designed to incentivize businesses to keep workers on payroll. To 
encourage lending to small businesses through the SBA's PPP, the Board 
established the PPP Liquidity Facility on April 9, 2019.\5\ Under the 
PPP Liquidity Facility, each of the Federal Reserve Banks may extend 
non-recourse loans to banking organizations that pledge PPP loans, 
which continue to be assets on the balance sheets of banking 
organizations, as collateral.\6\ The last day for lenders to make a PPP 
loan was August 8, 2020,\7\ and depending on SBA determinations, a 
significant amount of PPP debt forgiveness may occur in the fourth 
calendar quarter of 2020 or early in the first calendar quarter of 
2021. However, as a result of the PPP loan forgiveness process, many 
PPP-related assets remain on community banking organizations' balance 
sheets. The SBA recently released a simpler loan forgiveness 
application for PPP loans of $50,000 or less, which will likely result 
in PPP-related assets being removed from community banking 
organization's balance sheets at a faster rate.\8\
---------------------------------------------------------------------------

    \5\ See https://www.federalreserve.gov/newsevents/pressreleases/monetary20200409a.htm.
    \6\ See Paycheck Protection Program Liquidity Facility Term 
Sheet, available at https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20200728a7.pdf.
    \7\ U.S. Small Business Administration, ``Notice: Paycheck 
Protection Program closed August 8, 2020,'' available at https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program#section-header-0.
    \8\ U.S. Small Business Administration, ``SBA and Treasury 
Announce Simpler PPP Forgiveness for Loans of $50,000 or Less'', 
October 8, 2020 available at https://www.sba.gov/article/2020/oct/08/sba-treasury-announce-simpler-ppp-forgiveness-loans-50000-or-less.
---------------------------------------------------------------------------

    According to SBA statistics, collectively all lenders with less 
than $10 billion in assets originated 2,745,204 PPP loans totaling 
$233.7 billion, which buttressed the paychecks of more than 26 million 
American workers and represented more than 52.6 percent of the number 
of loans originated under the program.\9\ This data suggests that the 
percentage of PPP loans originated by community banking organizations 
far exceeds those organizations' market share as a percentage of total 
banking system assets illustrating the outsized impact that 
participation in the PPP has had on community banking 
organizations.\10\
---------------------------------------------------------------------------

    \9\ U.S. Small Business Administration, ``Paycheck Protection 
Program (PPP) Report: Approvals through 08/08/2020,'' available at 
https://home.treasury.gov/system/files/136/SBA-Paycheck-Protection-Program-Loan-Report-Round2.pdf.
    \10\ As of the June 30, 2020, approximately 80 percent of 
depository institutions with assets less than $10 billion reported 
PPP loans on their Call Report.
---------------------------------------------------------------------------

    Community banking organizations are subject to a wide range of 
statutory requirements, regulations, and reporting requirements 
predicated on their risk profile and asset size.\11\ Due to their 
response to the COVID event, many community banking organizations have 
been, or may soon be, pushed over an asset threshold that could subject 
them to additional regulation or to additional reporting 
requirements.\12\ In the absence of regulatory burden relief, complying 
with these new or more stringent regulatory standards, especially if 
the community banking organization's assets are expected to be above a 
threshold for a limited time, would impose significant transition and 
compliance costs on community banking organizations. This interim final 
rule gives community banking organizations more time to either reduce 
their balance sheets by shedding temporary growth, or to prepare for 
higher regulatory and reporting standards.
---------------------------------------------------------------------------

    \11\ The agencies recognize there are some guidance documents 
that include asset-based thresholds of $10 billion or below. In 
these instances, the agencies are confirming that these thresholds 
are exemplary only and not suggestive of requirements. For the 
reasons discussed above, the agencies will take the same perspective 
on asset-based thresholds in guidance as they are taking with regard 
to asset-based regulatory thresholds.
    \12\ Based on data as of June 30, 2020, the agencies estimate 
that around 44 holding companies and 582 community banks crossed a 
regulatory threshold set at $10 billion or less.
---------------------------------------------------------------------------

II. Discussion

A. Interim Final Rule

    A number of regulations contain asset-based thresholds that 
determine whether a banking organization is required to comply with a 
given regulatory requirement or provide a mandatory regulatory report, 
or whether a banking organization is otherwise eligible for a 
particular regulatory treatment. Asset-based regulatory thresholds are 
meant to ensure that the regulatory requirements applicable to a 
banking organization are appropriate, given the banking organization's 
likely risk profile and, in some cases, the potential risk that the 
banking organization poses to U.S. financial stability.
    As discussed above, many community banking organizations have 
experienced an unexpected and sharp increase in assets since the 
beginning of the COVID event. This rapid growth has caused the assets 
of certain community banking organizations to rise above certain asset-
based thresholds in the agencies' regulations, and may cause other 
community banking organizations to do so in the near future. As noted, 
much of this growth, especially growth related to PPP lending, is 
likely to be temporary, and the increase in assets currently held by a 
community banking organization may not reflect a change in the 
organization's longer-term risk profile.
    In the absence of regulatory burden relief, community banking 
organizations that experience an increase in assets above one or more 
regulatory thresholds would face significant transition costs necessary 
to comply with new or more stringent regulatory and reporting 
standards. Given the rapid and unexpected nature of community banking 
organization asset growth in 2020, many community banking organizations 
are unlikely to have planned for these transition costs. Further, to 
the extent this asset growth is temporary, it does not reflect changes 
in community banking organizations' risk profiles, and many community 
banking organizations that cross above asset-based regulatory 
thresholds could fall back below the thresholds. Additionally, 
community banking organizations that are approaching certain asset 
thresholds in the agencies' regulations may become reluctant to 
continue lending if this would subject them to new or more stringent 
regulatory and reporting standards. Therefore, the agencies believe it 
is appropriate to provide temporary regulatory burden relief to 
community banking organizations that have risen above, or will rise 
above, certain asset-based regulatory thresholds. The relief should 
promote further lending and avoid potentially temporary, but 
significant, transition costs that community banking organizations 
would otherwise face to comply with new standards.
    In order to provide this regulatory burden relief, the agencies are 
issuing this interim final rule to temporarily change, for a number of 
asset-based regulatory thresholds, the date as of when a community 
banking organization measures its assets for the purpose of determining 
whether it exceeds the threshold (referred to as the ``measurement 
date''). Specifically, the interim final rule will permit community 
banking organizations, through December 31, 2021, to determine the 
applicability of certain asset-based regulatory thresholds using asset 
data as of December 31, 2019, if the organization's assets as of that 
date were less than its assets on the date as

[[Page 77348]]

of which the applicability of a given threshold would normally be 
determined. This means that asset growth in 2020 or 2021 will not 
trigger new regulatory requirements for these community banking 
organizations until January 1, 2022, at the earliest. This temporary 
regulatory burden relief reflects that much of the asset growth since 
the start of the COVID event, especially growth related to PPP lending, 
is generally expected to be temporary in nature and therefore likely 
does not reflect changes in community banking organizations' risk 
profile.
    The agencies are limiting the regulatory burden relief in this 
interim final rule to banking organizations that had less than $10 
billion in assets as of December 31, 2019. Banking organizations with 
under $10 billion in assets likely have fewer resources available to 
prepare and comply with previously unanticipated regulatory 
requirements, especially during a time of economic uncertainty and 
disruption. Further, as discussed above, community banking 
organizations have originated a disproportionately large percentage of 
PPP loans, as compared with the organizations' market share; therefore, 
as compared to larger organizations, a larger portion of any increase 
in asset size at community banking organizations is likely to be 
temporary, and is therefore less likely to reflect a change in an 
organization's risk profile or business activities.
    This temporary regulatory burden relief applies to the following 
asset-based regulatory thresholds: \13\
---------------------------------------------------------------------------

    \13\ This interim final rule does not address the exemption in 
the Board's Regulation H from certain flood insurance escrow 
requirements for qualifying state member banks (less than $1 billion 
in assets as of December 31 of either of the two prior calendar 
years, provided other conditions are also met), 12 CFR 208.25(e)(3), 
or the provision in the Board's Regulation BB defining small bank 
and intermediate small bank for purposes of determining applicable 
Community Reinvestment Act evaluation procedures. As currently 
defined in Regulation BB: a small bank is a bank that, as of 
December 31 of either of the prior two calendar years, had assets of 
less than $1.305 billion; an intermediate small bank is a small bank 
with assets of at least $326 million as of December 31 of both of 
the prior two calendar years and less than $1.305 billion as of 
December 31 of either of the prior two calendar years; and a large 
bank is a bank with assets of at least $1.305 billion as of December 
31 of both of the prior two calendar years, 12 CFR 228.12(u)(1). As 
indicated, the asset-based thresholds in these provisions take into 
account assets as of the end of the two previous calendar years. 
Therefore, the earliest that a bank with assets that did not exceed 
one of these thresholds as of December 31, 2019, could exceed the 
threshold is January 1, 2022. As a result, consistent with this 
interim final rule, asset growth in 2020 or 2021 will not trigger 
new regulatory requirements until January 1, 2022, at the earliest. 
For similar reasons, the interim final rule does not adjust 
thresholds in the OCC and the FDIC's flood insurance escrow rule at 
12 CFR 22.5(c) (OCC) and 12 CFR 339.5(c) (FDIC) and Community 
Reinvestment Act regulatory thresholds for small banks and 
intermediate banks at 12 CFR part 25 (OCC) and 12 CFR 345 (FDIC). 
The OCC also is not adjusting thresholds for depository institution 
management interlocks at 12 CFR part 26, as this part already 
permits any affected bank to request a waiver related to 
unanticipated asset growth.
    \14\ This interim final rule only provides temporary relief with 
regard to the measurement date of assets. Other criteria that apply 
to certain of the affected regulatory provisions remain in effect, 
and the measurement date for other quantities has not been changed 
by this interim final rule.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                              Asset measurement      Asset measurement
             Regulation               Regulatory threshold    Asset-based threshold      Rule location         date  (prior to           date  (for
                                             effect                   \14\                                     January 1, 2022)    requirements in 2022)
--------------------------------------------------------------------------------------------------------------------------------------------------------
OCC: Capital Adequacy Standards      Eligibility for         $10 billion in total    OCC: 12 CFR 3.12.....  December 31, 2019, or  End of the most
 (Part 3).                            community bank          consolidated assets.   Board: 12 CFR 217.12.   the end of the most    recent calendar
Board: Capital Adequacy of Bank       leverage ratio                                 FDIC: 12 CFR 324.12..   recent calendar        quarter.
 Holding Companies, Savings and       framework.                                                             quarter, whichever
 Loan Holding Companies, and State                                                                           results in a lower
 Member Banks (Regulation Q).                                                                                amount.
FDIC: Capital Adequacy of FDIC-
 Supervised Institutions.
Board: Debit Card Interchange Fees   Exemption for small     $10 billion in assets.  Board: 12 CFR          December 31, 2019, or  December 31, 2021.
 and Routing (Regulation II).         issuers.                                        235.5(a).              December 31, 2020,
                                                                                                             whichever results in
                                                                                                             a lower amount.
Board: Management Official           Exemption from          $10 billion in total    Board: 12 CFR          December 31, 2019, or  End of the most
 Interlocks (Regulation L).           prohibition on          assets.                 212.3(c)               the end of the         recent fiscal year.
FDIC: Management Official             service as a                                   FDIC: 12 CFR 348.3(c)   depository
 Interlocks.                          ``management                                                           organization's most
                                      official'' of                                                          recent fiscal year,
                                      multiple institutions.                                                 whichever results in
                                                                                                             a lower amount.
                                     Exemption for honorary  $100 million in total   Board: 12 CFR
                                      or advisory directors   assets.                 212.2(j)(1)
                                      from definition of                             FDIC: 12 CFR
                                      ``management                                    348.2(k)(1)..
                                      official''.
                                     Exemption from          $50 million in total    Board: 12 CFR
                                      relevant metropolitan   assets.                 212.3(b).
                                      statistical area                               FDIC: 12 CFR
                                      prohibition.                                    348.3(b)..
Board: Savings and Loan Holding      Interlocks--Major       $10 billion...........  Board: 12 CFR          December 31, 2019, or  End of the most
 Companies (Regulation LL).           asset prohibition.                              238.93(c).             the end of the         recent fiscal year.
                                                                                                             organization's most
                                                                                                             recent fiscal year,
                                                                                                             whichever results in
                                                                                                             a lower amount.
                                     Audit requirement for   $500 million..........  Board: 12 CFR          December 31, 2019, or  End of the most
                                      safety and soundness                            238.5(b).              end of the             recent fiscal year.
                                      purposes.                                                              organization's most
                                                                                                             recent fiscal year,
                                                                                                             whichever results in
                                                                                                             a lower amount.
                                     Informational           $150 million..........  Board: 12 CFR          December 31, 2019, or  End of the most
                                      requirements for                                238.53(c)(2)(iii)-(i   the end of the most    recent calendar
                                      acquisition of a                                v).                    recent calendar        quarter.
                                      company.                                                               quarter, whichever
                                                                                                             results in a lower
                                                                                                             amount.

