Regulatory Publication and Review Under the Economic Growth and Regulatory Paperwork Reduction Act of 1996, 99751-99760 [2024-28939]

Download as PDF 99751 Proposed Rules Federal Register Vol. 89, No. 238 Wednesday, December 11, 2024 This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Chapter I [Docket ID OCC–2023–0016] FEDERAL RESERVE SYSTEM 12 CFR Chapter II [Docket No. OP–1828] FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Chapter III RIN 3064–ZA39 Regulatory Publication and Review Under the Economic Growth and Regulatory Paperwork Reduction Act of 1996 Office of the Comptroller of the Currency (OCC), Treasury; Board of Governors of the Federal Reserve System (Board); Federal Deposit Insurance Corporation (FDIC). ACTION: Regulatory review; request for comments. AGENCY: Pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA), the OCC, Board, and FDIC (collectively, the agencies) are reviewing agency regulations to identify outdated or otherwise unnecessary regulatory requirements on insured depository institutions and their holding companies. Over approximately two years, the agencies will publish four Federal Register documents requesting comment on multiple categories of regulations. This third Federal Register document requests comment on regulations in the categories of Rules of Procedure; Safety and Soundness; and Securities. DATES: Written comments must be received no later than March 11, 2025. ADDRESSES: Comments should be directed to: lotter on DSK11XQN23PROD with PROPOSALS1 SUMMARY: VerDate Sep<11>2014 17:11 Dec 10, 2024 Jkt 265001 OCC: Commenters are encouraged to submit comments through the Federal eRulemaking Portal. Please use the title ‘‘Regulatory Publication and Review Under the Economic Growth and Regulatory Paperwork Reduction Act of 1996’’ to facilitate the organization and distribution of the comments. You may submit comments by any of the following methods: • Federal eRulemaking Portal— Regulations.gov: Go to https://regulations.gov/. Enter ‘‘Docket ID OCC–2023–0016’’ in the Search Box and click ‘‘Search.’’ Public comments can be submitted via the ‘‘Comment’’ box below the displayed document information or by clicking on the document title and then clicking 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 site, please call 1–866–498–2945 (toll free) Monday-Friday, 9 a.m.–5 p.m. eastern time (ET), or email regulationshelpdesk@gsa.gov. • Mail: Chief Counsel’s Office, Attention: 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–2023–0016’’ 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 action by the following method: • Viewing Comments Electronically— Regulations.gov: Go to https://regulations.gov/. Enter ‘‘Docket ID OCC–2023–0016’’ in the PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 Search Box and click ‘‘Search.’’ Click on the ‘‘Dockets’’ tab and then the document’s title. After clicking the document’s title, click the ‘‘Browse All 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 Comments Results’’ options on the left side of the screen. Supporting materials can be viewed by clicking on the ‘‘Browse Documents’’ tab. Click 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 checking the ‘‘Supporting & Related Material’’ checkbox. For assistance with the Regulations.gov site, please call 1–866– 498–2945 (toll free) Monday–Friday, 9 a.m.–5 p.m. ET, or email regulationshelpdesk@gsa.gov. 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. OP–1828 by any of the following methods: • Agency Website: https:// www.federalreserve.gov. Follow the instructions for submitting comments at https://www.federalreserve.gov/ generalinfo/foia/ProposedRegs.cfm. • Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments. • Email: regs.comments@ federalreserve.gov. Include the docket number 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. Public Inspection: In general, all public comments will be made available on the Board’s website at www.federalreserve.gov/generalinfo/ foia/ProposedRegs.cfm as submitted, and will not be modified to remove confidential, contact or any identifiable information. Public comments may also be viewed electronically or in paper in Room M–4365A, 2001 C Street NW, Washington, DC 20551, between 9 a.m. and 5 p.m. during Federal business weekdays. For security reasons, the Board requires that visitors make an appointment to inspect comments by calling (202) 452–3684. Upon arrival, E:\FR\FM\11DEP1.SGM 11DEP1 lotter on DSK11XQN23PROD with PROPOSALS1 99752 Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Proposed Rules visitors will be required to present valid government-issued photo identification and to submit to security screening in order to inspect and photocopy comments. For users of TTY–TRS, please call 711 from any telephone, anywhere in the United States. FDIC: Interested parties are invited to submit written comments, identified by RIN 3064–ZA39, by any of the following methods: • Agency Website: https://www.fdic. gov/resources/regulations/federalregister-publications/. Follow instructions for submitting comments on the FDIC’s website. • Email: comments@FDIC.gov. Include ‘‘EGRPRA’’ in the subject line of the message. • Mail: James P. Sheesley, Assistant Executive Secretary, Attention: Comments—RIN 3064–ZA39, 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 NW) on business days between 7 a.m. and 5 p.m. ET. Public Inspection: Comments received, including any personal information provided, may be posted without change to https://www.fdic.gov/ resources/regulations/federal-registerpublications/. Commenters should submit only information that the commenter wishes to make available publicly. The FDIC may review, redact, or refrain from posting all or any portion of any comment that it may deem to be inappropriate for publication, such as irrelevant or obscene material. The FDIC may post only a single representative example of identical or substantially identical comments, and in such cases will generally identify the number of identical or substantially identical comments represented by the posted example. All comments that have been redacted, as well as those that have not been posted, that contain comments on the merits of this document will be retained in the public comment file and will be considered as required under all applicable laws. All comments may be accessible under the Freedom of Information Act. FOR FURTHER INFORMATION CONTACT: OCC: Allison Hester-Haddad, Special Counsel, Daniel Amodeo, Counsel, or John Cooper, Counsel, Chief Counsel’s Office (202) 649–5490, Office of the Comptroller of the Currency, 400 7th Street SW, Washington, DC 20219. If you are deaf, hard of hearing, or have a speech disability, please dial 7–1–1 to access telecommunications relay services. VerDate Sep<11>2014 18:23 Dec 10, 2024 Jkt 265001 Board: Katie Ballintine, Assistant Director, (202) 452–2555, and Colton Hamming, Financial Institution Policy Analyst III, (202) 452–3932, Division of Supervision and Regulation; Mandie Aubrey, Senior Counsel, (202) 452– 2595, Division of Consumer and Community Affairs; Dafina Stewart, Deputy Associate General Counsel, (202) 452–2677, David Cohen, Counsel, (202) 452–5259, and Vivien Lee, Attorney, (202) 452–2029, Legal Division, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW, Washington, DC 20551. For users of TTY–TRS, please call 711 from any telephone, anywhere in the United States. FDIC: Karen J. Currie, Chief, Policy & Program Development Section, (202) 898–3981, Division of Risk Management Supervision; or William Piervincenzi, Supervisory Counsel, (202) 898–6957, Legal Division. I. Introduction Section 2222 of EGRPRA 1 requires that not less frequently than once every 10 years, the Federal Financial Institutions Examination Council (FFIEC) 2 and the agencies 3 conduct a review of their regulations to identify outdated or otherwise unnecessary regulatory requirements imposed on insured depository institutions. In conducting this review, the FFIEC or the agencies will (a) categorize their regulations by type and (b) at regular intervals, provide notice and solicit public comment on categories of regulations, requesting commenters to identify areas of regulations that are outdated, unnecessary, or unduly burdensome.4 1 12 U.S.C. 3311. FFIEC is an interagency body empowered to prescribe uniform principles, standards, and report forms for the Federal examination of financial institutions and to make recommendations to promote uniformity in the supervision of financial institutions. The FFIEC does not issue regulations that impose burden on financial institutions and, therefore, we have not separately captioned the FFIEC in this document. 3 The FFIEC is comprised of the OCC, Board, FDIC, National Credit Union Administration (NCUA), Consumer Financial Protection Bureau (CFPB), and State Liaison Committee. Of these, only the OCC, Board, and FDIC are statutorily required to undertake the EGRPRA review. The NCUA elected to participate in the first and second EGRPRA reviews, and the NCUA Board again has elected to participate in this review process. Consistent with its approach during the first and second EGRPRA reviews, the NCUA will separately issue documents and requests for comment on its rules. The CFPB is required to review its significant rules and publish a report of its review no later than five years after they take effect. See 12 U.S.C. 5512(d). This process is separate from the EGRPRA process. 