[[Page 77349]]

 
                                     Interlocks--Exemption   $100 million..........  Board: 12 CFR          December 31, 2019, or  End of the most
                                      for honorary or                                 238.92(j)(1)           the end of the         recent fiscal year.
                                      advisory directors                                                     organization's most
                                      from definition of                                                     recent fiscal year,
                                      ``management                                                           whichever results in
                                      official''.                                                            a lower amount.
                                     Interlocks--Exemption   $50 million...........  Board: 12 CFR          December 31, 2019, or  End of the most
                                      from relevant                                   238.93(b)              the end of the         recent fiscal year.
                                      metropolitan                                                           organization's most
                                      statistical area                                                       recent fiscal year,
                                      prohibition.                                                           whichever results in
                                                                                                             a lower amount.
OCC: Regulatory Reporting (Part 52)  Eligibility for         $5 billion............  OCC: 12 CFR 52.2       December 31, 2019, or  June 30, 2021.
Board: Membership of State Banking    reduced reporting of                           Board: 12 CFR           June 30, 2020,
 Institutions in the Federal          the Consolidated                                208.122(b).            whichever results in
 Reserve System (Regulation H).       Reports of Condition                           FDIC: 12 CFR            a lower amount.
FDIC: Forms, Instructions, and        and Income (Call                                304.12(a).
 Reports.                             Report).
OCC: Organization and Functions      Eligibility for 18-     $3 billion............  OCC: 12 CFR 4.6(b)...  December 31, 2019, or  End of most recent
 (Part 4, Subpart A).                 month examination                              Board: 12 CFR           the end of the most    calendar quarter.
Board: Membership of State Banking    cycle.                                          208.64(b).             recent calendar
 Institutions in the Federal                                                         FDIC: 12 CFR            quarter, whichever
 Reserve System (Regulation H).                                                       337.12(b).             results in a lower
FDIC: Unsafe and Unsound Bank                                                                                amount.
 Practices.
Board: Membership of State Banking   Eligibility for         $150 million..........  12 CFR 208.36(b).....  December 31, 2019, or  End of the most
 Institutions in the Federal          streamlined method of                                                  the end of the         recent fiscal year.
 Reserve System (Regulation H).       compliance with the                                                    bank's most recent
                                      reporting                                                              fiscal year,
                                      requirements of the                                                    whichever results in
                                      Securities and                                                         a lower amount.
                                      Exchange Commission.
Bank Holding Companies and Change    Various thresholds in   $3 billion, $300        12 CFR 225.4(b)(2)     December 31, 2019, or  Normally applicable
 in Bank Control (Regulation Y).      the Board's rules       million, $150           (iii)(A)-(B),          the end of the most    asset measurement
                                      regarding bank          million, and $50        225.14(a)(1)(v)(A)(1   recent calendar        date.
                                      holding companies and   million.                )-(2),                 quarter, whichever
                                      change in bank                                  225.14(a)(1)(vi),      results in a lower
                                      control (Regulation                             224.14(c)(6)(ii),      amount.
                                      Y) concerning filing                            225.17(a)(6),
                                      requirements and                                225.23(a)(1)(iii)(A)
                                      permissible                                     (1)-(2),
                                      activities.                                     225.23(c)(5)(ii),
                                                                                      225.24(a)(2)(iv)-(v)
                                                                                      , 225.28(b)(11)(vi),
                                                                                      and Appendix C.
OCC: Organization and Functions      Eligibility for an 18-  $3 billion............  OCC: 12 CFR 4.7(b)...  December 31, 2019, or  End of most recent
 (Part 4, Subpart A).                 month examination                              Board: 12 CFR           the end of the most    calendar quarter.
Board: International Banking          cycle for U.S.                                  211.26(c)(2).          recent calendar
 Operations (Regulation K)..          branches and agencies                          FDIC: 12 CFR            quarter, whichever
FDIC: International Banking........   of foreign banks.                               347.211(b).            results in a lower
                                                                                                             amount.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As a result of this temporary regulatory burden relief, a community 
banking organization that was below one of the above-listed asset 
thresholds as of December 31, 2019, generally will be deemed to remain 
below that threshold through the end of 2021, plus any applicable 
transition period provided by the regulation. For example, the Board's 
rules regarding debit card interchange fees and routing include an 
exemption for small issuers, which provides that a debit card issuer is 
not required to comply with certain requirements with respect to an 
electronic debit transaction if the issuer holds the account that is 
debited and the issuer, together with its affiliates, has assets of 
less than $10 billion as of the end of the calendar year preceding the 
date of the electronic debit transaction.\15\ Pursuant to this interim 
final rule, an issuer that, together with its affiliates, had assets of 
$9.9 billion as of December 31, 2019, $10.1 billion as of December 30, 
2020, and $10.1 billion as of December 31, 2021, would be deemed to 
remain below the $10 billion threshold for purposes of this rule 
through the end of 2021, at which point the six-month transition period 
provided by 12 CFR 235.5(a)(3) would begin. Therefore, this issuer 
would not be required to comply with the Board's rules regarding debit 
card interchange fees and routing until July 1, 2022.
---------------------------------------------------------------------------

    \15\ 12 CFR 235.5(a).
---------------------------------------------------------------------------

    The temporary regulatory burden relief provided by this interim 
final rule applies through the end of 2021, so that a community banking 
organization within the scope of the temporary regulatory burden relief 
will not be required to comply with the regulatory or reporting 
requirements covered by this interim final rule until the beginning of 
2022 (plus any applicable transition period),\16\ at the earliest,

[[Page 77350]]

assuming that the organization remains above the relevant threshold.
---------------------------------------------------------------------------

    \16\ See 12 CFR 3.12(c) (OCC); 12 CFR 217.12(c) (Board); 12 CFR 
324.12(c) (FDIC) (community bank leverage ratio framework); 12 CFR 
235.5(a)(3) (rules regarding debit card interchange fees and 
routing).
---------------------------------------------------------------------------

    The agencies have determined not to amend in this interim final 
rule a provision in the agencies' regulations regarding section 13 of 
the Bank Holding Company Act (BHC Act) (commonly known as the Volcker 
Rule). The Volcker Rule generally applies to ``banking entities,'' 
which include insured depository institutions, their affiliates, and 
any company that controls an insured depository institution, among 
other companies.\17\ For purposes of the Volcker Rule, the definition 
of ``insured depository institution'' excludes an insured depository 
institution if the insured depository institution, and every entity 
that controls it, has total consolidated assets equal to or less than 
$10 billion, as long as the total consolidated trading assets and 
liabilities of the insured depository institution, and every entity 
that controls it, are equal to or less than five percent of the insured 
depository institution's total consolidated assets.\18\
---------------------------------------------------------------------------

    \17\ 12 CFR 44.2(c) (OCC); 12 CFR 248.2(c) (Board); 12 CFR 
324.12(c) (FDIC).
    \18\ 12 CFR 44.2(r) (OCC); 12 CFR 248.2(r)(2) (Board); 12 CFR 
351.2(r)(2) (FDIC). The Economic Growth, Regulatory Relief, and 
Consumer Protection Act (EGRRCPA), enacted on May 24, 2018, amended 
section 13 of the BHC Act by modifying the definition of ``banking 
entity,'' to exclude certain small firms from section 13's 
restrictions. EGRRCPA, Public Law 115-174, section 203 (May 24, 
2018). This amendment was effective upon EGRRCPA's enactment.
---------------------------------------------------------------------------

    The agencies have determined that it is not necessary to amend the 
Volcker Rule regulations in order to provide temporary regulatory 
burden relief to a bank or any of its subsidiaries or affiliates that 
become a ``banking entity'' for purposes of the Volcker Rule because 
the assets of the bank or any entity that controls it increase above 
the $10 billion asset threshold. Under section 13 of the BHC Act and 
the Board's rule implementing the conformance period in the Volcker 
Rule,\19\ an entity that newly becomes a ``banking entity'' for 
purposes of the Volcker Rule has two years to come into compliance with 
the requirements of the Volcker Rule, and may seek an extension of the 
conformance period from the Board.\20\ A banking entity that ceases to 
be a banking entity during that period--for example by virtue of 
reducing its asset size--would no longer be subject to the Volcker 
Rule.
---------------------------------------------------------------------------

    \19\ Pursuant to sections (c)(2) and (c)(6) of the Volcker Rule 
(12 U.S.C. 1851(c)(2) and (c)(6)), the Board has sole authority to 
issue rules to implement the Volcker Rule conformance period.
    \20\ See 12 CFR 225.181(a)(2), (3).
---------------------------------------------------------------------------

    The regulation implementing the statutory Volcker Rule conformance 
period have not yet been updated to account for the change in the 
definition of ``banking entity'' implemented by EGRRCPA. However, the 
Board notes that because the changes EGRRCPA made to the Volcker Rule 
were effective immediately upon enactment, the conformance period 
regulation should be read in a way that is consistent with EGRRCPA and 
takes into account the amendments it made to the definition of 
``banking entity.'' Under this interpretation, a company may become a 
new banking entity by virtue of crossing the $10 billion asset 
threshold under the definition of ``banking entity,'' as amended by 
EGRRCPA. Therefore, for the sake of clarification, the Board confirms 
that a company that was not a banking entity, or a subsidiary or 
affiliate of a banking entity, and then becomes a banking entity for 
purposes of the Volcker Rule because it, or any subsidiary or 
affiliate, exceeds $10 billion in assets, will qualify for the 
conformance period described in the Volcker Rule and the Board's 
implementing regulations.\21\ This interpretation covers any company 
that crossed the $10 billion asset threshold after the enactment of 
EGRRCPA on May 24, 2018, including a company that crossed the threshold 
after December 31, 2019.
---------------------------------------------------------------------------

    \21\ Although the conformance regulation refers to a requirement 
that a company was not a banking entity as of July 21, 2010, 
EGRRCPA's change to the definition of ``banking entity'' means that 
a firm that was below the asset threshold as of July 21, 2010, 
regardless of whether it was subject to the Volcker Rule at the 
time, is eligible for the conformance period if it becomes a banking 
entity due to exceeding the asset threshold.
---------------------------------------------------------------------------

A. Reservation of Authority

    The temporary regulatory burden relief described above is generally 
available to community banking organizations that meet the requirements 
described above. However, there may be limited instances in which such 
regulatory burden relief would be inappropriate. In order to address 
certain such situations, the agencies may use existing reservations of 
authority in their respective regulations to require a community 
banking organization to comply with a given regulatory requirement that 
would otherwise not be applicable to the organization pursuant to the 
relief provided by this interim final rule. Additionally, with respect 
to each of the asset-based regulatory thresholds that did not 
previously include a reservation of authority, the interim final rule 
creates a new reservation of authority pursuant to which an agency may 
determine that a community banking organization is not eligible to use 
the relief provision with respect to one or more of the asset 
thresholds covered by the rule if the relevant agency makes an 
institution-specific determination that permitting the institution to 
determine its assets in accordance with that relief provision would not 
be appropriate based on the organization's risk 
profile.^{22 23} When making any such determination, the 
agencies would consider all relevant factors, including the extent of 
asset growth of the community banking organization since December 31, 
2019; the causes of such growth, including whether growth occurred as a 
result of mergers or acquisitions; whether such growth is likely to be 
temporary or permanent; whether the community banking organization has 
become involved in any additional activities since December 31, 2019, 
and, if so, the risk of such activities; the asset size of any parent 
companies; and the type of assets held by the community banking 
organization.\24\
---------------------------------------------------------------------------

    \22\ With respect to the exemption for small issuers from the 
Board's rules regarding debit card interchange fees and routing, the 
reservation of authority will concern a determination related to the 
issuer's asset profile, rather than its risk profile, due to 
differences in the relevant statutory framework.
    \23\ The interim final rule does not include a new reservation 
of authority in connection with the temporary relief provided with 
respect to the $3 billion threshold in the agencies' rules that 
determines, in part, a depository institution's eligibility for an 
18-month examination cycle, because the rules already contain a 
reservation of authority pursuant to which each agency may examine 
any depository institution that it supervises as frequently as the 
agency deems necessary. 12 CFR 4.6(c) and 4.7(c) (OCC); 12 CFR 
208.64(c) (Board); 12 CFR 337.12(c) and 12 CFR 347.211(c) (FDIC). 
Amendments to the agencies' capital regulations governing 
eligibility for use of the community bank leverage ratio framework 
and regulations affecting the prohibition on certain management 
official interlocks each include a reservation of authority. The 
agencies may exercise this reservation of authority to determine 
that such relief provisions shall not apply to a supervised 
institution if the relevant agency determines that such relief would 
not be commensurate with the risk posed by the institution. 
Amendments to the regulations governing eligibility to use the FFIEC 
051 do not include new reservations of authority because the 
existing reservations of authority would continue to apply. The 
existing Call Reports rules reserve the authority of each agency to 
require a depository intuition otherwise eligible for reduced 
reporting to file the FFIEC 041 version of the report of condition. 
12 CFR 52.4 (OCC); 12 CFR 304.14 (FDIC).
    \24\ The temporary regulatory burden relief provided by this 
interim final rule does not eliminate any existing authority of the 
Board to apply a regulatory standard, such as a standard related to 
application processing, to a community banking organization that, 
due to its asset size, would otherwise not qualify for the standard. 
For example, a bank holding company that meets certain 
characteristics, including asset-size limits, may be eligible for 
streamlined application processing. However, the Board or its 
delegatee may in its discretion notify such organizations that a 
full application is required in order to permit a closer review of 
the proposal. Nothing in this interim final rule affects the Board's 
authority to exercise such discretion, to request information that 
is needed to analyze the relevant statutory factors for an 
application or notice, or to consider the ability of a community 
banking organization that files a notice or application with the 
Board to comply with statutory or regulatory requirements that may 
be applicable to the organization upon expiration of the relief 
provided by this interim final rule.
    Certain provisions of the Board's Regulation Y include asset-
based thresholds of $10 billion or below that are based on the pro 
forma consolidated assets of a bank holding company or the 
consolidated risk-weighted assets of a bank holding company 
immediately following consummation of a proposed transaction. With 
regard to these thresholds, the interim final rule permits bank 
holding companies, through 2021, to calculate pro forma assets by 
adding together the assets that each company involved in a business 
combination had as of December 31, 2019. However, the calculation of 
pro forma or combined assets must also include the December 31, 
2019, assets of any company with which any company that is party to 
a proposed business combination has itself combined with since 
December 31, 2019.

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

[[Page 77351]]

    In particular, in determining that the community banking 
organization is not eligible to use a regulatory burden relief 
provision, the relevant agency will consider whether a community 
banking organization crossed an asset-based regulatory threshold due to 
a merger or acquisition that significantly increases the community 
banking organization's asset size. Asset growth that occurs as a result 
of a merger or acquisition is planned, unlike the growth that many 
community banking organizations have experienced since the beginning of 
the COVID event. Community banking organizations crossing a regulatory 
threshold as a result of a merger or acquisition therefore have had the 
opportunity to prepare for the change in regulatory requirements. 
Additionally, asset growth caused by a merger or acquisition is 
generally expected to be permanent and therefore not impose transition 
costs for a requirement expected to be temporary. The reservations of 
authority included in this interim final rule are not limited to 
situations in which there has been a merger or acquisition because, 
even in the absence of a merger or acquisition transaction, significant 
asset growth at a community banking organization may reflect a material 
change in the business model, risk profile, or complexity of the 
community banking organization. Nonetheless, the agencies expect to 
apply the reservation of authority only in limited circumstances, such 
as when there is significant growth due to a merger or acquisition or 
when there is a material change in the business model, risk profile, or 
complexity of the community banking organization.