4 Insured depository institutions are also subject to regulations that are not reviewed under the 2 The PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 EGRPRA also requires the FFIEC or the agencies to publish in the Federal Register a summary of the comments received, identifying significant issues raised and commenting on those issues. It also directs the agencies to eliminate unnecessary regulations, as appropriate. Finally, the statute requires the FFIEC to submit a report to Congress that summarizes any significant issues raised in the public comments and the relative merits of those issues. The report also must include an analysis of whether the agencies are able to address the regulatory burdens associated with such issues or whether those burdens must be addressed by legislative action. II. The EGRPRA Review’s Targeted Focus The EGRPRA regulatory review provides an opportunity for the public and the agencies to evaluate groups of related regulations and to identify opportunities for burden reduction.5 For example, the EGRPRA review may facilitate the identification of statutes and regulations that share similar goals or complementary methods where one or more agencies could eliminate the overlapping regulatory requirements. Alternatively, commenters may identify regulations or statutes that impose requirements that are no longer consistent with current business practices and may warrant revision or elimination. The EGRPRA review also provides the agencies and the public with an opportunity to consider how to reduce the impact of regulations on community banks or their holding companies. The agencies are aware of the role that these institutions play in providing consumers and businesses across the nation with essential financial services and access to credit. The agencies are especially concerned about the impact of requirements on these smaller institutions. The agencies understand that when a new regulation is issued or a current regulation amended, smaller institutions may have to devote a significant amount of their resources to determine if and how the regulation will affect them. Through the public comment process, the EGRPRA review can help the agencies identify and target EGRPRA process because they were not prescribed by the agencies. Examples include rules for which rulemaking authority was transferred to the CFPB and anti-money laundering regulations issued by the Department of the Treasury’s Financial Crimes Enforcement Network, among others. If, during the EGRPRA process, the agencies receive a comment about a regulation that is not subject to the EGRPRA review, we will forward that comment to the appropriate agency. 5 See supra note 1. E:\FR\FM\11DEP1.SGM 11DEP1 Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Proposed Rules regulatory changes to reduce impacts on those smaller institutions. Burden reduction must be compatible with consumer protection and the safety and soundness of insured depository institutions, their affiliates, and the financial system as a whole. Burden reduction also must be consistent with the agencies’ statutory mandates, many of which require the issuance of regulations. EGRPRA recognizes that effective burden reduction may require statutory changes. Accordingly, as part of this review, the agencies specifically ask the public to comment on the relationship among burden reduction, regulatory requirements, policy objectives, and statutory mandates. The agencies also seek quantitative data about the impact of rules, where available. The agencies note that they must consider regulatory burden each time an agency proposes, adopts, or amends a rule. For example, under the Paperwork Reduction Act of 1995 6 and the Regulatory Flexibility Act,7 the agencies assess each rulemaking with respect to the burdens the rule might impose. The agencies also invite the public to comment on proposed rules as required by the Administrative Procedure Act.8 III. The EGRPRA Review Process Taken together for purposes of the EGRPRA review process, the agencies’ regulations covering insured depository institutions encompass more than 100 subjects.9 Consistent with the EGRPRA statute and past practice, the agencies have grouped these regulations into the following 12 categories listed in alphabetical order: Applications and Reporting; Banking Operations; Capital; Community Reinvestment Act; Consumer Protection; 10 Directors, Officers and Employees; International Operations; Money Laundering; Powers and Activities; Rules of Procedure; Safety and Soundness; and Securities. These categories were used during the prior EGRPRA reviews. The agencies determined the categories by sorting the regulations by type and sought to have 6 44 U.S.C. 3501–3521. U.S.C. 610. 8 5 U.S.C. 551–559. 9 Consistent with EGRPRA’s focus on reducing burden on insured depository institutions, the agencies have not included their internal, organizational, or operational regulations in this review. These regulations impose minimal, if any, burden on insured depository institutions. 10 The agencies are seeking comment only on consumer protection regulations for which they retain rulemaking authority for insured depository institutions and holding companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111–203, 124 Stat. 1376 (2010) (Dodd-Frank Act). lotter on DSK11XQN23PROD with PROPOSALS1 75 VerDate Sep<11>2014 17:11 Dec 10, 2024 Jkt 265001 no category be too large or broad. These categories remain useful for the review, and the agencies have not modified the categories for purposes of this review. To carry out the EGRPRA review, the agencies plan to publish four Federal Register documents with each addressing one or more categories of rules. Each Federal Register document will have a 90-day comment period. On February 6, 2024, the agencies published the first document, addressing the following categories of regulations: Applications and Reporting; Powers and Activities; and International Operations.11 On August 1, 2024, the agencies published a second document, addressing Consumer Protection; Directors, Officers and Employees; and Money Laundering.12 Today the agencies are publishing the third document addressing the categories of Rules of Procedure; Safety and Soundness; and Securities. The agencies invite the public to identify outdated, unnecessary, or unduly burdensome regulatory requirements imposed on insured depository institutions and their holding companies in these three categories. To assist the public’s understanding of how the agencies have organized the EGRPRA review, the agencies have prepared a chart that lists the categories of regulations for which the agencies are requesting comments. The chart’s left column divides the categories into specific subject-matter areas. The headings at the top of the chart identify the types of institutions affected by the regulations. The agencies will review the comments received and determine whether further action is appropriate with respect to the regulations. The agencies will consult and coordinate with each other and expect generally to make this determination jointly, as appropriate, in the case of rules that have been issued on an interagency basis. Similarly, as appropriate, the agencies will coordinate to amend or repeal those rules on an interagency basis. For rules issued by a single agency, the issuing agency will review the comments received and independently determine whether amendments to or repeal of its rules are appropriate. Further, as part of the EGRPRA review, the agencies are holding a series of public outreach meetings to provide an opportunity for bankers, consumer and community groups, and other interested parties to present their views directly to senior management and staff 11 89 12 89 PO 00000 FR 8084. FR 62679. Frm 00003 Fmt 4702 Sfmt 4702 99753 of the agencies. More information about the outreach meetings can be found on the agencies’ EGRPRA website, https:// egrpra.ffiec.gov. IV. Request for Comments on Regulations in the Rules of Procedure, Safety and Soundness, and Securities Categories The agencies are requesting comment on regulations in the Rules of Procedure; Safety and Soundness; and Securities categories to identify outdated, unnecessary, or unduly burdensome requirements imposed on insured depository institutions and their holding companies. The agencies will solicit comment on all rules finalized by the agencies before the publication of the last EGRPRA document in the series. In addition to comments on regulations in these categories generally, the agencies are requesting comments on certain specific regulations described below within these categories issued since the last EGRPRA review. Where possible, the agencies ask commenters to cite to specific regulatory language or provisions. The agencies also welcome suggested alternative provisions or language in support of a comment, where appropriate. The agencies will consider comments submitted anonymously. Specific Issues for Commenters To Consider The agencies specifically invite comment on the following issues as they pertain to the agencies’ Rules of Procedure; Safety and Soundness; and Securities rules addressed in this document. The agencies will ask these same questions for each document issued in connection with the EGRPRA process and invite comments on these questions for the categories in the previous EGRPRA documents. • Need and purpose of the regulations. Æ Question 1: Have there been changes in the financial services industry, consumer behavior, or other circumstances that cause any regulations in these categories to be outdated, unnecessary, or unduly burdensome? If so, please identify the regulations, provide any available quantitative analyses or data, and indicate how the regulations should be amended. Æ Question 2: Do any of these regulations impose burdens not required by their underlying statutes? If so, please identify the regulations and indicate how they should be amended. • Overarching approaches/ flexibilities. E:\FR\FM\11DEP1.SGM 11DEP1 lotter on DSK11XQN23PROD with PROPOSALS1 99754 Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Proposed Rules Æ Question 3: With respect to the regulations in these categories, could an agency use a different regulatory approach to lessen the burden imposed by the regulations and achieve statutory intent? Æ Question 4: Do any of these rules impose unnecessarily inflexible requirements? If so, please identify the regulations and indicate how they should be amended. • Cumulative effects. Æ Question 5: Looking at the regulations in a category as a whole, are there any requirements that are redundant, inconsistent, or overlapping in such a way that taken together, impose an unnecessary burden that could potentially be addressed? If so, please identify those regulations, provide any available quantitative analyses or data, and indicate how the regulations should be amended. Æ Question 6: Have the agencies issued similar regulations in the same area that should be considered together as bodies of regulation, when assessing the cumulative effects on an insured depository institution or holding company? If so, please identify the regulations, why they should be considered together, and any available analyses or data for the agencies’ consideration. Æ Question 7: Could any regulations or category of regulation be streamlined or simplified to reduce unduly burdensome or duplicative regulatory requirements? • Effect on competition. Æ Question 8: Do any of the regulations in these categories create competitive disadvantages for one part of the financial services industry compared to another or for one type of insured depository institution compared to another? If so, please identify the regulations and indicate how they should be amended. • Reporting, recordkeeping, and disclosure requirements. Æ Question 9: Do any of the regulations in these categories impose outdated, unnecessary, or unduly burdensome reporting, recordkeeping, or disclosure requirements on insured depository institutions or their holding companies? Æ Question 10: Could an insured depository institution or its holding company fulfill any of these requirements through new technologies (if they are not already permitted to do so) and experience a burden reduction? If so, please identify the regulations and indicate how they should be amended. • Unique characteristics of a type of institution. VerDate Sep<11>2014 17:11 Dec 10, 2024 Jkt 265001 Æ Question 11: Do any of the regulations in these categories impose requirements that are unwarranted by the unique characteristics of a particular type of insured depository institution or holding company? If so, please identify the regulations and indicate how they should be amended. • Clarity. Æ Question 12: Are the regulations in these categories clear and easy to understand? Æ Question 13: Are there specific regulations for which clarification is needed? If so, please identify the regulations and indicate how they should be amended. • Impact to community banks and other small, insured depository institutions. Æ Question 14: Are there regulations in these categories that impose outdated, unnecessary, or unduly burdensome requirements on a substantial number of community banks, their holding companies, or other small, insured depository institutions or holding companies? Æ Question 15: Have the agencies issued regulations pursuant to a common statute that, as applied by the agencies, create redundancies or impose inconsistent requirements? Æ Question 16: Should any of these regulations issued pursuant to a common statute be amended or repealed to minimize this impact? If so, please identify the regulations and indicate how they should be amended. Æ Question 17: Have the effects of any regulations in these categories changed over time that now have a significant economic impact on a substantial number of small, insured depository institutions or holding companies? If so, please identify the regulations and indicate how they should be amended. The agencies seek information on (1) the continued need for the rule; (2) the complexity of the rule; (3) the extent to which the rule overlaps, duplicates or conflicts with other Federal rules, and, to the extent feasible, with State and local governmental rules; and (4) the degree to which technology, economic conditions, or other factors have changed in the area affected by the rule. • Scope of rules. Æ Question 18: Is the scope of each rule in these categories consistent with the intent of the underlying statute(s)? Æ Question 19: Could the agencies amend the scope of a rule to clarify its applicability or reduce the burden, while remaining faithful to statutory intent? If so, please identify the regulations and indicate how they should be amended. PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 Specific Interagency Regulations Issued Since the Last EGRPRA Review • Rules of Practice and Procedure: On December 28, 2023, the agencies along with NCUA published updated rules of practice and procedure, including both joint uniform rules and agency-specific local rules, to govern administrative proceedings.13 The updated rules are effective as of April 1, 2024. The new rules recognize the use of electronic communications in administrative hearings and make various technical and conforming changes to increase the efficiency and fairness of administrative adjudications. The rules also apply 12 CFR part 19 to Federal savings associations and remove the current administrative practice and procedurerelated rules for Federal savings associations. The agencies jointly amended the uniform rules, and the OCC, Federal Reserve, and FDIC also amended their local rules. • Appraisals for Higher-Priced Mortgage Loans Exemption Threshold: The OCC, FRB, and CFPB finalized amendments to the official interpretations for their regulations that implement section 129H of the Truth in Lending Act (TILA). Section 129H of TILA establishes special appraisal requirements for ‘‘higher-risk mortgages,’’ termed’’ higher-priced mortgage loans’’ or ‘‘HPMLs’’ in the agencies’ regulations.14 The agencies amended the regulations to adjust the related Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W) exemption threshold for certain loan types, effective January 1, 2024. The OCC joined other agencies in issuing corresponding regulations for each year between 2014 and 2022.15 • Real Estate Appraisals: The agencies adopted a final rule to amend their regulations requiring appraisals of real estate for certain transactions. The final rule increases the threshold level at or below which appraisals are not required for commercial real estate transactions from $250,000 to $500,000.16 The final rule defines a commercial real estate transaction as a real estate-related financial transaction that is not secured by a single 1-to-4 family residential property. It excludes all transactions secured by a single 1-to4 family residential property, and, thus, construction loans secured by a single 113 88 FR 89820 (Dec. 28, 2023). FR 83311 (Nov. 29, 2023). 15 87 FR 63663 (Oct. 20, 2022); 86 FR 67843 (Nov. 30, 2021); 85 FR 79385 (Dec. 10, 2020); 84 FR 58013 (Oct. 30, 2019); 83 FR 59272 (Nov. 23, 2018); 82 FR 51973 (Nov. 9, 2017); 81 FR 86250 (Nov. 30, 2016); 80 FR 73943 (Nov. 27, 2015); 79 FR 78296 (Dec. 30, 2014). 16 83 FR 15019 (April 9, 2018). 