B. Regulatory Reporting Changes

    Similar to the Board's regulations, a number of the Board's 
regulatory reports contain asset-based thresholds that determine 
whether a banking organization is required to report certain 
information. For the same reason that the Board is providing the 
regulatory burden relief discussed above with regard to determining the 
applicability of asset-based thresholds contained in the Board's 
regulations, the Board is temporarily revising certain of its 
regulatory reports that contain asset-based reporting thresholds set at 
$10 billion or less pursuant to the Board's authority to temporarily 
revise a collection of information without providing the opportunity 
for public comment. This regulatory burden relief applies to reports 
with as-of dates up to and including December 31, 2021. Specifically, 
with regard to each of the regulatory reports discussed below, through 
December 31, 2021, a banking organization will be permitted to 
determine the applicability of asset-based reporting thresholds set at 
$10 billion or less using asset data as of December 31, 2019, if the 
organization's assets as of that date were less than its assets on the 
date as of which the applicability of a given threshold would normally 
be determined. The revisions to the affected reports do not affect the 
substantive reporting instructions for any item, schedule, or report. 
Rather, they merely affect which banking organizations are required to 
report certain items, schedules, or reports.
    As with regard to asset-based regulatory thresholds, and for the 
same reasons, the Board will retain a reservation of authority with 
regard to each of the affected reports, pursuant to which the Board 
would retain the authority to require a banking organization to use an 
asset measurement date other than December 31, 2019, to determine 
compliance with a reporting threshold. The Board will use the same 
factors in determining whether to exercise its reservation of authority 
with regard to reporting thresholds as with regard to regulatory 
thresholds.
    The regulatory burden relief discussed above applies to the 
following information collections:
     Financial Statements for Holding Companies (FR Y-9 
Reports; OMB No. 7100-0128);
     Statements of U.S. Nonbank Subsidiaries of U.S. Holding 
Companies (FR Y-11 and FR Y-11S; 7100-0244);
     Reports of Foreign Banking Organizations (FR Y-7N, FR Y-
7NS, and FR Y-7Q; 7100-0125); and
     Statements of Foreign Subsidiaries of U.S. Banks (FR 2314 
and FR 2314S; OMB No. 7100-0073).
    The agencies plan to publish a separate Federal Register notice 
that will address corresponding changes to the Call Reports.
    The following chart summarizes the manner in which banking 
organizations will be required to determine the applicability of 
various reporting thresholds through the end of 2021 and afterwards.

  Table 1--Reporting Requirements for Affected Federal Reserve Reports
Under the Interim Final Rule and After Regulatory Burden Relief Ends \1\
------------------------------------------------------------------------
                                                       Filers use assets
                                                       as of these dates
                                       Reporting         to  determine
     Information collection        applicability for       reporting
                                       2020-2021        requirement for
                                                           2022 \2\
------------------------------------------------------------------------
FR Y-9C (quarterly)--             Report filing not   Use 06/30/2021
 Consolidated Financial            required for        total assets to
 Statements for Holding            holding company     determine
 Companies.                        below the $3        reporting
                                   billion asset       applicability for
                                   threshold using     reports with 2022
                                   the lesser of       as-of dates.
                                   most current
                                   filing applicable
                                   date or 12/31/
                                   2019 as-of-date.
FR Y-9LP (quarterly)--Parent      Report filing not   Use 06/30/2021
 Company Only Financial            required for        total assets to
 Statements for Large Holding      holding company     determine
 Companies.                        below the $3        reporting
                                   billion asset       applicability for
                                   threshold using     reports with 2022
                                   the lesser of       as-of dates.
                                   most current
                                   filing applicable
                                   date or 12/31/
                                   2019 as-of-date.

[[Page 77352]]

 
FR Y-11 (quarterly)--Financial    Quarterly report    Use 06/30/2021
 Statements of U.S. Nonbank        filing not          total assets to
 Subsidiaries of U.S. Bank         required if         determine
 Holding Companies.                nonbank             eligibility for
                                   subsidiary had      reports with 2022
                                   assets of at        as-of dates.
                                   least $500
                                   million but less
                                   than $1 billion
                                   using the lesser
                                   of most current
                                   filing applicable
                                   date or 12/31/
                                   2019 as-of-date
                                   and does not meet
                                   any the other
                                   criteria to file
                                   quarterly.
FR Y-11 (annual)--Financial       Annual report       Use total assets
 Statements of U.S. Nonbank        filing not          as of the
 Subsidiaries of U.S. Bank         required if         reporting as-of
 Holding Companies.                nonbank             date (12/31/2022)
                                   subsidiary has      to determine
                                   assets of less      reporting
                                   than $500 million   applicability.
                                   using the lesser
                                   of most current
                                   filing applicable
                                   date or 12/31/
                                   2019 as-of-date.
FR Y-11S (annual)--Abbreviated    Report filing not   Use total assets
 Financial Statements of U.S.      required if         as of the
 Nonbank Subsidiaries of U.S.      nonbank             reporting as-of
 Holding Co.                       subsidiary was      date (12/31/2022)
                                   not greater than    to determine
                                   $250 million and    reporting
                                   less than $500      applicability.
                                   million using the
                                   lesser of most
                                   current filing
                                   applicable date
                                   or 12/31/2019 as-
                                   of-date and does
                                   not meet the
                                   other filing
                                   criteria.
FR Y-7N (quarterly)--Financial    Quarterly report    Use total assets
 Statements of U.S. Nonbank        filing not          as of the
 Subsidiaries Held by Foreign      required if         reporting as-of
 Banking Organizations.            nonbank             date to determine
                                   subsidiary was      reporting
                                   below the $1        applicability.
                                   billion asset
                                   threshold using
                                   the lesser of
                                   most current
                                   filing applicable
                                   date or 12/31/
                                   2019 as-of-date
                                   and does not meet
                                   any other filing
                                   criteria.
FR Y-7N (annual)--Financial       Report filing not   Use total assets
 Statements of U.S. Nonbank        required if         as of the
 Subsidiaries Held by Foreign      nonbank             reporting as-of
 Banking Organizations.            subsidiary was      date (12/31/2022)
                                   not greater than    to determine
                                   $500 million and    reporting
                                   less than $1        applicability.
                                   billion using
                                   lesser of most
                                   current filing
                                   applicable date
                                   or 12/31/2019 as-
                                   of-date and does
                                   not meet any
                                   other filing
                                   criteria.
FR Y-7NS (annual)--Abbreviated    Report filing not   Use total assets
 Financial Statements of U.S.      required if         as of the
 Nonbank Subsidiaries Held by      nonbank             reporting as-of
 Foreign Banking Organizations.    subsidiary was      date (12/31/2022)
                                   not greater than    to determine
                                   $250 million and    reporting
                                   less than $500      applicability.
                                   million using the
                                   lesser of most
                                   current filing
                                   applicable date
                                   or 12/31/2019 as-
                                   of-date and does
                                   not meet the
                                   other filing
                                   criteria.
FR 2314 (quarterly)--Financial    Quarterly report    Use 06/30/2021
 Statements of Foreign             filing not          total assets to
 Subsidiaries of U.S. Banking      required if         determine
 Organizations.                    nonbank             eligibility for
                                   subsidiary has      reports with 2022
                                   assets less than    as-of dates.
                                   $1 billion using
                                   the lesser of
                                   most current
                                   filing applicable
                                   date or 12/31/
                                   2019 as-of-date
                                   and does not meet
                                   any of other
                                   criteria to file
                                   quarterly.
FR 2314 (annual)--Financial       Report filing not   Use total assets
 Statements of Foreign             required if         as of the
 Subsidiaries of U.S. Banking      nonbank was not     reporting as-of
 Organizations.                    greater than $500   date (12/31/2022)
                                   million and less    to determine
                                   than $1 billion     reporting
                                   in total assets     applicability.
                                   using lesser of
                                   most current
                                   filing applicable
                                   date or 12/31/
                                   2019 as-of-date.
FR 2314S (annual)--Abbreviated    Report filing not   Use total assets
 Financial Statements of Foreign   required if         as of the
 Subsidiaries of U.S. Banking      nonbank was not     reporting as-of
 Org.                              greater than $250   date (12/31/2022)
                                   million and less    to determine
                                   than $500 million   reporting
                                   in total asset      applicability.
                                   using the lesser
                                   of most current
                                   filing applicable
                                   date or 12/31/
                                   2019 as-of-date.
------------------------------------------------------------------------
\1\ During 2020-2021, applicability of new reporting requirements would
  be based on the December 31, 2019 data. For example, a holding company
  that does not currently file the FR Y-9C will not use its June 2020
  total consolidated assets (TCA) to determine the March 31, 2021,
  filing requirement, and would not be required to file the FR Y-9C
  report until March 21, 2022. After the regulatory burden relief ends,
  the institution would use June 30, 2021, TCA to determine initial
  filing for the March 31, 2022, reporting period.
\2\ Beginning January 1, 2022, asset measurement for applicability of
  reporting will revert-back to how institutions determined
  applicability prior to the reporting relief.

II. Request for Comment

    The agencies seek comment on all aspects of this interim final 
rule. In particular, the agencies seek comment on the duration of the 
temporary regulatory burden relief and on the following specific 
question:
    (1): What are the advantages and disadvantages of requiring 
community banking organizations subject to this interim final rule to 
determine compliance with regulatory thresholds using the lesser of an 
organization's assets as of December 31, 2019, and its assets on the 
date as of which the applicability of a given threshold would normally 
be determined? What would be the advantages and disadvantages of an 
alternative measurement date? Commenters are invited to describe other 
dates and the advantages and disadvantages of any such dates.

III. Administrative Law Matters

A. Administrative Procedure Act

    The agencies are issuing the interim final rule without prior 
notice and the opportunity for public comment and without the 30-day 
delayed effective date ordinarily prescribed by the

[[Page 77353]]

Administrative Procedure Act (APA).\25\ Pursuant to section 553(b)(B) 
of the APA, general notice and the opportunity for public comment are 
not required with respect to a rulemaking when an ``agency for good 
cause finds (and incorporates the finding and a brief statement of 
reasons therefor in the rules issued) that notice and public procedure 
thereon are impracticable, unnecessary, or contrary to the public 
interest.'' \26\
---------------------------------------------------------------------------

    \25\ 5 U.S.C. 553.
    \26\ 5 U.S.C. 553(b)(B).
---------------------------------------------------------------------------

    As discussed above, the interim final rule provides temporary 
regulatory burden relief to community banking organizations crossing 
regulatory and reporting asset thresholds in 2020 and 2021. Many 
community banking organizations have experienced dramatic and 
unexpected increases in their assets as a result of their efforts to 
support the economy during the ongoing COVID event. As noted, a 
significant portion of this asset growth can be traced to participation 
by community banking organizations in emergency lending programs 
sponsored by the U.S. government, other lending related to the COVID 
event, and an unexpected surge in deposits. The interim final rule 
facilitates the ability of community banking organizations to 
temporarily defer the implementation of regulatory and reporting 
thresholds that would not have been applicable had they not experienced 
this growth in assets. Therefore, the interim final rule benefits 
community banking organizations from the above referenced regulations 
and reports by providing temporary regulatory burden relief. The 
interim final rule does not impose any requirements on any covered 
community banking organizations.
    The agencies believe that the public interest is best served by 
making the interim final rule effective immediately upon publication in 
the Federal Register. The agencies believe that issuing the interim 
final rule will ensure that community banking organizations will not be 
unnecessarily required to comply with threshold-based regulatory 
standards that may not be appropriate given the organizations' likely 
long-term risk profile and activities after the reversal of any 
temporary growth. The interim final rule also will allow community 
banking organizations to avoid the costs of temporarily complying with 
regulatory requirements, allowing the banking organizations to continue 
to focus on the provision of credit during this time of economic 
stress. In addition, the agencies believe that providing a notice and 
comment period prior to issuance of the interim final rule is 
impracticable, as community banking organizations may start incurring 
transition costs prior to the end of 2020 in anticipation of needing to 
comply with additional requirements starting as early as December 31, 
2020. For these reasons, the agencies find there is good cause 
consistent with the public interest to issue the interim final rule 
without advance notice and comment.
    The APA also requires a 30-day delayed effective date, except for 
(1) substantive rules which grant or recognize an exemption or relieve 
a restriction; (2) interpretative rules and statements of policy; or 
(3) as otherwise provided by the agency for good cause.\27\ The 
agencies find good cause to publish the interim final rule with an 
immediate effective date for the same reasons set forth above under the 
discussion of section 553(b)(B) of the APA.
---------------------------------------------------------------------------

    \27\ 5 U.S.C. 553(d).
---------------------------------------------------------------------------

    While the agencies believe there is good cause to issue the interim 
final rule without advance notice and comment and with an immediate 
effective date, the agencies are requesting comment on all aspects of 
the interim final rule.