14 88 E:\FR\FM\11DEP1.SGM 11DEP1 lotter on DSK11XQN23PROD with PROPOSALS1 Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Proposed Rules to-4 family residential property are excluded. For commercial real estate transactions exempted from the appraisal requirement as a result of the revised threshold, regulated institutions must obtain an evaluation of the real property collateral that is consistent with safe and sound banking practices. • Real Estate Appraisals: The agencies adopted a final rule to amend the agencies’ regulations requiring appraisals of real estate for certain transactions. The final rule increases the threshold level at or below which appraisals are not required for residential real estate transactions from $250,000 to $400,000.17 The final rule defines a residential real estate transaction as a real estate-related financial transaction that is secured by a single 1-to-4 family residential property. For residential real estate transactions exempted from the appraisal requirement as a result of the revised threshold, regulated institutions must obtain an evaluation of the real property collateral that is consistent with safe and sound banking practices. The final rule makes a conforming change to add to the list of exempt transactions those transactions secured by residential property in rural areas that have been exempted from the agencies’ appraisal requirement pursuant to the Economic Growth, Regulatory Relief, and Consumer Protection Act. The final rule requires evaluations for these exempt transactions. The final rule also amends the agencies’ appraisal regulations to require regulated institutions to subject appraisals for federally related transactions to appropriate review for compliance with the Uniform Standards of Professional Appraisal Practice. • Net Stable Funding Ratio: The agencies adopted a final rule to implement a stable funding requirement, known as the net stable funding ratio (NSFR), for certain large banking organizations. The final rule established a quantitative metric, the NSFR, to measure the stability of the funding profile of certain large banking organizations and requires these banking organizations to maintain minimum amounts of stable funding to support their assets, commitments, and derivatives exposures over a one-year time horizon. The final rule applied to certain large U.S. depository institution holding companies, depository institutions, and U.S. intermediate holding companies of foreign banking organizations, each with total consolidated assets of $100 billion or more, together with certain depository 17 84 FR 53579 (Oct. 8, 2019). VerDate Sep<11>2014 17:11 Dec 10, 2024 Jkt 265001 institution subsidiaries (together, covered companies). The final rule also amended certain definitions in the agencies’ liquidity coverage ratio rule that are also applicable to the NSFR.18 99755 investment fund up to one year beyond the standard withdrawal period, with opportunities for further extensions, provided that certain conditions are satisfied. • Municipal Securities Dealers: In Specific OCC Regulations Issued Since March 2014, the OCC updated its the Last EGRPRA Review headquarters mailing address.24 In • National Bank and Federal Savings January 2017, the OCC codified an Association Payment System existing requirement for Federal savings Memberships: In December 2020, the associations that act as municipal OCC adopted a rule addressing national securities dealers to file certain forms bank and Federal savings association with the OCC. The OCC also made membership in payment systems.19 The minor technical changes to 12 CFR part rule includes a notice requirement and 10.25 safety and soundness reviews. • Securities Exchange Act Disclosure • Permissible Derivatives Activities Rules: In January 2017, the OCC for National Banks: In December 2020, adopted a rule designed to update the OCC adopted a rule governing certain relevant existing rules in permissible derivative activities for accordance with a review of the national banks.20 The rule delineates the EGRPRA.26 The rule treats Federal types of derivative activities that are savings associations similar to national permissible and includes notice and banks under the rule with regard to their safety and soundness requirements. periodic reporting obligations under the • Collective Investment Funds: In Exchange Act. In addition, the updates January 2017, the OCC amended 12 CFR permit the electronic filing of periodic 9.18(b)(1) to require that a national bank reporting requirements, and provide the make a copy of the investment fund ability to make technical, nonplan available to the public either at its substantive edits and clarifications. main office or on its website.21 The rule • Recordkeeping and Confirmation also permits a national bank to satisfy Requirements for Securities the requirement to provide a copy of the Transactions (National Banks): In plan to any person who requests it by January 2017, the OCC adopted a rule providing it in either written or designed to update certain relevant electronic form. The OCC amended 12 existing rules in accordance with a CFR 9.18(c)(2) to increase the asset review of the EGRPRA.27 The rule threshold for mini-funds to $1,500,000, clarifies that national banks may use a with an annual adjustment for inflation. third-party service provider for In March 2020, the OCC revised the recordkeeping and storage. The rule also OCC’s short-term investment fund rule aligns customer notification (STIF Rule) for national banks acting in requirements for national banks and a fiduciary capacity.22 The OCC Federal savings associations and allows amended the rule to add a reservation for the use of electronic of authority provision that addresses the communications. In October 2018, the rule’s limits on weighted average OCC and FDIC adopted a rule to shorten portfolio maturity, weighted average the standard settlement cycle for portfolio life maturity, and the method securities purchased or sold by national for determining those limits. In August banks.28 The rule requires banks to 2020, the OCC issued a rule to codify settle most securities transactions the standard withdrawal period for a within the number of business days collective investment fund and to followed by registered broker dealers in provide that a national bank that the United States. requires a prior notice period for • Recordkeeping and Confirmation withdrawals generally must withdraw Requirements for Securities an account within the prior notice Transactions (Federal Savings period or, if permissible under the Associations): In January 2017, the OCC collective investment fund’s written adopted a rule designed to update plan, within one year after prior notice certain relevant existing rules in was required.23 The rule also creates a accordance with a review of the limited exception that allows a national EGRPRA.29 The rule treats Federal bank, with OCC approval, to withdraw savings associations the same as an account from the collective national banks by reducing records 18 86 24 79 19 85 FR 9120 (Feb. 11, 2021). FR 83686 (Dec. 22, 2020). 20 85 FR 83686 (Dec. 22, 2020). 21 82 FR 8082 (Jan. 23, 2017). 22 85 FR 16888 (Mar. 25, 2020). 23 85 FR 49229 (Aug. 13, 2020). 25 82 PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 FR 15639 (Mar. 21, 2014). FR 8082 (Jan. 23, 2017). 26 82 FR 8082 (Jan. 23, 2017). 27 82 FR 8082 (Jan. 23, 2017). 28 83 FR 26347 (Jun. 7, 2018). 29 82 FR 8082 (Jan. 23, 2017). E:\FR\FM\11DEP1.SGM 11DEP1 99756 Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Proposed Rules maintenance and storage requirements. The rule also reduces the frequency of statements that must be sent to a customer when a Federal savings association receives remuneration from any source. In October 2018, the OCC and FDIC adopted a rule to shorten the standard settlement cycle for securities purchased or sold by Federal savings associations.30 The rule requires Federal savings associations to settle most securities transactions within the number of business days followed by registered broker dealers in the United States. • Securities Offering Disclosure Rules: In January 2017, the OCC made amendments to 12 CFR part 16 as part of the EGRPRA process to integrate Federal savings associations into 12 CFR part 16 and delete former 12 CFR part 197, which previously applied to the securities activities of Federal savings associations.31 These amendments also took provisions from former 12 CFR part 197 pertaining to electronic filings and adapted them in 12 CFR part 16 to enable electronic filings under the latter. The OCC made further technical amendments in July 2020 regarding the form and content of registration statements and requests for interpretative advice and no-objection letters.32 • Applications for Stay or Review of Disciplinary Actions Imposed by Registered Clearing Agencies: As part of the OCC’s reorganization of the 12 CFR part 19 local rules, 12 CFR 19.135, ‘‘Applications for stay or review of disciplinary actions imposed by registered clearing agencies,’’ was redesignated as 12 CFR 19.121(d). There was no change to the substance of the provision. • Securities and Borrowings: The OCC has made minor revisions regarding provisions relating to Federal savings association securities and borrowing several times. The OCC removed certain provisions in 2015 as part of the integration of national bank and Federal savings association rules.33 The OCC made technical and conforming edits in 2019 and 2020.34 • Federal Savings Association Financial Management Policies: In January 2017, as a result of the previous EGRPRA review, OCC revised its regulations for Federal savings associations for financial derivatives to clarify the rule.35 • Recovery Planning Guidelines: In 2016, the OCC published enforceable standards for insured national banks, Federal savings associations, and Federal branches of foreign banks with $50 billion or more in average total consolidated assets.36 In 2018, the OCC increased this threshold to $250 billion or more.37 In 2024, the OCC adjusted the threshold to $100 billion or more, incorporated a testing standard, and clarified the role of non-financial (operational and strategic) risk in recovery planning.38 The guidelines provide a comprehensive framework for evaluating the financial effects of severe stress that may affect a covered institution and options it may take to remain viable under such stress. The OCC also made technical changes to 12 CFR part 30 when it issued these guidelines. • Voluntary Liquidation: The OCC integrated the provisions related to national bank and Federal savings association voluntary liquidation.39 The OCC made minor updates to this regulation in January 2017,40 as part of the previous EGRPRA review, and December 2020.41 • Other Real Estate Owned: The OCC integrated its regulations for national banks and Federal savings associations.42 • Legal Lending Limits: The OCC revised 12 CFR part 32 to make technical conforming amendments to certain definitions and provisions to make 12 CFR part 32 consistent with the capital framework,43 integration of Federal savings associations into OCC regulations relating to policies and procedures,44 implementation of the current expected credit losses methodology (CECL),45 the community bank leverage ratio framework,46 and the standardized approach for counterparty credit risk (SA–CCR).47 In addition, the OCC revised 12 CFR part 32 to conform with and clarify 35 82 FR 8110 (Jan. 23, 2017). FR 66800 (Sep. 29, 2016). 37 83 FR 66607 (Dec. 27, 2018). 38 89 FR 84255 (Oct. 22, 2024). 39 80 FR 28346 (May 18, 2015). 40 82 FR 8082 (Jan. 23, 2017). 41 85 FR 80404 (Dec. 11, 2020). 42 84 FR 56369 (Oct. 22, 2019). 43 79 FR 11300 (February 28, 2014). 44 80 FR 28346 (May 18, 2015). 45 84 FR 4222 (February 14, 2019). 46 84 FR 61776 (November 13, 2019); 84 FR 69296 (December 18, 2019). 47 85 FR 4362 (January 24, 2020). 36 81 30 83 FR 26347 (Jun. 7, 2018). FR 8082 (Jan. 23, 2017). 32 85 FR 42630 (Jul. 14, 2020). 33 80 FR 28480 (May 18, 2015). In addition, the OCC issued a technical correction relating to offers and sales of securities at an office of a Federal savings association in 2015. 80 FR 79460 (Dec. 22, 2015). 34 84 FR 56376 (Oct. 22, 2019); 84 FR 64193 (Nov. 21, 2019) (amendment of effective date and correction); 84 FR 71735 (Dec. 30, 2019) (technical amendments, correction); 85 FR 42630 (Jul. 14, 2020). lotter on DSK11XQN23PROD with PROPOSALS1 31 82 VerDate Sep<11>2014 17:11 Dec 10, 2024 Jkt 265001 PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 applicability of certain limits in Call Report instructions.48 • Affiliates Transactions: As part of the previous EGRPRA review, the OCC integrated its regulations and added provisions for national banks and Federal savings association to request exemptions.49 • Federal Savings Association Financial Management Policies: In response to the last EGRPRA review, the OCC revised its regulations for Federal savings associations for financial derivatives to clarify the rule.50 Specific Board Regulations Issued Since the Last EGRPRA Review • Financial Market Utilities: The Board issued a final rule amending the requirements relating to operational risk management in the Board’s Regulation HH, which applies to certain financial market utilities (FMUs) that have been designated as systemically important (designated FMUs) by the Financial Stability Oversight Council (FSOC) under title VIII of the Dodd-Frank Act. The amendments updated, refined, and added specificity to the operational risk management requirements in Regulation HH to reflect changes in the operational risk, technology, and regulatory landscape in which designated FMUs operate. The final rule also required specific incident-notification requirements.51 • Enhanced Prudential Standards: The Board established risk-based categories for determining prudential standards for large U.S. banking organizations and foreign banking organizations, consistent with section 165 of the Dodd-Frank Act, as amended by the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), and with the Home Owners’ Loan Act. The rule amended certain prudential standards, including standards relating to liquidity, risk management, and single-counterparty credit limits, to reflect the risk profile of banking organizations under each category; applied prudential standards to certain large savings and loan holding companies using the same categories; and made corresponding changes to reporting forms.52 • Single-Counterparty Credit Limits: The Board established singlecounterparty credit limits for bank holding companies and foreign banking organizations with $250 billion or more 48 85 FR 42630 (July 14, 2020); 85 FR 61809 (October 1, 2020). 49 82 FR 8082 (Jan. 23, 2017). 50 82 FR 8110 (Jan. 23, 2017). 51 89 FR 18749 (March 15, 2024). 52 84 FR 59032 (Nov. 1, 2019). E:\FR\FM\11DEP1.SGM 11DEP1 Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Proposed Rules lotter on DSK11XQN23PROD with PROPOSALS1 in total consolidated assets, including any U.S. intermediate holding company of such a foreign banking organization with $50 billion or more in total consolidated assets, and any bank holding company identified as a global systemically important bank holding company under the Board’s capital rules. The final rule implemented section 165(e) of the Dodd-Frank Act, which requires the Board to impose limits on the amount of credit exposure that such a bank holding company or foreign banking organization can have to an unaffiliated company in order to reduce the risks arising from the company’s failure.53 • Extensions of Credit by Federal Reserve Banks: The Board revised provisions in its Regulation A regarding the establishment of the primary credit rate in a financial emergency and deleted the provisions relating to the use of credit ratings for collateral for extensions of credit under the former Term Asset-Backed Securities Loan Facility.54 • Qualified Financial Contracts: The Board issued a rule imposing certain restrictions on firms with respect to qualified financial contracts. The rule applied to global systemically important banking organization and certain subsidiaries.55 • Resolution Plans: The Board and FDIC issued a rule implementing the resolution planning requirements under Dodd Frank. The rule also established risk-based categories for determining the application of the resolution planning requirement to certain U.S. and foreign banking organizations. The final rule also extended the default resolution plan filing cycle, allowed for more focused resolution plan submissions, and improved certain aspects of the resolution planning rule.56 Specific FDIC Regulations Issued Since the Last EGRPRA Review • Resolution Plans: The FDIC issued a rule to require the submission of resolution plans by insured depository institutions (IDIs) with $100 billion or more in total assets and informational filings by IDIs with at least $50 billion but less than $100 billion in total assets. The rule modified the content and timing of full resolution submissions, as well as interim supplements to those submissions provided to the FDIC. The rule also enhanced how the credibility of full resolution submissions will be assessed, expanded expectations regarding engagement and capabilities testing, and explained expectations regarding the FDIC’s review, feedback, and enforcement of IDIs’ compliance with the rule.57 • Recordkeeping for Timely Deposit Insurance Determination: In 2019, the FDIC amended its rules in 12 CFR part 370 to clarify its requirements for recordkeeping for timely deposit insurance determination, to better align the burdens of the rule with the benefits, and to make technical corrections.58 • Recordkeeping Requirements for Qualified Financial Contracts: The FDIC amended its regulations regarding recordkeeping requirements for qualified financial contracts (QFCs) in 2017 to augment the scope of QFC records required to be maintained by an IDI that is subject to the FDIC’s recordkeeping requirements and that has total consolidated assets equal to or greater than $50 billion or is a consolidated affiliate of a member of a corporate group with one or more members of which are subject to the QFC recordkeeping requirements set forth in the regulations adopted by the Department of the Treasury (a ‘‘full scope entity’’); for all other IDIs subject to the FDIC’s QFC recordkeeping requirements, added and deleted a limited number of data requirements and made certain formatting changes with respect to the QFC recordkeeping requirements; required full scope entities to keep QFC records of certain of their subsidiaries; provided an exemption process; and included certain other changes, including changes that provided additional time for certain IDIs in a troubled condition to comply with the regulations.59 • Limited Exception for a Capped Amount of Reciprocal Deposits from Treatment as Brokered Deposits: In 2019, the FDIC amended its regulations on brokered deposits and interest rate restrictions to conform with changes to section 29 of the Federal Deposit Insurance Act made by section 202 of the EGRRCPA related to reciprocal deposits. The FDIC also made conforming amendments to the FDIC’s regulations governing deposit insurance assessments.60 • Unsafe and Unsound Banking Practices Relating to Brokered Deposits and Interest Rate Restrictions: In 2021, the FDIC revised regulations relating to the brokered deposits and interest rate 57 89 FR 56620 (July 9, 2024). FR 37020 (July 30, 2019). 