B. Congressional Review Act

    For purposes of Congressional Review Act (CRA), OMB makes a 
determination as to whether a final rule constitutes a ``major'' 
rule.\28\ If a rule is deemed a ``major rule'' by the OMB, the CRA 
generally provides that the rule may not take effect until at least 60 
days following its publication.\29\
---------------------------------------------------------------------------

    \28\ 5 U.S.C. 801 et seq.
    \29\ 5 U.S.C. 801(a)(3).
---------------------------------------------------------------------------

    The CRA defines a ``major rule'' as any rule that the Administrator 
of the Office of Information and Regulatory Affairs of the OMB finds 
has resulted in or is likely to result in (1) an annual effect on the 
economy of $100,000,000 or more; (2) a major increase in costs or 
prices for consumers, individual industries, Federal, State, or local 
government agencies or geographic regions, or (3) significant adverse 
effects on competition, employment, investment, productivity, 
innovation, or on the ability of United States-based enterprises to 
compete with foreign-based enterprises in domestic and export 
markets.\30\
---------------------------------------------------------------------------

    \30\ 5 U.S.C. 804(2).
---------------------------------------------------------------------------

    For the same reasons set forth above, the agencies are adopting the 
interim final rule without the delayed effective date generally 
prescribed under the CRA. The delayed effective date required by the 
CRA does not apply to any rule for which an agency for good cause finds 
(and incorporates the finding and a brief statement of reasons therefor 
in the rule issued) that notice and public procedure thereon are 
impracticable, unnecessary, or contrary to the public interest. In 
light of current market uncertainty and because community banking 
organizations may start incurring transition costs prior to the end of 
2020 in anticipation of needing to comply with additional requirements 
starting as early as December 31, 2020, the agencies believe that 
delaying the effective date of the rule would be contrary to the public 
interest.
    As required by the CRA, the agencies will submit the final rule and 
other appropriate reports to Congress and the Government Accountability 
Office for review.

C. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) states that no agency may 
conduct or sponsor, nor is a respondent required to respond to, an 
information collection unless it displays a currently valid OMB control 
number.\31\ The interim final rule affects the agencies' current 
information collections for the Call Reports (FFIEC 031, FFIEC 041, and 
FFIEC 051). The OMB control numbers for the Call Reports of the 
agencies are: OCC OMB No. 1557-0081; Board OMB No. 7100-0036; and FDIC 
OMB No. 3064-0052.
---------------------------------------------------------------------------

    \31\ 44 U.S.C. 3501-3521.
---------------------------------------------------------------------------

    For purposes of the Call Reports, any change resulting from the 
relief provided by this interim final rule should be minimal and result 
in a zero net change in hourly burden under the agencies' information 
collections. Submissions will, however, be made by the agencies to OMB. 
The changes to the instructions of the Call Reports will be addressed 
in a separate Federal Register notice.
    In addition, this interim final rule does not introduce any new 
information collections. It does, however, temporarily impact the 
following information collections: FR Y-9 Reports; FR Y-11; FR Y-11S; 
FR Y-7N; FR Y-7NS; FR 2314; and FR 2314S. The Board has reviewed this 
interim final rule pursuant to authority delegated by the OMB. The 
Board has temporarily revised the instructions for these information 
collections to reflect changes made in the interim final rule.
    On June 15, 1984, OMB delegated to the Board authority under the 
PRA to approve a temporary revision to a collection of information 
without

[[Page 77354]]

providing opportunity for public comment if the Board determines that a 
change in an existing collection must be instituted quickly and that 
public participation in the approval process would defeat the purpose 
of the collection or substantially interfere with the Board's ability 
to perform its statutory obligation.
    The Board's delegated authority requires that the Board, after 
temporarily approving a collection, solicit public comment on a 
proposal to extend the temporary collection for a period not to exceed 
three years. Therefore, the Board is inviting comment on a proposal to 
extend these information collections for three years with such 
revisions. The Board invites public comment on the information 
collections, which are being reviewed under authority delegated by the 
OMB under the PRA. Comments are invited on the following:
    a. Whether the collections of information are necessary for the 
proper performance of the Board's functions, including whether the 
information has practical utility;
    b. The accuracy of the Board's estimate of the burden of the 
proposed information collections, including the validity of the 
methodology and assumptions used;
    c. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    d. Ways to minimize the burden of information collection on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    e. Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.
    Comments must be submitted on or before February 1, 2021. At the 
end of the comment period, the comments and recommendations received 
will be analyzed to determine the extent to which the Board should 
modify the information collection.
Approval Under OMB Delegated Authority of the Temporary Revision of, 
and Proposal To Extend for Three Years, With Revision, the Following 
Information Collections
1. Report Title: Financial Statements for Holding Companies
    Agency form number: FR Y-9C, FR Y-9LP, FR Y-9SP, FR Y-9ES, and FR 
Y-9CS.
    OMB control number: 7100-0128.
    Effective date: December 2, 2020.
    Frequency: Quarterly, semiannually, and annually.
    Respondents: Bank holding companies, savings and loan holding 
companies, securities holding companies, and U.S. intermediate holding 
companies (collectively, holding companies).
    Estimated number of respondents: FR Y-9C (non-advanced approaches 
community bank leverage ratio holding companies with less than $5 
billion in total assets): 71; FR Y-9C (non-advanced approaches 
community bank leverage ratio holding companies with $5 billion or more 
in total assets): 35; FR Y-9C (non-advanced approaches, non-community 
bank leverage ratio, holding companies with less than $5 billion in 
total assets): 84; FR Y-9C (non-advanced approaches, non-community bank 
leverage ratio holding companies, with $5 billion or more in total 
assets): 154; FR Y-9C (advanced approaches holding companies): 19; FR 
Y-9LP: 434; FR Y-9SP: 3,960; FR Y-9ES: 83; FR Y-9CS: 236.
    Estimated annual burden hours:
Reporting
    FR Y-9C (non-advanced approaches community bank leverage ratio 
holding companies with less than $5 billion in total assets): 8,284 
hours; FR Y-9C (non-advanced approaches community bank leverage ratio 
holding companies with $5 billion or more in total assets): 4,920; FR 
Y-9C (non-advanced approaches non community bank leverage ratio holding 
companies with less than $5 billion in total assets): 13,779; FR Y-9C 
(non-advanced approaches non-community bank leverage ratio holding 
companies with $5 billion or more in total assets): 28,940 hours; FR Y-
9C (advanced approaches holding companies): 3,747 hours; FR Y-9LP: 
9,149 hours; FR Y-9SP: 42,768 hours; FR Y-9ES: 42 hours; FR Y-9CS: 472 
hours.
Recordkeeping
    FR Y-9C (non-advanced approaches holding companies with less than 
$5 billion in total assets): 620 hours; FR Y-9C (non-advanced 
approaches holding companies with $5 billion or more in total assets): 
756 hours; FR Y-9C (advanced approaches holding companies): 76 hours; 
FR Y-9LP: 1,736 hours; FR Y-9SP: 3,960 hours; FR Y-9ES: 42 hours; FR Y-
9CS: 472 hours.
    General description of report: The FR Y-9 family of reporting forms 
continues to be the primary source of financial data on holding 
companies that examiners rely on in the intervals between on-site 
inspections. Financial data from these reporting forms are used to 
detect emerging financial problems, to review performance and conduct 
pre-inspection analysis, to monitor and evaluate capital adequacy, to 
evaluate holding company mergers and acquisitions, and to analyze a 
holding company's overall financial condition to ensure the safety and 
soundness of its operations. The FR Y-9C, FR Y-9LP, and FR Y-9SP serve 
as standardized financial statements for the consolidated holding 
company. The Board requires holding companies to provide standardized 
financial statements to fulfill the Board's statutory obligation to 
supervise these organizations. The FR Y-9ES is a financial statement 
for holding companies that are Employee Stock Ownership Plans. The 
Board uses the voluntary FR Y-9CS (a free-form supplement) to collect 
additional information deemed to be critical and needed in an expedited 
manner. Holding companies file the FR Y-9C quarterly, the FR Y-9LP 
quarterly, the FR Y-9SP semiannually, the FR Y-9ES annually, and the FR 
Y-9CS on a schedule that is determined when this supplement is used.
    Legal authorization and confidentiality: The Board has the 
authority to impose the reporting and recordkeeping requirements 
associated with the FR Y-9 family of reports on bank holding companies 
pursuant to section 5 of the BHC Act, (12 U.S.C. 1844); on savings and 
loan holding companies pursuant to section 10(b)(2) and (3) of the Home 
Owners' Loan Act, (12 U.S.C. 1467a(b)(2) and (3)); on U.S. intermediate 
holding companies pursuant to section 5 of the BHC Act, (12 U.S.C 
1844), as well as pursuant to sections 102(a)(1) and 165 of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), 
(12 U.S.C. 511(a)(1) and 5365); and on securities holding companies 
pursuant to section 618 of the Dodd-Frank Act, (12 U.S.C. 
1850a(c)(1)(A)). The FR Y-9 series of reports, and the recordkeeping 
requirements set forth in the respective instructions to each report, 
are mandatory, except for the FR Y-9CS, which is voluntary.
    With respect to the FR Y-9C, Schedule HI Memoranda item 7.g, 
Schedule HC-P item 7.a, and Schedule HC-P item 7.b are considered 
confidential commercial and financial information under exemption 4 of 
the Freedom of Information Act (FOIA), (5 U.S.C. 552(b)(4)), as is 
Schedule HC Memoranda item 2.b for both the FR Y-9C and FR Y-9SP 
reports. Such treatment is appropriate under exemption 4 of the FOIA (5 
U.S.C. 552(b)(4)) because these data items reflect commercial and 
financial information that is both customarily and actually treated as 
private by the

[[Page 77355]]

submitter, and which the Board has previously assured submitters will 
be treated as confidential. It also appears that disclosing these data 
items may reveal confidential examination and supervisory information, 
and in such instances, this information would also be withheld pursuant 
to exemption 8 of the FOIA (5 U.S.C. 552(b)(8)), which protects 
information related to the supervision or examination of a regulated 
financial institution.
    In addition, for both the FR Y-9C report and the FR Y-9SP report, 
Schedule HC Memoranda item 2.b, the name and email address of the 
external auditing firm's engagement partner, is considered confidential 
commercial information and protected by exemption 4 of the FOIA (5 
U.S.C. 552(b)(4)) if the identity of the engagement partner is treated 
as private information by holding companies. The Board has assured 
respondents that this information will be treated as confidential since 
the collection of this data item was proposed in 2004.
    Additionally, items on the FR Y-9C, Schedule HC-C regarding loans 
modified under Section 4013 (Memoranda item 16.a, ``Number of Section 
4013 loans outstanding'', and Memoranda item 16.b, ``Outstanding 
balance of Section 4013 loans'') are considered confidential. While the 
Board generally makes institution-level FR Y-9C report data publicly 
available, the Board believes the disclosure of these items at the 
holding company level would not be in the public interest.\32\ Such 
information is permitted to be collected on a confidential basis, 
consistent with 5 U.S.C. 552(b)(8).\33\ Holding companies may be 
reluctant to offer modifications under Section 4013 if information on 
these modifications is publicly available, as analysts, investors, and 
other users of public FR Y-9C report information may penalize an 
institution for using the relief provided by the CARES Act.
---------------------------------------------------------------------------

    \32\ See 12 U.S.C. 1464(v)(2).
    \33\ Exemption 8 of the Freedom of Information Act (FOIA) 
specifically exempts from disclosure information ``contained in or 
related to examination, operating, or condition reports prepared by, 
on behalf of, or for the use of an agency responsible for the 
regulation or supervision of financial institutions.''
---------------------------------------------------------------------------

    Aside from the data items described above, the remaining data items 
on the FR Y-9 report and the FR Y-9SP report are generally not accorded 
confidential treatment. The data items collected on FR Y-9LP, FR Y-9ES, 
and FR Y-9CS reports, are also generally not accorded confidential 
treatment. As provided in the Board's Rules Regarding Availability of 
Information (12 CFR part 261), however, a respondent may request 
confidential treatment for any data items the respondent believes 
should be withheld pursuant to a FOIA exemption. The Board will review 
any such request to determine if confidential treatment is appropriate, 
and will inform the respondent if the request for confidential 
treatment has been denied.
    To the extent that the instructions to the FR Y-9C, FR Y-9LP, FR Y-
9SP, and FR Y-9ES reports each respectively direct a financial 
institution to retain the workpapers and related materials used in 
preparation of each report, such material would only be obtained by the 
Board as part of the examination or supervision of the financial 
institution. Accordingly, such information may be considered 
confidential pursuant to exemption 8 of the FOIA (5 U.S.C. 552(b)(8)). 
In addition, the financial institution's workpapers and related 
materials may also be protected by exemption 4 of the FOIA, to the 
extent such financial information is treated as confidential by the 
respondent (5 U.S.C. 552(b)(4)).
2. Report Title: Financial Statements of U.S. Nonbank Subsidiaries of 
U.S. Holding Companies and Abbreviated Financial Statements of U.S 
Nonbank Subsidiaries of U.S. Holding Companies
    Agency form number: FR Y-11 and FR Y-11S.
    OMB control number: 7100-0244.
    Effective date: December 2, 2020.
    Frequency: Quarterly and annually.
    Respondents: Domestic bank holding companies, savings and loan 
holding companies, securities holding companies, and intermediate 
holding companies.
    Estimated number of respondents: FR Y-11 (quarterly): 445; FR Y-11 
(annually): 189; FR Y-11S: 273.
    Estimated annual burden hours: FR Y-11 (quarterly): 13,528 hours; 
FR Y-11 (annually): 1,436 hours; FR Y-11S: 273 hours.
    General description of report: The FR Y-11 family of reports 
collects financial information for individual U.S. nonbank subsidiaries 
of domestic holding companies, which is essential for monitoring the 
subsidiaries' potential impact on the condition of the holding company 
or its subsidiary banks. Holding companies file the FR Y-11 on a 
quarterly or annual basis or the FR Y-11S on an annual basis, 
predominantly based on whether the organization meets certain asset 
size thresholds.
    Legal authorization and confidentiality: The Board has the 
authority to require bank holding companies and any subsidiary thereof, 
savings and loan holding companies and any subsidiary thereof, and 
securities holding companies and any affiliate thereof to file the FR 
Y-11 pursuant to, respectively, section 5(c) of the BHC Act (12 U.S.C. 
1844(c)), section 10(b) of the Homeowners' Loan Act (12 U.S.C. 
1467a(b)), and section 618 of the Dodd-Frank Act (12 U.S.C. 1850a).
    Information collected in these reports generally is not considered 
confidential. However, because the information is collected as part of 
the Board's supervisory process, certain information may be afforded 
confidential treatment pursuant to exemption 8 of the FOIA (5 U.S.C. 
552(b)(8)). Individual respondents may request that certain data be 
afforded confidential treatment pursuant to exemption 4 of the FOIA if 
the data has not previously been publically disclosed and the release 
of the data would likely cause substantial harm to the competitive 
position of the respondent (5 U.S.C. 552(b)(4)). Additionally, 
individual respondents may request that personally identifiable 
information be afforded confidential treatment pursuant to exemption 6 
of the FOIA if the release of the information would constitute a 
clearly unwarranted invasion of personal privacy (5 U.S.C. 552(b)(6)). 
The applicability of the FOIA exemptions 4 and 6 would be determined on 
a case-by-case basis.
3. Report Title: The Financial Statements of U.S. Nonbank Subsidiaries 
Held by Foreign Banking Organizations, Abbreviated Financial Statements 
of U.S. Nonbank Subsidiaries Held by Foreign Banking Organizations, and 
the Capital and Asset Report of Foreign Banking Organizations
    Agency form number: FR Y-7N, FR Y-7NS, and FR Y-7Q.
    OMB control number: 7100-0125.
    Effective date: December 2, 2020.
    Frequency: Quarterly and annually.
    Respondents: Foreign banking organizations.
    Estimated number of respondents: FR Y-7N (quarterly): 35; FR Y-7N 
(annually): 19; FR Y-7NS: 22; FR Y-7Q (quarterly): 130; FR Y-7Q 
(annually): 29.
    Estimated annual burden hours: FR Y-7N (quarterly): 1,064 hours; FR 
Y-7N (annually): 144 hours; FR Y-7NS: 22 hours; FR Y-7Q (quarterly): 
1,560 hours; FR Y-7Q (annually): 44 hours.
    General description of report: The FR Y-7N and the FR Y-7NS are 
used to assess a foreign banking organization's ability to be a 
continuing source of strength to its U.S. nonbank operations and to 
determine compliance with U.S.