59 82 FR 35584 (July 31, 2017). 60 84 FR 1346 (Feb. 4, 2019); 84 FR 15095 (April 15, 2019). 53 83 FR 38460 (Aug. 6, 2018). 54 83 FR 21167 (May 9, 2018). 55 82 FR 42882 (Sept. 12, 2017). 56 84 FR 59194 (Nov. 1, 2019). VerDate Sep<11>2014 17:11 Dec 10, 2024 58 84 Jkt 265001 PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 99757 restrictions that apply to less than well capitalized IDIs. For brokered deposits, the FDIC issued a rule to establish a new framework for analyzing certain provisions of the ‘‘deposit broker’’ definition, including ‘‘facilitating’’ and ‘‘primary purpose.’’ For the interest rate restrictions, the FDIC amended its methodology for calculating the national rate, the national rate cap, and the local market rate cap.61 • Registration of Securities Transfer Agents: The FDIC issued a rule in 2016 to amend its regulations requiring insured State nonmember banks, or subsidiaries of such banks, and insured State savings associations and subsidiaries of such State savings associations, that act as transfer agents for qualifying securities under section 12 of the Securities Exchange Act of 1934 to register with the FDIC. The rule also revised the definition of qualifying securities to reflect statutory changes to the Securities and Exchange Act of 1934.62 V. The Agencies’ Review of Regulations Under Section 610 of the Regulatory Flexibility Act (RFA) Consistent with past practice, the agencies will use the EGRPRA review to satisfy their respective obligations under section 610 of the RFA.63 To that end, for each rule that has a significant impact on a substantial number of small entities issued in the last 10 years, the agencies invite comment on (1) the continued need for the rule; (2) the complexity of the rule; (3) the extent to which the rule overlaps, duplicates or conflicts with other Federal rules, and, to the extent feasible, with State and local governmental rules; and (4) the length of time since the rule has been evaluated or the degree to which technology, economic conditions, or other factors have changed in the area affected by the rule. The purpose of the 61 86 FR 6742 (Jan. 22, 2021). FR 27295 (May 6, 2016). 63 Section 610 of the Regulatory Flexibility Act, 5 U.S.C. 610, imposes a continuing obligation on the agencies to review regulations that may have a significant economic impact upon a substantial number of small entities within 10 years after a final rulemaking is published. A subset of the rules the agencies will review under EGRPRA will also be reviewed under the section 610 review criteria. The agencies will indicate which rules are subject to section 610 review. The factors the agencies consider in evaluating a rule under 5 U.S.C. 610 are (1) the continued need for the rule; (2) the nature of complaints or comments received concerning the rule from the public; (3) the complexity of the rule; (4) the extent to which the rule overlaps, duplicates or conflicts with other Federal rules, and, to the extent feasible, with State and local governmental rules; and (5) the length of time since the rule has been evaluated or the degree to which technology, economic conditions, or other factors have changed in the area affected by the rule. 62 81 E:\FR\FM\11DEP1.SGM 11DEP1 99758 Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Proposed Rules review will be to determine whether such rules should be continued without change, or should be amended or rescinded, consistent with the stated objectives of applicable statutes, to minimize any significant economic Subject Rules of Procedure: Uniform Rules of Practice and Procedure. OCC Regulations Voluntary Liquidation of a National Bank or Federal Savings Association. FDIC Regulations 1 Resolution and Receivership Rules. Recordkeeping for Timely Deposit Insurance Determination. Recordkeeping Requirements for Qualified Financial Contracts. Restrictions on Sale of Assets by the Federal Deposit Insurance Corporation. Safety and Soundness: impact of the rules upon a substantial number of such small entities. The agencies have not identified any rules pertaining to Rules of Procedure; Safety and Soundness; and Securities that would have a significant impact on a substantial number of small entities.64 The agencies will consider public National banks State member banks State non-member banks Federal savings associations State savings associations Interagency Regulations: 12 CFR part 19 .... 12 CFR part 263 .. 12 CFR part 308 .. 12 CFR part 19 .... 12 CFR part 308 .. 12 CFR 5.48 ........ .............................. .............................. 12 CFR 5.48. 12 CFR part 360 .. 12 CFR part 360 .. 12 CFR part 360 .. 12 CFR part 360 .. 12 CFR part 360. 12 CFR part 370 .. 12 CFR part 370 .. 12 CFR part 370 .. 12 CFR part 370 .. 12 CFR part 370. 12 CFR part 371 .. 12 CFR part 371 .. 12 CFR part 371 .. 12 CFR part 371 .. 12 CFR part 371. 12 CFR part 340 .. 12 CFR part 340 .. 12 CFR part 340 .. 12 CFR part 340 .. 12 CFR part 340. 12 CFR 208.61 [Reg. H]. 12 CFR 208.50 [Reg. H]; 12 CFR part 225, subpart G [Reg. Y]. 12 CFR part 208, appx. C [Reg H]. 12 CFR 226.43; 12 CFR part 226, appx. N and O, and supp. I [Reg. Z]. 12 CFR part 326, subpart A. 12 CFR part 323 .. 12 CFR part 168 .. 12 CFR part 326, subpart A. 12 CFR part 323 12 CFR part 365, subpart A. 12 CFR part 1026 [Reg. Z]. 12 CFR 160.101 .. 12 CFR part 34, subpart G. 12 CFR part 365, subpart A. 12 CFR part 1026 [Reg. Z]. 12 CFR part 225, subpart M [Reg. Y]. 12 CFR part 244 [Reg. RR]. 12 CFR part 323, subpart B. 12 CFR part 34, subpart H. 12 CFR part 323, subpart B. 12 CFR part 373 .. 12 CFR part 43 .... 12 CFR part 373 12 CFR 337.12. 12 CFR part 329 12 CFR part 382 Interagency Regulations: Minimum Security Proce12 CFR part 21, dures. subpart A. Appraisal Standards for Fed- 12 CFR part 34, erally Related Transactions. subpart C. lotter on DSK11XQN23PROD with PROPOSALS1 comments submitted through the EGRPRA review process and agency experience to identify regulations where the agencies can reduce burdens that have a significant impact on a substantial number of small, insured depository institutions.65 12 CFR part 34, subpart C. Real Estate Lending Standards. Appraisals: Higher-Priced Mortgages. 12 CFR part 34, subpart D. 12 CFR part 34, subpart G. Appraisal Management Company Minimum Standards. 12 CFR part 34, subpart H. Credit Risk Retention ............ 12 CFR part 43 .... Frequency of Safety and Soundness Examination. 12 CFR 4.6–.7 ..... 12 CFR 208.64 [Reg. H]. 12 CFR 337.12 .... Liquidity Risk ......................... 12 CFR part 50 .... 12 CFR part 249 [Reg. WW]. 12 CFR part 329 .. 12 CFR 4.6 (See also: 12 CFR 163.170). 12 CFR part 50 .... Mandatory Contractual Requirements for Qualified Financial Contracts. 12 CFR part 47 .... 12 CFR part 252, subpart I [Reg. YY]. 12 CFR part 382 .. 12 CFR part 47 .... 64 The FDIC certified that the Unsafe and Unsound Banking Practices Relating to Brokered Deposits and Interest Rate Restrictions rule issued in 2021 would not have a significant economic effect on a substantial number of small entities, after conducting a full Final Regulatory Flexibility VerDate Sep<11>2014 21:09 Dec 10, 2024 Jkt 265001 Act analysis. Because some expected effects were hard to assess or accurately quantify, the FDIC published a small entity compliance guide. 65 The review will be consistent with the requirements of a Regulatory Flexibility Act, section 610 review. The agencies will determine whether PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 BHCs & FHCs ————— SLHCs 12 CFR part 263. 12 CFR part 225, subpart G [Reg. Y]. 12 CFR 226.43; 12 CFR part 226, appx. N and O, and supp. I [Reg. Z]. ————— 12 CFR 226.43; 12 CFR part 226, appx. N and O, and supp. I [Reg. Z]. 12 CFR part 244 [Reg. RR]. ————— 12 CFR part 244 [Reg. RR]. 12 CFR part 249 [Reg. WW]. ————— 12 CFR part 249 [Reg. WW]. 12 CFR part 252, subpart I [Reg. YY]. particular rules should be continued without change, amended, or rescinded, consistent with the objectives of applicable statutes, to minimize any significant economic impact of the rules on a substantial number of small, insured depository institutions. E:\FR\FM\11DEP1.SGM 11DEP1 Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Proposed Rules National banks State member banks State non-member banks Federal savings associations State savings associations Resolution Plans ................... 12 CFR 360.10 .... 12 CFR 360.10 .... 12 CFR 360.10 .... 12 CFR 360.10 .... 12 CFR 360.10 .... Safety and Soundness Standards. 12 CFR part 30 generally; 12 CFR part 30, appx. A. 12 CFR part 223 [Reg. W]; 12 CFR part 31. 12 CFR part 208, appx. D–1 [Reg. H]. 12 CFR part 364, appx. A. 12 CFR part 364, appx. A. 12 CFR part 223 [Reg. W]. 12 CFR part 223 [Reg. W]. 12 CFR part 30 generally; 12 CFR part 30, appx. A. 12 CFR part 223 [Reg. W]; 12 CFR part 31. 12 CFR part 30, appx. D. 12 CFR part 32 .... 12 CFR part 30, appx. E. 12 CFR part 34, subpart E. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. 12 CFR part 160 .. 12 CFR part 160. .............................. 12 CFR 226.42; 12 CFR part 226, supp. I [Reg. Z]. 12 CFR part 1026 [Reg. Z]. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. .............................. 12 CFR part 201 [Reg. A]. 12 CFR part 234 [Reg. HH]. 12 CFR part 206 [Reg. F]. .............................. 12 CFR part 201 [Reg. A]. 12 CFR part 234 [Reg. HH]. 12 CFR part 206 [Reg. F]. .............................. 12 CFR part 201 [Reg. A]. 12 CFR part 234 [Reg. HH]. 12 CFR part 206 [Reg. F]. .............................. 12 CFR part 201 [Reg. A]. 12 CFR part 234 [Reg. HH]. 12 CFR part 206 [Reg. F]. .............................. 12 CFR part 201 [Reg. A]. 12 CFR part 234 [Reg. HH]. 12 CFR part 206 [Reg. F]. .............................. .............................. .............................. .............................. .............................. .............................. 12 CFR part 363 .. 12 CFR part 363 .. 12 CFR part 363 .. 12 CFR part 363 .. 12 CFR part 363. .............................. .............................. 12 CFR 337.2. 12 CFR 337.6 ...... 12 CFR 337.6 ...... 12 CFR 337.6 ...... 12 CFR 337.6 ...... 12 CFR 337.6. 12 CFR 19.135 .... 12 CFR 208.32– 33 [Reg. H]. 12 CFR 208.31 [Reg. H]. 12 CFR 208.37 [Reg. H]. 12 CFR part 308, subpart S. 12 CFR part 341. Subject Transactions with Affiliates ... OCC Regulations: Heightened Standards Guidelines. Lending Limits ....................... Recovery Planning Guidelines. Other Real Estate Owned .... Federal Savings Association Financial Management Policies. Federal Savings Association Lending and Investment — Additional Safety and Soundness Limitations. Board Regulations: Appraisals: Appraiser Independence. Definitions related to the Financial Stability Oversight Council. Enhanced Prudential Standards Risk Committee Requirement (for certain BHCs) Standards for BHCs with consolidated assets $50 billion or more and less than $100B. Enhanced Prudential Standards Risk Committee Requirement (for certain BHCs) Standards for BHCs with consolidated assets $100 billion or more. Extensions of Credit by Federal Reserve Banks. Financial Market Utilities ....... lotter on DSK11XQN23PROD with PROPOSALS1 Limitations on Interbank Liabilities. Securities Holding Companies. Single Counterparty Credit Limit. FDIC Regulations: Annual Independent Audits and Reporting Requirements. Unsafe and Unsound Banking Practices (Standby Letters of Credit). Unsafe and Unsound Banking Practices (Brokered Deposits). Securities: Interagency Regulations: Banks as Registered Clearing Agencies. Banks as Securities Transfer Agents. Government Securities Sales Practices. VerDate Sep<11>2014 17:11 Dec 10, 2024 12 CFR 9.20 ........ 12 CFR part 13 .... Jkt 265001 PO 00000 Frm 00009 Fmt 4702 12 CFR part 30, appx. D. 12 CFR part 32 .... 12 CFR part 30, appx. E. 12 CFR part 34, subpart E. 12 CFR part 163, subpart F. E:\FR\FM\11DEP1.SGM BHCs & FHCs ————— SLHCs 12 CFR part 381; 12 CFR part 243 [Reg. QQ]. 12 CFR part 223 [Reg. W]. 12 CFR part 32. 12 CFR part 368. Sfmt 4702 99759 11DEP1 12 CFR 226.42; 12 CFR part 226, supp. I [Reg. Z]. ————— 12 CFR 226.42; 12 CFR part 226, supp. I [Reg. Z]. 12 CFR part 242 [Reg. PP]. 12 CFR part 252, subpart C [Reg. YY]. ————— 12 CFR part 238, subpart M [Reg. LL]. 12 CFR 252.33 [Reg. YY]. ————— 12 CFR 238.122 [Reg. LL]. 12 CFR part 234 [Reg. HH]. 12 CFR part 241 [Reg. OO]. 12 CFR part 252, subparts H and Q [Reg. YY]. 99760 Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / Proposed Rules Subject National banks State member banks State non-member banks Federal savings associations State savings associations Recordkeeping and Confirmation of Securities Transactions Effected by Banks. Reporting Requirements for Reported Securities Under the Securities Exchange Act of 1934. 12 CFR part 12 .... 12 CFR 208.34 [Reg. H]. 12 CFR part 344 .. 12 CFR part 151 .. 12 CFR part 344. 12 CFR part 11 .... 12 CFR 208.36 [Reg. H]. 12 CFR part 335 .. 12 CFR part 11 .... Securities Offerings .............. 12 CFR part 16 .... .............................. 12 CFR part 335 .. 12 CFR part 16 .... 12 CFR part 335; 12 CFR part 390, subpart Q; 12 CFR part 390, subpart W. 12 CFR part 335; 12 CFR part 390, subpart Q; 12 CFR part 390, subpart W. 12 CFR part 10 .... .............................. .............................. 12 CFR part 10. .............................. .............................. .............................. 12 CFR part 169 .. .............................. .............................. .............................. 12 CFR 163.5; 12 CFR part 163, subpart C. 12 CFR part 221 [Reg. U]. 12 CFR part 221 [Reg. U]. 12 CFR part 221 [Reg. U]. 12 CFR part 221 [Reg. U]. 12 CFR part 221 [Reg. U]. .............................. .............................. .............................. .............................. .............................. OCC Regulations: Municipal Securities Dealer Activities of Banks. Federal Savings Associations Proxies. Federal Savings Associations Rules on the Issuance and Sale of Institution Securities. Board Regulations: Credit by Banks and Persons Other than Brokers or Dealers for the Purpose of Purchasing or Carrying Margin Stock. Credit by Brokers and Dealers. BHCs & FHCs ————— SLHCs 12 CFR part 169. 12 CFR part 221 [Reg. U]. ————— 12 CFR part 221 [Reg. U]. 12 CFR part 220 [Reg. T]. 1 The Orderly Liquidation Authority subject was included in the chart published on Feb. 6, 2024 (89 FR 8084) but FDIC staff has further reviewed the regulations, 12 CFR part 380, and believes that these rules are not subject to EGRPRA. This subject has been removed from the chart. Michael J. Hsu, Acting Comptroller of the Currency. By order of the Board of Governors of the Federal Reserve System. Ann E. Misback, Secretary of the Board. Federal Deposit Insurance Corporation. By order of the Board of Directors. Dated at Washington, DC, on November 20, 2024. James P. Sheesley, Assistant Executive Secretary. [FR Doc. 2024–28939 Filed 12–10–24; 8:45 am] BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P DEPARTMENT OF TRANSPORTATION Office of the Secretary 14 CFR Chapter II [Docket No. DOT–OST–2024–0062] RIN 2105–AF20 Airline Passenger Rights Office of the Secretary (OST), Department of Transportation (DOT). ACTION: Advanced notice of proposed rulemaking (ANPRM). lotter on DSK11XQN23PROD with PROPOSALS1 AGENCY: The U.S. Department of Transportation (Department or DOT) seeks public comment on a rulemaking to ensure consumers experiencing SUMMARY: VerDate Sep<11>2014 17:11 Dec 10, 2024 Jkt 265001 significant flight disruptions are taken care of and protected from financial losses. Specifically, the Department is considering imposing requirements on airlines to provide affected passengers cash compensation, free rebooking, and amenities such as meals, lodging for overnight delays, and transportation to and from lodging. The Department also seeks comment on whether some protections should be provided during any type of disruption, how to determine whether a cancellation or delay is within an airline’s control, and how to ensure that passengers receive the correct information from the airline in a timely manner. Additionally, the Department solicits comments on how to ensure that the process for passengers to receive compensation and amenities is clear, simple, straightforward, and prompt, and whether to require certain aspects of the process to be automatic. Further, the Department seeks comment on whether it should require airlines to offer free rebooking on the same or partner airline to a passenger with a disability and others in the same travel party when one or more accessibility feature needed by the person with disability is unavailable. Comments should be filed by February 10, 2025. Late-filed comments will be considered to the extent practicable. DATES: PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 You may file comments identified by the docket number DOT– OST–2024–0062 by any of the following methods: • Federal eRulemaking Portal: go to https://www.regulations.gov and follow the online instructions for submitting comments. • Mail: Docket Management Facility, U.S. Department of Transportation, 1200 New Jersey Ave. SE, West Building Ground Floor, Room W12–140, Washington, DC 20590–0001. • Hand Delivery or Courier: West Building Ground Floor, Room W12–140, 1200 New Jersey Ave. SE, Washington, DC, between 9 a.m. and 5 p.m. ET, Monday through Friday, except Federal holidays. • Fax: (202) 493–2251. Instructions: You must include the agency name and docket number DOT– OST–2024–0062 or the Regulatory Identification Number (RIN 2105–AF20) for the rulemaking at the beginning of your comment. All comments received will be posted without change to https://www.regulations.gov, including any personal information provided. Privacy Act: Anyone is able to search the electronic form of all comments received in any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). For information on DOT’s compliance with ADDRESSES: E:\FR\FM\11DEP1.SGM 11DEP1