[[Page 77356]]

laws and regulations. Foreign banking organizations file the FR Y-7N 
quarterly or annually, or the FR Y-7NS annually, predominantly based on 
asset size thresholds. The FR Y-7Q is used to assess consolidated 
regulatory capital and asset information from all foreign banking 
organizations. The FR Y-7Q is filed quarterly by foreign banking 
organizations that have effectively elected to become or be treated as 
a U.S. financial holding company and by foreign banking organizations 
that have total consolidated assets of $50 billion or more, regardless 
of financial holding company status. All other foreign banking 
organizations file the FR Y-7Q annually.
    Legal authorization and confidentiality: With respect to foreign 
banking organizations and their subsidiary intermediate holding 
companies, section 5(c) of the BHC Act, in conjunction with section 8 
of the International Banking Act (12 U.S.C. 3106), authorizes the board 
to require foreign banking organizations and any subsidiary thereof to 
file the FR Y-7N reports, and the FR Y-7Q. Information collected in 
these reports generally is not considered confidential. However, 
because the information is collected as part of the Board's supervisory 
process, certain information may be afforded confidential treatment 
pursuant to exemption 8 of the FOIA (5 U.S.C. 552(b)(8)). Individual 
respondents may request that certain data be afforded confidential 
treatment pursuant to exemption 4 of the FOIA if the data has not 
previously been publicly disclosed and the release of the data would 
likely cause substantial harm to the competitive position of the 
respondent (5 U.S.C. 552(b)(4)). Additionally, individual respondents 
may request that personally identifiable information be afforded 
confidential treatment pursuant to exemption 6 of the FOIA if the 
release of the information would constitute a clearly unwarranted 
invasion of personal privacy (5 U.S.C. 552(b)(6)). The applicability of 
the FOIA exemptions 4 and 6 would be determined on a case-by-case 
basis.
4. Report Title: Financial Statements of Foreign Subsidiaries of U.S. 
Banking Organizations and the Abbreviated Financial Statements of 
Foreign Subsidiaries of U.S. Banking Organizations
    Agency form number: FR 2314 and FR 2314S.
    OMB control number: 7100-0073.
    Effective date: December 2, 2020.
    Frequency: Quarterly and annually.
    Respondents: U.S. state member banks, bank holding companies, 
savings and loan holding companies, intermediate holding companies, and 
Edge or agreement corporations.
    Estimated number of respondents: FR 2314 (quarterly): 439; FR 2314 
(annually): 239; FR 2314S: 300.
    Estimated annual burden hours: FR 2314 (quarterly): 12,643 hours; 
FR 2314 (annually): 1,768 hours; FR 2314S: 300 hours.
    General description of report: The FR 2314 family of reports is the 
only source of comprehensive and systematic data on the assets, 
liabilities, and earnings of the foreign nonbank subsidiaries of U.S. 
banking organizations, and the data are used to monitor the growth, 
profitability, and activities of these foreign companies. The data help 
the Board identify present and potential problems of these companies, 
monitor their activities in specific countries, and develop a better 
understanding of activities within the industry and within specific 
institutions. Parent organizations (state member banks, Edge and 
agreement corporations, or holding companies) file the FR 2314 on a 
quarterly or annual basis, or the FR 2314S on an annual basis, 
predominantly based on whether the organization meets certain asset 
size thresholds.
    Legal authorization and confidentiality: The Board has the 
authority to require bank holding companies and any subsidiary thereof, 
savings and loan holding companies and any subsidiary thereof, and 
securities holding companies and any affiliate thereof to file the FR 
2314 pursuant to, respectively, section 5(c) of the BHC Act (12 U.S.C. 
1844(c)), section 10(b) of the Homeowners' Loan Act (12 U.S.C. 
1467a(b)), and section 618 of the Dodd-Frank Act (12 U.S.C. 1850a). The 
Board has the authority to require state member banks, agreement 
corporations, and Edge corporations to file the FR 2314 pursuant to, 
respectively, sections 9(6), 25(7), and 25A(17) of the Federal Reserve 
Act (12 U.S.C. 324, 602, and 625). With respect to foreign banking 
organizations and their subsidiary intermediate holding companies, 
section 5(c) of the BHC Act, in conjunction with section 8 of the 
International Banking Act (12 U.S.C. 3106), authorizes the board to 
require foreign banking organizations and any subsidiary thereof to 
file the FR 2314 reports. These reports are mandatory.
    Information collected in these reports generally is not considered 
confidential. However, because the information is collected as part of 
the Board's supervisory process, certain information may be afforded 
confidential treatment pursuant to exemption 8 of the FOIA (5 U.S.C. 
552(b)(8)). Individual respondents may request that certain data be 
afforded confidential treatment pursuant to exemption 4 of the FOIA if 
the data has not previously been publically disclosed and the release 
of the data would likely cause substantial harm to the competitive 
position of the respondent (5 U.S.C. 552(b)(4)). Additionally, 
individual respondents may request that personally identifiable 
information be afforded confidential treatment pursuant to exemption 6 
of the FOIA if the release of the information would constitute a 
clearly unwarranted invasion of personal privacy (5 U.S.C. 552(b)(6)). 
The applicability of the FOIA exemptions 4 and 6 would be determined on 
a case-by-case basis.
    Current actions: The interim final rule adjusts for community 
banking organizations the measurement dates for certain total asset 
thresholds that would otherwise trigger additional information 
collection requirements for the remainder of calendar years 2020 
through the end of 2021. The temporary relief applies only to filing 
requirements associated with asset-based reporting thresholds of $10 
billion or less. Table 1 of the interim final rule contains a summary 
of affected reports, reporting applicability for 2020-2021, and the 
dates for determining reporting requirements for 2022.
    To implement the interim final rule, the Board is temporarily 
revising the instructions for the following reports: FR Y-9C, FR Y-9LP, 
FR Y-11, FR Y-11S, FR Y-7N, FR Y-7NS, FR 2314, and FR 2314S. The 
revised instructions instruct community banking organizations to use 
the lesser of total assets as of December 31, 2019, or the most recent 
applicable measurement period to determine the applicability of asset-
based filing thresholds for the remainder of calendar years 2020 
through the end of 2021. All reporting eligibility criteria for these 
information collections, besides the temporarily revised total assets 
measurement date, continue to apply. Financial institutions must revert 
back to normal rules for determining applicability of the reporting 
requirements in calendar year 2022, as summarized in Table 1.
    The Board believes the changes to the measurement dates for the 
total asset thresholds used to determine additional reporting 
requirements will not result in a change in the burden estimates 
currently approved by OMB. Therefore, the burden estimates for these 
reports remain unchanged by the interim final rule.
    The FR Y-9C instructions currently contain filing thresholds of $5 
billion

[[Page 77357]]

and $10 billion that trigger the reporting of additional schedules and 
the reporting of certain data items at a higher frequently. These 
thresholds would be impacted by the changes in the interim final rule. 
Whether additional FR Y-9C requirements apply would normally be based 
on total consolidated assets as of June 30 of the prior year. With the 
revisions in the interim final rule, community banking organizations 
may instead use the lesser of total consolidated assets as of December 
31, 2019, or June 30, 2020, to determine whether additional filing 
requirements are applicable.
    Specifically, the additional filing requirements for the FR Y-9C 
that would otherwise be triggered by the $5 billion and $10 billion 
threshold are as follows:
     The $5 billion threshold requires these holding companies 
to report Schedule HI-C, Part I, Disaggregated Data on the Allowance 
for Loan and Lease Losses; Schedule HC-D, Trading Assets and 
Liabilities; Schedule HC-P, 1-4 Family Residential Mortgage Banking 
Activities in Domestic Offices; Schedule HC-Q, Assets and Liabilities 
Measured at Fair Value; Schedule HC-S, Servicing, Securitization, and 
Asset Sale Activities; and Schedule HC-V, Variable Interest Entities.
     The $5 billion threshold requires these holding companies 
to report Schedule HI item 1.e, interest income from trading assets; 
Schedule HI item 2.c, interest on trading liabilities and other 
borrowed money; Schedule HI item 2.d, interest on subordinated notes 
and debentures and on mandatory convertible securities; Schedule HI 
item 5.c, trading revenue; Schedule HI items 5.d.(1) through 5.d.(5), 
related to various fees and commissions on securities brokerage 
investments, investment banking, and insurance; Schedule HI item 5.e, 
venture capital revenue; Schedule HI item 5.g, net securitization 
income; Schedule HI Memoranda item 1, net interest income on a fully 
taxable equivalent basis; Schedule HI Memoranda item 2, net income 
before applicable income taxes, and discontinued operations; Schedule 
HI Memoranda items 8.a.(1) through 8.b.(2), discontinued operations and 
applicable income tax effect; Schedule HI Memoranda items 9.a through 
9.e, related to trading revenue; Schedule HI Memoranda item 11, credit 
losses on derivatives; Schedule HI Memoranda items 12.a through 12.c, 
detail pertaining to income from the sale and servicing of mutual funds 
and annuities (in domestic offices); Schedule HI Memoranda items 14.a. 
through 14.b.(1), related to net gains (losses) recognized in earnings 
on assets and liabilities that are reported at fair value under a fair 
value option; Schedule HI Memoranda item 15, stock-based employee 
compensation expense; Schedule HI-B, Part I, items 4.a and 4.b, columns 
A and B, commercial and industrial loans; Schedule HI-B, Part I, item 
6, columns A and B, loans to foreign governments and official 
institutions; Schedule HI-B, Part I, items 8.a and 8.b, lease finance 
receivables; Schedule HI-B, Part I, Memoranda item 2, columns A and B, 
loans secured by real estate to non-U.S. addressees; Schedule HI-B, 
Part I, Memoranda item 3, uncollectible retail credit card fees and 
finance charges reversed against income; Schedule HI-B, Part II, 
Memoranda item 1, allocated transfer risk reserve; Schedule HI-B, Part 
II, Memoranda item 2, separate valuation allowance for uncollectible 
retail credit card fees and finance charges; Schedule HI-B, Part II, 
Memoranda item 3, allowance for loan and lease losses attributable to 
retail credit card fees and finance charges; Schedule HI-B, Part II, 
Memoranda item 4, allowance for post-acquisition credit losses on 
purchased credit-impaired loans; Schedule HC-B, items 4.a.(1) through 
4.a.(3), residential pass-through securities; Schedule HC-C, items 4.a 
and 4.b, commercial and industrial loans; Schedule HC-C, items 9.b.(1) 
through 9.b.(2), column A and B, loans for purchasing or carrying 
securities and all other loans; Schedule HC-C, items 10.a and 10.b, 
column A, lease financing receivables; Schedule HC-C Memoranda items 
1.e.(1) and 1.e.(2), commercial and industrial loans; Schedule HC-C 
Memoranda item 3, loans secured by real estate to non-U.S. addressees; 
Schedule HC-C Memoranda item 4, outstanding credit card fees and 
finance charges; Schedule HC-C Memoranda items 12.a through 12.d, loans 
and leases held for investment (not subject to the requirements of FASB 
ASC 310-30) that are acquired in business combinations with acquisition 
dates in the current calendar year; Schedule HC-K, item 4.a, trading 
assets; Schedule HC-L item 1.b.(1), unused consumer credit card lines; 
Schedule HC-L 1.b.(2), other unused credit card lines; Schedule HC-L 
item 1.d, securities underwriting; Schedule HC-L items 2.a and 3.a, 
financial and performance standby letters of credit conveyed to others; 
Schedule HC-L items 7.a through 7.d.(2)(b), related to credit 
derivatives; Schedule HC-L items 11.a through 14.b.(2), pertaining to 
derivatives positions; Schedule HC-M items 6.a.(1)(a)(1) through 6.d, 
pertaining to assets covered by loss-sharing agreements with the 
Federal Deposit Insurance Corporation; Schedule HC-N, items 8.a and 
8.b, columns A, B, and C; Schedule HC-N items 12.a.(1)(a) through 12.f, 
pertaining to loans and leases which are covered by loss-sharing 
agreements with the Federal Deposit Insurance Corporation; Schedule HC-
N Memoranda items 1.e.(1) and 1.e.(2), columns A, B, and C, commercial 
and industrial loans; and Schedule HC-N Memoranda item 6, fair value of 
derivative contract amounts carried as assets.
     The $5 billion threshold requires these holding companies 
to report quarterly rather than annual Schedule HI Memoranda items 6.a 
through 6.j, other noninterest income; Schedule HI Memoranda items 7.a 
through 7.p, other noninterest expense; and Schedule HI Memoranda 16, 
noncash income from negative amortization on closed-end loans secured 
by 1-4 family residential properties; and quarterly rather than semi-
annual, Schedule HI Memoranda item 17, other-than-temporary impairment 
losses on held-to-maturity and available-for-sale debt securities 
recognized in earnings; Schedule HI-C, Part II, items 7 through 11, 
disaggregated data on the allowance for credit losses; Schedule HC-C 
Memoranda items 1.a.(1) through 1.f.(3)(c), pertaining to loans 
restructured in troubled debt restructurings that are in compliance 
with their modified terms; Schedule HC-N Memoranda items 1.a.(1) 
through 1.d.(2) and 1.e.(3) through 1.f.(3)(c), related to loans 
restructured in troubled debt restructurings that are in compliance 
with their modified terms; Schedule HC-R, Part II, items 1 through 25, 
columns A through U, risk-weighted assets; Schedule HC-R, Part II 
Memoranda item 1, current credit exposure across all derivative 
contracts; Schedule HC-R, Part II Memoranda item 2, columns A, B, and 
C, notional principal amounts of over-the-counter derivative contracts; 
and Schedule HC-R, Part II, Memoranda item 3, columns A, B, and C, 
notional principal amounts of centrally cleared derivatives contracts.
     The $10 billion threshold requires these holding companies 
to report Schedule HI Memoranda items 10.a and 10.b, related to net 
gains/losses on credit derivatives; Schedule HC-B Memoranda items 5.a 
through 5.f, related to asset-backed securities; Schedule HC-B 
Memoranda items 6.a through 6.g, related to structured financial 
products by underlying collateral or reference assets; Schedule HC-L 
item 15, pertaining to the additional information on over-the-

[[Page 77358]]

counter derivatives; and Schedule HC-S items 6 and 10, and Schedule HC-
S Memoranda item 3, related to securitization activity. Holding 
companies that cross the $10 billion threshold would be ineligible to 
opt-in into the community bank leverage ratio framework and would be 
required to file the additional Schedule HC-R, Part I and HC-R, Part II 
line items.
    The Board has determined that the temporary revisions to these 
collections of information must be instituted quickly and that public 
participation in the approval process would defeat the purpose of the 
collections. Delaying the revisions would cause public harm if firms 
were adversely affected due to participating in the PPP or had to bear 
temporary compliance costs.
    In addition, the Board proposes to extend the collections of 
information for three years with the revisions discussed above.

D. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) \34\ requires an agency to 
consider whether the rules it proposes will have a significant economic 
impact on a substantial number of small entities.\35\ The RFA applies 
only to rules for which an agency publishes a general notice of 
proposed rulemaking pursuant to 5 U.S.C. 553(b). As discussed 
previously, consistent with section 553(b)(B) of the APA, the agencies 
have determined for good cause that general notice and opportunity for 
public comment is unnecessary, and therefore the agencies are not 
issuing a notice of proposed rulemaking. Accordingly, the agencies have 
concluded that the RFA's requirements relating to initial and final 
regulatory flexibility analysis do not apply.
---------------------------------------------------------------------------

    \34\ 5 U.S.C. 601 et seq.
    \35\ Under regulations issued by the Small Business 
Administration, a small entity includes a depository institution, 
bank holding company, or savings and loan holding company with total 
assets of $600 million or less and trust companies with total assets 
of $41.5 million or less. See 13 CFR 121.201.
---------------------------------------------------------------------------

    Nevertheless, the agencies seek comment on whether, and the extent 
to which, the interim final rule would affect a significant number of 
small entities.

E. Riegle Community Development and Regulatory Improvement Act of 1994

    Pursuant to section 302(a) of the Riegle Community Development and 
Regulatory Improvement Act of 1994 (RCDRIA) \36\ 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, each federal banking agency must consider, 
consistent with principles of safety and soundness and the public 
interest, any administrative burdens that regulations would place on 
depository institutions, including small depository institutions, and 
customers of depository institutions, as well as the benefits of such 
regulations.
---------------------------------------------------------------------------

    \36\ 12 U.S.C. 4802(a).
---------------------------------------------------------------------------

    In addition, section 302(b) of RCDRIA requires new regulations and 
amendments to regulations that impose additional reporting, 
disclosures, or other new requirements on insured depository 
institutions generally to 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.\37\ The agencies have determined that the 
final rule would not impose additional reporting, disclosure, or other 
requirements; therefore, the requirements of the RCDRIA do not apply.
---------------------------------------------------------------------------

    \37\ 12 U.S.C. 4802.
---------------------------------------------------------------------------

F. Unfunded Mandates Reform Act of 1995

    As a general matter, the Unfunded Mandates Reform Act of 1995 
(UMRA), 2 U.S.C. 1531 et seq., requires the preparation of a budgetary 
impact statement before promulgating a rule that includes a Federal 
mandate that may result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of $100 
million or more in any one year. However, the UMRA does not apply to 
final rules for which a general notice of proposed rulemaking was not 
published. See 2 U.S.C. 1532(a). Therefore, because the OCC has found 
good cause to dispense with notice and comment for this interim final 
rule, the OCC has not prepared an economic analysis of the rule under 
the UMRA.

G. Use of Plain Language

    Section 722 of the Gramm-Leach-Bliley Act \38\ requires the Federal 
banking agencies to use plain language in all proposed and final rules 
published after January 1, 2000. In light of this requirement, the 
agencies have sought to present the interim final rule in a simple and 
straightforward manner and invite comment on the use of plain language. 
For example:
---------------------------------------------------------------------------

    \38\ Public Law 106-102, 113 Stat. 1338, 1471, 12 U.S.C. 4809.
---------------------------------------------------------------------------

     Is the material organized to suit your needs? If not, how 
could the agencies present the interim final rule more clearly?
     Are the requirements in the interim final rule clearly 
stated? If not, how could the interim final rule be more clearly 
stated?
     Does the interim final rule contain technical language or 
jargon that is not clear? If so, which language requires clarification?
     Would a different format (grouping and order of sections, 
use of headings, paragraphing) make the interim final rule easier to 
understand? If so, what changes would achieve that?
     Is this section format adequate? If not, which of the 
sections should be changed and how?
     What other changes can the agencies incorporate to make 
the interim final rule easier to understand?

List of Subjects

12 CFR Part 3

    Administrative practice and procedure, Capital, Federal savings 
associations, National banks, Risk.

12 CFR Part 4

    Administrative practice and procedure, Freedom of information, 
Individuals with disabilities, Minority businesses, Organization and 
functions (Government agencies), Reporting and recordkeeping 
requirements, Women.

12 CFR Part 52

    Banks, Banking, Reporting and recordkeeping requirements.

12 CFR Part 208

    Accounting, Agriculture Banks, Banking, Confidential business 
information, Consumer protection, Crime Currency, Federal Reserve 
System, Flood insurance, Insurance, Investments, Mortgages, Reporting 
and recordkeeping requirements, Securities.

12 CFR Part 211

    Exports, Federal Reserve System, Foreign banking, Holding 
companies, Investments.

12 CFR Part 212

    Antitrust, Banks, Banking, Holding companies.

12 CFR Part 217

    Administrative practice and procedure, Banks, Banking, Federal 
Reserve System, Holding companies, Investments, National banks, 
Reporting and recordkeeping requirements, Securities.

12 CFR Part 225

    Administrative practice and procedure, Banks, Banking, Capital 
planning, Holding companies, Reporting and recordkeeping requirements, 
Securities, Stress testing.

[[Page 77359]]

12 CFR Part 235

    Accounting, Banks, Banking.

12 CFR Part 238

    Administrative practice and procedure, Banks, Banking, Federal 
Reserve System, Reporting and recordkeeping requirements, Securities.

12 CFR Part 304

    Bank deposit insurance, Banks, Banking, Freedom of information, 
Reporting and recordkeeping requirements.

12 CFR Part 324

    Administrative practice and procedure, Banks, Banking, Capital, 
Capital adequacy, Reporting and recordkeeping requirements, State non-
member banks, Savings associations.

12 CFR Part 337

    Banks, Banking, Reporting and recordkeeping requirements, Savings 
associations.

12 CFR Part 347

    Authority delegations (Government agencies), Bank deposit 
insurance, Banks, Banking, Credit, Foreign banking, Investments, 
Reporting and recordkeeping requirements, U.S. investments abroad.

12 CFR Part 348

    Antitrust, Banks, Banking, Holding companies, Savings associations.

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Chapter I

Authority and Issuance

    For the reasons stated in the joint preamble, the Office of the 
Comptroller of the Currency amends chapter I of Title 12 of the Code of 
Federal Regulations as follows:

PART 3--CAPITAL ADEQUACY STANDARDS

0
1. The authority citation for part 3 continues to read as follows:

    Authority:  12 U.S.C. 93a, 161, 1462, 1462a, 1463, 1464, 1818, 
1828(n), 1828 note, 1831n note, 1835, 3907, 3909, 5412(b)(2)(B), and 
Pub. L. 116-136, 134 Stat. 281.


0
2. Section 3.12 is amended by adding paragraph (a)(4) to read as 
follows:


Sec.  3.12  Community bank leverage ratio framework.

    (a) * * *
    (4)(i) Temporary relief. From December 2, 2020 through December 31, 
2021, except as provided in paragraph (a)(4)(ii) of this section, the 
total consolidated assets of a national bank or Federal savings 
association for purposes of paragraph (a)(2)(ii) of this section shall 
be the lesser of:
    (A) The total consolidated assets reported by the national bank or 
Federal savings association in its Call Report as of December 31, 2019; 
and
    (B) The total consolidated assets of the national bank or Federal 
savings association calculated in accordance with the reporting 
instructions to the Call Report as of the end of the most recent 
calendar quarter.
    (ii) Reservation of authority. The temporary relief provided under 
paragraph (a)(4)(i) of this section does not apply to a national bank 
or Federal savings association if the OCC determines that permitting 
the institution to determine its assets in accordance with that 
paragraph would not be commensurate with the risk posed by the 
institution. When making this determination, the OCC will consider all 
relevant factors, including the extent of asset growth of the national 
bank or Federal savings association since December 31, 2019; the causes 
of this growth, including whether this growth occurred as a result of a 
merger or acquisition; whether such growth is likely to be temporary or 
permanent; whether the national bank or Federal savings association has 
become involved in any additional activities since December 31, 2019; 
and the type of assets held by the national bank or Federal savings 
association. The OCC will notify a national bank or Federal savings 
association of a determination under this paragraph. A national bank or 
Federal savings association may, not later than 30 days after the date 
of a determination by the OCC, inform the OCC, in writing, of why the 
national bank or Federal savings association should be eligible for the 
temporary relief. The OCC will make a final determination after 
reviewing any response.
* * * * *

PART 4--ORGANIZATION AND FUNCTIONS, AVAILABILITY AND RELEASE OF 
INFORMATION, CONTRACTING OUTREACH PROGRAM, POST-EMPLOYMENT 
RESTRICTIONS FOR SENIOR EXAMINERS

SUBPART A--Organization and Functions

0
3. The authority citation for part 4 continues to read as follows: 
Authority: 5 U.S.C. 301, 552; 12 U.S.C. 1, 93a, 161, 481, 482, 484(a), 
1442, 1462a, 1463, 1464 1817(a), 1818, 1820, 1821, 1831m, 1831p-1, 
1831o, 1833e, 1867, 1951 et seq., 2601 et seq., 2801 et seq., 2901 et 
seq., 3101 et seq., 3401 et seq., 5321, 5412, 5414; 15 U.S.C. 77uu(b), 
78q(c)(3); 18 U.S.C. 641, 1905, 1906; 29 U.S.C. 1204; 31 U.S.C. 
5318(g)(2), 9701; 42 U.S.C. 3601; 44 U.S.C. 3506, 3510; E.O. 12600 (3 
CFR, 1987 Comp., p. 235).

0
4. Section 4.6 is amended by adding paragraph (d) to read as follows:


Sec.  4.6  Frequency of examination of national banks and Federal 
savings associations.

* * * * *
    (d) Through December 31, 2021, for purposes of determining 
eligibility for the 18-month rule described in paragraph (b) of this 
section, the OCC may determine the total assets of a national bank or 
Federal savings association by reference to the total assets of the 
national bank or Federal savings association as reported by the 
national bank or Federal savings association in its Call Report as of 
December 31, 2019.

0
5. Section 4.7 is amended by adding paragraph (d) to read as follows:


Sec.  4.7   Frequency of examination of Federal agencies and branches.

* * * * *
    (d) Through December 31, 2021, for purposes of determining 
eligibility for the 18-month rule described in paragraph (b) of this 
section, the OCC may determine total assets of a Federal branch or 
agency by reference to the total assets of the Federal branch or agency 
as reported by the Federal branch or agency as of December 31, 2019.

PART 52--REGULATORY REPORTING

0
6. The authority citation for part 52 continues to read as follows:

    Authority: 12 U.S.C. 93a, 161, 1463(a), 1464(v), and 
1817(a)(12).


0
7. Add Sec.  52.5 to read as follows:


Sec.  52.5   Temporary relief.

    In determining whether it meets the asset threshold in paragraph 
(1) of the definition of ``covered depository institution'' in Sec.  
52.5 of this part, for purposes of a report required to be submitted 
for calendar year 2021, a national bank, Federal savings association, 
or insured Federal branch may refer to the lesser of its total 
consolidated assets as reported in its report of condition as of 
December 31, 2019, and its total consolidated assets as reported in its 
report of condition for the second calendar quarter of 2020.

[[Page 77360]]

Board of Governors of the Federal Reserve System

12 CFR Chapter I

Authority and Issuance

    For the reasons stated in the joint preamble, chapter II of title 
12 of the Code of Federal Regulations is amended as follows:

PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL 
RESERVE SYSTEM (REGULATION H)

0
8. The authority citation for part 208 continues to read as follows:

    Authority:  12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321-
338a, 371d, 461, 481-486, 601, 611, 1814, 1816, 1817(a)(3), 
1817(a)(12), 1818, 1820(d)(9), 1833(j), 1828(o), 1831, 1831o, 1831p-
1, 1831r-1, 1831w, 1831x, 1835a, 1882, 2901-2907, 3105, 3310, 3331-
3351, 3905-3909, 5371, and 5371 note; 15 U.S.C. 78b, 78I(b), 78l(i), 
780-4(c)(5), 78q, 78q-1, 78w, 1681s, 1681w, 6801, and 6805; 31 
U.S.C. 5318; 42 U.S.C. 4012a, 4104a, 4104b, 4106, and 4128.

Subpart C--Bank Securities and Securities-Related Activities

0
9. Amend Sec.  208.36 by adding paragraph (b)(3) to read as follows:


Sec.  208.37   Reporting requirements for State member banks subject to 
the Securities Exchange Act of 1934.

* * * * *
    (b) * * *
    (3) Notwithstanding paragraph (b)(1) of this section, a member bank 
may, from December 2, 2020, through December 31, 2021, make the 
election described in paragraph (b)(1) of this section if it has no 
foreign offices and had total assets of $150 million or less, 
determined based on the lesser of total assets as of December 31, 2019, 
and total assets as of the end of the bank's most recent fiscal year. 
The relief provided under this paragraph (b)(3) of this section does 
not apply to a member bank if the Board determines that permitting the 
member bank to determine its assets in accordance with that paragraph 
would not be commensurate with the risk profile of the member bank. 
When making this determination, the Board will consider all relevant 
factors, including the extent of asset growth of the member bank since 
December 31, 2019; the causes of such growth, including whether growth 
occurred as a result of mergers or acquisitions; whether such growth is 
likely to be temporary or permanent; whether the member bank has become 
involved in any additional activities since December 31, 2019; the 
asset size of any parent companies; and the type of assets held by the 
member bank. In making a determination pursuant to this paragraph 
(b)(3), the Board will apply notice and response procedures in the same 
manner and to the same extent as the notice and response procedures in 
12 CFR 263.202.
* * * * *

Subpart D--Miscellaneous Requirements

0
10. Amend Sec.  208.64 by adding paragraph (d) to read as follows:


Sec.  208.64   Frequency of examination.

* * * * *
    (d)(1) Except as provided in paragraph (c) of this section, from 
December 2, 2020, through December 31, 2021, for purposes of 
determining eligibility for the extended examination cycle described in 
paragraph (b) of this section, the total assets of a member bank shall 
be determined based on the lesser of:
    (i) The assets of the member bank as of December 31, 2019; and
    (ii) The assets of the member bank as of the end of the most recent 
calendar quarter.
    (2) Nothing in paragraph (d)(1) of this section limits the 
authority of the Federal Reserve to examine any member bank as 
frequently as the agency deems necessary pursuant to paragraph (c) of 
this section.
* * * * *

Subpart K--Forms, Instructions and Reports

0
11. Amend Sec.  208.121 by revising the definition of ``Covered 
depository institution'' to read as follows:


Sec.  208.121   Definitions.

* * * * *
    Covered depository institution means a state member bank that meets 
all of the following criteria:
    (1) Has less than $5 billion in total consolidated assets as 
reported in its report of condition for the second calendar quarter of 
the preceding year, except that, during the calendar year 2021, a state 
member bank shall determine whether it meets the requirement in 
paragraph (1) of this section by using the lesser of its total 
consolidated assets as reported in its report of condition as of 
December 31, 2019, and its total consolidated assets as reported in its 
report of condition for the second calendar quarter of 2020. The relief 
provided under this paragraph (1) of this section does not apply to a 
state member bank if the Board determines that permitting the state 
member bank to determine its assets in accordance with that paragraph 
would not be commensurate with the risk profile of the state member 
bank. When making this determination, the Board will consider all 
relevant factors, including the extent of asset growth of the state 
member bank since December 31, 2019; the causes of such growth, 
including whether growth occurred as a result of mergers or 
acquisitions; whether such growth is likely to be temporary or 
permanent; whether the state member bank has become involved in any 
additional activities since December 31, 2019; the asset size of any 
parent companies; and the type of assets held by the state member bank. 
In making a determination pursuant to this paragraph (1), the Board 
will apply notice and response procedures in the same manner and to the 
same extent as the notice and response procedures in 12 CFR 263.202.
    (2) Has no foreign offices, as defined in this section;
    (3) Is not required to or has not elected to use 12 CFR part 217, 
subpart E, to calculate its risk-based capital requirements; and
    (4) Is not a large institution or highly complex institution, as 
such terms are defined in 12 CFR 327.8, or treated as a large 
institution, as requested under 12 CFR 327.16(f).
* * * * *

PART 211--INTERNATIONAL BANKING OPERATIONS (REGULATION K)

0
12. The authority citation for part 211 continues to read as follows:

    Authority: 12 U.S.C. 221 et seq., 1818, 1835a, 1841 et seq., 
3101 et seq., 3901 et seq., and 5101 et seq.; 15 U.S.C. 1681s, 
1681w, 6801 and 6805.

Subpart B--Foreign Banking Organizations

0
13. Amend Sec.  211.26 by adding paragraph (c)(2)(iii) to read as 
follows:


Sec.  211.26  Examination of offices and affiliates of foreign banks.

* * * * *
    (c) * * *
    (2) * * *
    (iii)(A) Except as provided in paragraph (c)(2)(iii)(B) of this 
section, from December 2, 2020 through December 31, 2021, for purposes 
of determining eligibility for the extended examination cycle described 
in paragraph (c)(2) of this section, the total assets of a branch or 
agency shall be determined based on the lesser of:

[[Page 77361]]

    (1) The total assets of the branch or agency as of December 31, 
2019; and
    (2) The total assets of the branch or agency as of the end of the 
most recent calendar quarter.
    (B) The relief provided under paragraph (c)(2)(iii)(A) of this 
section does not apply to a branch or agency if the Board determines 
that permitting the branch or agency to determine its assets in 
accordance with that paragraph would not be commensurate with the risk 
profile of the branch or agency. When making this determination, the 
Board will consider all relevant factors, including the extent of asset 
growth of the branch or agency since December 31, 2019; the causes of 
such growth, including whether growth occurred as a result of mergers 
or acquisitions; whether such growth is likely to be temporary or 
permanent; whether the branch or agency has become involved in any 
additional activities since December 31, 2019; the asset size of any 
parent companies; and the type of assets held by the branch or agency. 
In making a determination pursuant to this paragraph (c)(2)(iii)(B), 
the Board will apply notice and response procedures in the same manner 
and to the same extent as the notice and response procedures in 12 CFR 
263.202.
* * * * *

PART 212--MANAGEMENT OFFICIAL INTERLOCKS

0
14. The authority citation for part 212 continues to read as follows:

    Authority:  12 U.S.C. 3201-3208; 15 U.S.C. 19.


0
15. Amend Sec.  212.2 by adding paragraph (o)(3) to read as follows:


Sec.  212.2   Definitions.

* * * * *
    (o) * * *
    (3)(i) Notwithstanding paragraph (o)(1) of this section, and except 
as provided in paragraph (o)(3)(ii) of this section, from December 2, 
2020, through December 31, 2021, the term total assets, with respect to 
a depository organization, means the lesser of assets of the depository 
organization reported on a consolidated basis as of December 31, 2019, 
and assets reported as of the end of the depository organization's most 
recent fiscal year on a consolidated basis as of December 31, 2020.
    (ii) The relief provided under paragraph (o)(3)(i) of this section 
does not apply to a depository organization if the Board determines 
that permitting the depository organization to determine its assets in 
accordance with that paragraph would not be commensurate with the risk 
profile of the depository organization. When making this determination, 
the Board will consider all relevant factors, including the extent of 
asset growth of the depository organization since December 31, 2019; 
the causes of such growth, including whether growth occurred as a 
result of mergers or acquisitions; whether such growth is likely to be 
temporary or permanent; whether the depository organization has become 
involved in any additional activities since December 31, 2019; the 
asset size of any parent companies; and the type of assets held by the 
depository organization. In making a determination pursuant to this 
paragraph (o)(3)(ii), the Board will apply notice and response 
procedures in the same manner and to the same extent as the notice and 
response procedures in 12 CFR 263.202.
* * * * *

PART 217--CAPITAL ADEQUACY OF BANK HOLDING COMPANIES, SAVINGS AND 
LOAN HOLDING COMPANIES, AND STATE MEMBER BANKS (REGULATION Q)

0
16. The authority citation for part 217 continues to read as follows:

    Authority:  12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a, 
1818, 1828, 1831n, 1831o, 1831p-1, 1831w, 1835, 1844(b), 1851, 3904, 
3906-3909, 4808, 5365, 5368, 5371, 5371 note, and sec. 4012, Pub. L. 
116-136, 134 Stat. 281.

Subpart B--Capital Ratio Requirements and Buffers

0
17. Amend Sec.  217.12 by adding paragraph (a)(4) to read as follows:


Sec.  217.12   Community bank leverage ratio framework.

    (a) * * *
    (4) Temporary relief for 2020 and 2021. (i) Except as provided in 
paragraph (a)(4)(ii) of this section, from December 2, 2020, through 
December 31, 2021, for purposes of determining whether a Board-
regulated institution satisfies the criterion in paragraph (a)(2)(ii) 
of this section, the total consolidated assets of a Board-regulated 
institution for purposes of paragraph (a)(2)(ii) of this section shall 
be determined based on the lesser of:
    (A) The total consolidated assets reported by the institution in 
the Call Report, FR Y-9C, or FR Y-9SP, as applicable, as of December 
31, 2019; and
    (B) The total consolidated assets calculated in accordance with the 
reporting instructions to the Call Report or to Form FR Y-9C, as 
applicable, as of the end of the most recent calendar quarter.
    (ii) The relief provided under this paragraph (a)(4)(i) does not 
apply to a Board-regulated institution if the Board determines that 
permitting the Board-regulated institution to determine its assets in 
accordance with that paragraph would not be commensurate with the risk 
profile of the Board-regulated institution. When making this 
determination, the Board will consider all relevant factors, including 
the extent of asset growth of the Board-regulated institution since 
December 31, 2019; the causes of such growth, including whether growth 
occurred as a result of mergers or acquisitions; whether such growth is 
likely to be temporary or permanent; whether the Board-regulated 
institution has become involved in any additional activities since 
December 31, 2019; the asset size of any parent companies; and the type 
of assets held by the Board-regulated institution. In making a 
determination pursuant to this paragraph (a)(4)(ii), the Board will 
apply notice and response procedures in the same manner and to the same 
extent as the notice and response procedures in 12 CFR 263.202.
* * * * *

PART 225--BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(REGULATION Y)

0
18. The authority citation for part 225 continues to read as follows:

    Authority:  12 U.S.C. 1817(j)(13), 1818, 1828(o), 1831i, 1831p-
1, 1843(c)(8), 1844(b), 1972(1), 3106, 3108, 3310, 3331-3351, 3906, 
3907, and 3909; 15 U.S.C. 1681s, 1681w, 6801 and 6805.

Subpart A--General Provisions

0
19. Add Sec.  225.10 to subpart A to read as follows:


Sec.  225.10  Temporary relief for 2020 and 2021.

    (a) Except as provided in paragraph (c) of this section and subject 
to the provisions of paragraph (d) of this section, from December 2, 
2020, through December 31, 2021, the consolidated assets, consolidated 
risk-weighted assets, total consolidated assets, and total assets of a 
bank holding company for purposes of Sec. Sec.  225.4(b)(2)(iii)(A) and 
(B), 225.14(a)(1)(v)(A)(1) and (2), 225.14(a)(1)(vi), 
225.23(a)(1)(iii)(A)(1) and (2), 225.24(a)(2)(iv) and (v), and 
225.28(b)(11)(vi) shall be determined based on the lesser of each such 
amount as of December 31, 2019, and as of the otherwise applicable 
asset measurement date of the relevant paragraph.

[[Page 77362]]

    (b) Except as provided in paragraph (c) of this section and subject 
to the provisions of paragraph (d) of this section, from December 2, 
2020, through December 31, 2021, for purposes of determining the 
applicability of Sec. Sec.  224.14(c)(6)(ii), 225.17(a)(6), and 
225.23(c)(5)(ii) of this part and appendix C to this part, the pro 
forma consolidated assets of a bank holding company and the 
consolidated risk-weighted assets of a bank holding company immediately 
following consummation of a transaction each shall be calculated as the 
lesser of:
    (1) Such amount calculated as the sum of the assets of each company 
involved in the proposed business combination, as well as any company 
with which any such company has combined since December 31, 2019, as of 
December 31, 2019; and
    (2) Such amount calculated as the sum of the assets of each company 
involved in the proposed business combination as of the end of the most 
recent calendar quarter.
    (c) The relief provided under paragraphs (a) and (b) of this 
section does not apply to a bank holding company if the Board 
determines that permitting the bank holding company to determine its 
assets in accordance with that paragraph would not be commensurate with 
the risk profile of the bank holding company. When making this 
determination, the Board will consider all relevant factors, including 
the extent of asset growth of the bank holding company since December 
31, 2019; the causes of such growth, including whether growth occurred 
as a result of mergers or acquisitions; whether such growth is likely 
to be temporary or permanent; whether the bank holding company has 
become involved in any additional activities since December 31, 2019; 
the asset size of any parent companies; and the type of assets held by 
the bank holding company. In making a determination pursuant to this 
section, the Board will apply notice and response procedures in the 
same manner and to the same extent as the notice and response 
procedures in 12 CFR 263.202.
    (d) Nothing in this section limits the discretion of the Board or 
its delegatee to disallow the use of any expedited action process, 
require the submission of additional information in connection with a 
notice or application, or consider the ability of a bank holding 
company filing a notice or application under this part to comply with 
any statutory or regulatory requirements that may be applicable to the 
bank holding company upon expiration of the relief provided by this 
section.

PART 235--DEBIT CARD INTERCHANGE FEES AND ROUTING (REGULATION II)

0
20. The authority citation for part 235 continues to read as follows:

    Authority: 15 U.S.C. 1693o-2.


0
21. The heading for part 235 is revised to read as set forth above.

0
22. Amend Sec.  235.5 by adding paragraph (a)(4) to read as follows:


Sec.  235.5   Exemptions.

* * * * *
    (a) * * *
    (4)(i) Temporary relief for 2020 and 2021. Except as provided in 
paragraph (a)(4)(ii) of this section, for purposes of determining 
eligibility for the exemption for small issuers described in paragraph 
(a)(1) of this section, issuer asset size that is calculated as of the 
end of the calendar year 2020 shall be determined based on the lesser 
of:
    (A) The assets of the issuer, together with its affiliates, as of 
the end of the calendar year 2019; and
    (B) The assets of the issuer, together with its affiliates, as of 
the end of the calendar year 2020.
    (ii) The relief provided under this paragraph (a)(4) does not apply 
to an issuer if the Board determines that permitting the issuer to 
determine its assets in accordance with that paragraph would not be 
commensurate with the asset profile of the issuer. When making this 
determination, the Board will consider all relevant factors, including 
the extent of asset growth of the issuer since December 31, 2019; the 
causes of such growth, including whether growth occurred as a result of 
mergers or acquisitions; whether such growth is likely to be temporary 
or permanent; whether the issuer has become involved in any additional 
activities since December 31, 2019; the asset size of any parent 
companies; and the type of assets held by the issuer. In making a 
determination pursuant to this paragraph (a)(4)(ii), the Board will 
apply notice and response procedures in the same manner and to the same 
extent as the notice and response procedures in 12 CFR 263.202.
* * * * *

PART 238--SAVINGS AND LOAN HOLDING COMPANIES (REGULATION LL)

0
23. The authority citation for part 238 continues to read as follows:

    Authority: 5 U.S.C. 552, 559; 12 U.S.C. 1462, 1462a, 1463, 1464, 
1467, 1467a, 1468, 5365; 1813, 1817, 1829e, 1831i, 1972, 15 U.S.C. 
78l.

Subpart A--General Provisions

0
24. Amend Sec.  238.5 by revising paragraph (b) to read as follows:


Sec.  238.5  Audit of savings association holding companies.

* * * * *
    (b) Audits required for safety and soundness purposes. (1) The 
Board requires an independent audit for safety and soundness purposes 
if, as of the beginning of its fiscal year, a savings and loan holding 
company controls savings association subsidiary(ies) with aggregate 
consolidated assets of $500 million or more.
    (2) Except as provided in paragraph (b)(3) of this section, with 
regard to a savings and loan holding company's fiscal year beginning in 
the calendar years 2020 or 2021, the applicability of the requirement 
in paragraph (b)(1) of this section shall be determined based on the 
lesser of:
    (i) The aggregate consolidated assets of the savings and loan 
holding company as of December 31, 2019; and
    (ii) The aggregate consolidated assets of the savings and loan 
holding company as of the end of its fiscal year ending in calendar 
year 2020.
    (3) The relief provided under paragraph (b)(2) of this section does 
not apply to a savings and loan holding company if the Board determines 
that permitting the savings and loan holding company to determine its 
assets in accordance with that paragraph would not be commensurate with 
the risk profile of the savings and loan holding company. When making 
this determination, the Board will consider all relevant factors, 
including the extent of asset growth of the savings and loan holding 
company since December 31, 2019; the causes of such growth, including 
whether growth occurred as a result of mergers or acquisitions; whether 
such growth is likely to be temporary or permanent; whether the savings 
and loan holding company has become involved in any additional 
activities since December 31, 2019; the asset size of any parent 
companies; and the type of assets held by the savings and loan holding 
company. In making a determination pursuant to this paragraph (b)(3), 
the Board will apply notice and response procedures in the same manner 
and to the same extent as the notice and response procedures in 12 CFR 
263.202.
* * * * *

[[Page 77363]]

Subpart F--Savings and Loan Holding Company Activities and 
Acquisitions

0
25. Amend Sec.  238.53 by adding paragraph (c)(3) to read as follows:


Sec.  238.53   Prescribed services and activities of savings and loan 
holding companies.

* * * * *
    (c) * * *
    (3)(i) Except as provided in paragraph (c)(3)(ii) of this section, 
from December 2, 2020, until December 31, 2021, the determination of 
whether a savings and loan holding company must comply with the filing 
requirements in paragraph (c)(2)(iii) or (iv) of this section shall be 
made based on the lesser of:
    (A) The consolidated assets of the savings and loan holding company 
as of December 31, 2019; and
    (B) The consolidated assets of the savings and loan holding company 
as of the end of the most recent calendar quarter.
    (ii) The relief provided under paragraph (c)(3)(i) of this section 
does not apply to a savings and loan holding company if the Board 
determines that permitting the savings and loan holding company to 
determine its assets in accordance with that paragraph would not be 
commensurate with the risk profile of the savings and loan holding 
company. When making this determination, the Board will consider all 
relevant factors, including the extent of asset growth of the savings 
and loan holding company since December 31, 2019; the causes of such 
growth, including whether growth occurred as a result of mergers or 
acquisitions; whether such growth is likely to be temporary or 
permanent; whether the savings and loan holding company has become 
involved in any additional activities since December 31, 2019; the 
asset size of any parent companies; and the type of assets held by the 
savings and loan holding company. In making a determination pursuant to 
this paragraph (c)(3)(ii), the Board will apply notice and response 
procedures in the same manner and to the same extent as the notice and 
response procedures in 12 CFR 263.202.
* * * * *

Subpart J--Management Official Interlocks

0
26. Amend Sec.  238.92 by adding paragraph (p)(3) to read as follows:


Sec.  238.92  Definitions.

* * * * *
    (p) * * *
    (3) Temporary relief for 2020 and 2021. Notwithstanding paragraph 
(p)(1) of this section, from December 2, 2020, through December 31, 
2021, for purposes of this subpart J, the term total assets, with 
respect to a depository organization, means the lesser of assets of the 
depository organization reported on a consolidated basis as of December 
31, 2019, and assets reported on a consolidated basis as of the end of 
the most recent fiscal year. The relief provided under this paragraph 
(p)(3) does not apply to a depository organization if the Board 
determines that permitting the depository organization to determine its 
assets in accordance with that paragraph would not be commensurate with 
the risk profile of the depository organization. When making this 
determination, the Board will consider all relevant factors, including 
the extent of asset growth of the depository organization since 
December 31, 2019; the causes of such growth, including whether growth 
occurred as a result of mergers or acquisitions; whether such growth is 
likely to be temporary or permanent; whether the depository 
organization has become involved in any additional activities since 
December 31, 2019; the asset size of any parent companies; and the type 
of assets held by the depository organization. In making a 
determination pursuant to this paragraph (p)(3), the Board will apply 
notice and response procedures in the same manner and to the same 
extent as the notice and response procedures in 12 CFR 263.202.
* * * * *

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Chapter III

Authority and Issuance

    For the reasons stated in the preamble, the Federal Deposit 
Insurance Corporation amends chapter III of Title 12, Code of Federal 
Regulations as follows:

PART 304--FORMS, INSTRUCTIONS, AND REPORTS

0
27. The authority citation for part 304 continues to read as follows:

    Authority:  12 U.S.C. 1464(v), 1817(a), and 1819 Tenth.


0
28. Amend Sec.  304.12 by adding paragraph (a)(6) to read as follows:


 Sec.  304.12  Definitions.

    (a) * * *
    (6) In determining whether an insured depository institution meets 
the asset threshold in paragraph (1) of the definition of ``covered 
depository institution'' in paragraph (a)(1) of this section, for 
purposes of a report required to be submitted for calendar year 2021, 
an insured depository institution may refer to the lesser of its total 
consolidated assets as reported in its report of condition as of 
December 31, 2019, and its total consolidated assets as reported in its 
report of condition for the second calendar quarter of 2020.

PART 324--CAPITAL ADEQUACY OF FDIC-SUPERVISED INSTITUTIONS

0
29. The authority citation for part 324 is revised to read as follows:

    Authority: 12 U.S.C. 1815(a), 1815(b), 1816, 1818(a), 1818(b), 
1818(c), 1818(t), 1819(Tenth), 1828(c), 1828(d), 1828(i), 1828(n), 
1828(o), 1831o, 1835, 3907, 3909, 4808; 5371; 5412; Pub. L. 102-233, 
105 Stat. 1761, 1789, 1790 (12 U.S.C. 1831n note); Pub. L. 102-242, 
105 Stat. 2236, 2355, as amended by Pub. L. 103-325, 108 Stat. 2160, 
2233 (12 U.S.C. 1828 note); Pub. L. 102-242, 105 Stat. 2236, 2386, 
as amended by Pub. L. 102-550, 106 Stat. 3672, 4089 (12 U.S.C. 1828 
note); Pub. L. 111-203, 124 Stat. 1376, 1887 (15 U.S.C. 78o-7 note), 
Pub. L. 115-174; section 4014 Sec.  201, Pub. L. 116-136, 134 Stat. 
281 (15 U.S.C. 9052).

0
30. Amend Sec.  324.12 by adding paragraph (a)(4) to read as follows:


Sec.  324.12   Community bank leverage ratio framework.

    (a) * * *
    (4)(i) Temporary relief--From December 2, 2020 through December 31, 
2021, for purposes of determining whether an FDIC-supervised 
institution satisfies the criterion in paragraph (a)(2)(ii) of this 
section, except as provided in paragraph (a)(4)(ii) of this section, 
the total consolidated assets of an FDIC-supervised institution for 
purposes of paragraph (a)(2)(ii) of this section shall be determined 
based on the lesser of:
    (A) The total consolidated assets reported by the institution in 
the Call Report as of December 31, 2019; and
    (B) The total consolidated assets calculated in accordance with the 
reporting instructions to the Call Report as of the end of the most 
recent calendar quarter.
    (ii) Reservation of authority--The temporary relief provided under 
this paragraph (a)(4)(i) of this section does not apply to an FDIC-
supervised institution if the FDIC determines that permitting the FDIC-
supervised institution to determine its assets in accordance with that 
paragraph would not be commensurate with the risk posed by the 
institution. When making this determination, the FDIC will consider all 
relevant factors, including the extent of asset growth of the FDIC-
supervised institution since December

[[Page 77364]]

31, 2019; the causes of such growth, including whether growth occurred 
as a result of mergers or acquisitions; whether such growth is likely 
to be temporary or permanent; whether the FDIC-supervised institution 
has become involved in any additional activities since December 31, 
2019; and the type of assets held by the FDIC-supervised institution. 
The FDIC will notify an FDIC-supervised institution of a determination 
under this paragraph. An FDIC-supervised institution may, not later 
than 30 days after the date of a determination by the FDIC, inform the 
FDIC, in writing, of why the FDIC-supervised institution should be 
eligible for the temporary relief. The FDIC will make a final 
determination after reviewing any response.
* * * * *

PART 337--UNSAFE AND UNSOUND BANK PRACTICES

0
31. The authority citation for part 337 continues to read as follows:

    Authority:  12 U.S.C. 375a(4), 375b, 1463, 1464, 1468, 1816, 
1818(a), 1818(b), 1819, 1820(d), 1821(f), 1828(j)(2), 1831, 1831f, 
1831g, 5412.


0
32. Amend Sec.  337.12 by adding paragraph (d) to read as follows:


Sec.  337.12  Frequency of examination.

* * * * *
    (d) From December 2, 2020, through December 31, 2021, for purposes 
of determining eligibility for the extended examination cycle described 
in paragraph (b) of this section, the total assets of an institution 
shall be determined based on the lesser of:
    (1) The assets of the institution as of December 31, 2019; and
    (2) The assets of the institution as of the end of the most recent 
calendar quarter.

PART 347--INTERNATIONAL BANKING

0
33. The authority citation for part 347 continues to read as follows:

    Authority:  12 U.S.C. 1813, 1815, 1817, 1819, 1820, 1828, 3103, 
3104, 3105, 3108, 3109; Pub. L. 111-203, section 939A, 124 Stat. 
1376, 1887 (July 21, 2010) (codified 15 U.S.C. 78o-7 note).


0
34. Amend Sec.  347.211 by adding paragraph (d) to read as follows:


Sec.  347.21  Examination of branches of foreign banks.

* * * * *
    (d) From December 2, 2020, through December 31, 2021, for purposes 
of determining eligibility for the extended examination cycle described 
in paragraph (b) of this section, the total assets of an insured branch 
shall be determined based on the lesser of:
    (1) The assets of the insured branch as of December 31, 2019; and
    (2) The assets of the insured branch as of the end of the most 
recent calendar quarter.

PART 348--MANAGEMENT OFFICIAL INTERLOCKS

0
35. The authority citation for part 348 continues to read as follows:

    Authority: 12 U.S.C. 1823(k), 3207.


0
36. Amend Sec.  348.2 by adding paragraph (q)(3) to read as follows:


Sec.  348.2  Other definitions and rules of construction.

* * * * *
    (q) * * *
    (3)(i) Temporary relief for 2020 and 2021. Notwithstanding 
paragraph (q)(1) of this section, from December 2, 2020, through 
December 31, 2021, except as provided in paragraph (q)(3)(ii) of this 
section, the term total assets, with respect to a depository 
organization, means the lesser of assets of the depository organization 
reported on a consolidated basis as of December 31, 2019, and assets 
reported on a consolidated basis as of December 31, 2020.
    (ii) Reservation of authority. The temporary relief provided under 
this paragraph (q)(3)(i) of this section does not apply to an FDIC-
supervised institution if the FDIC determines that permitting the FDIC-
supervised institution to determine its assets in accordance with that 
paragraph would not be commensurate with the risk posed by the 
institution. When making this determination, the FDIC will consider all 
relevant factors, including the extent of asset growth of the FDIC-
supervised institution since December 31, 2019; the causes of such 
growth, including whether growth occurred as a result of mergers or 
acquisitions; whether such growth is likely to be temporary or 
permanent; whether the FDIC-supervised institution has become involved 
in any additional activities since December 31, 2019; and the type of 
assets held by the FDIC-supervised institution.
* * * * *

Brian P. Brooks,
Acting Comptroller of the Currency.

    By order of the Board of Governors of the Federal Reserve 
System.
Ann Misback,
Secretary of the Board.

Federal Deposit Insurance Corporation.

    By order of the Board of Directors.

    Dated at Washington, DC, on or about November 17, 2020.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2020-26138 Filed 12-1-20; 8:45 am]
BILLING CODE 6210-01-P

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