Agencies

[Federal Register Volume 89, Number 238 (Wednesday, December 11, 2024)]
[Proposed Rules]
[Pages 99751-99760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28939]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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


Federal Register / Vol. 89, No. 238 / Wednesday, December 11, 2024 / 
Proposed Rules

[[Page 99751]]



DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Chapter I

[Docket ID OCC-2023-0016]

FEDERAL RESERVE SYSTEM

12 CFR Chapter II

[Docket No. OP-1828]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Chapter III

RIN 3064-ZA39


Regulatory Publication and Review Under the Economic Growth and 
Regulatory Paperwork Reduction Act of 1996

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

ACTION: Regulatory review; request for comments.

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

SUMMARY: Pursuant to the Economic Growth and Regulatory Paperwork 
Reduction Act of 1996 (EGRPRA), the OCC, Board, and FDIC (collectively, 
the agencies) are reviewing agency regulations to identify outdated or 
otherwise unnecessary regulatory requirements on insured depository 
institutions and their holding companies. Over approximately two years, 
the agencies will publish four Federal Register documents requesting 
comment on multiple categories of regulations. This third Federal 
Register document requests comment on regulations in the categories of 
Rules of Procedure; Safety and Soundness; and Securities.

DATES: Written comments must be received no later than March 11, 2025.

ADDRESSES: Comments should be directed to:
    OCC: Commenters are encouraged to submit comments through the 
Federal eRulemaking Portal. Please use the title ``Regulatory 
Publication and Review Under the Economic Growth and Regulatory 
Paperwork Reduction Act of 1996'' to facilitate the organization and 
distribution of the comments. You may submit comments by any of the 
following methods:
     Federal eRulemaking Portal--Regulations.gov:
    Go to https://regulations.gov/. Enter ``Docket ID OCC-2023-0016'' 
in the Search Box and click ``Search.'' Public comments can be 
submitted via the ``Comment'' box below the displayed document 
information or by clicking on the document title and then clicking 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 site, please call 
1-866-498-2945 (toll free) Monday-Friday, 9 a.m.-5 p.m. eastern time 
(ET), or email [email protected].
     Mail: Chief Counsel's Office, Attention: 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-2023-0016'' 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 action by the following method:
     Viewing Comments Electronically--Regulations.gov:
    Go to https://regulations.gov/. Enter ``Docket ID OCC-2023-0016'' 
in the Search Box and click ``Search.'' Click on the ``Dockets'' tab 
and then the document's title. After clicking the document's title, 
click the ``Browse All 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 Comments Results'' options on the left side 
of the screen. Supporting materials can be viewed by clicking on the 
``Browse Documents'' tab. Click 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 checking the ``Supporting & Related Material'' 
checkbox. For assistance with the Regulations.gov site, please call 1-
866-498-2945 (toll free) 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. OP-1828 by 
any of the following methods:
     Agency Website: https://www.federalreserve.gov. Follow the 
instructions for submitting comments at https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include the 
docket number 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.
    Public Inspection: In general, all public comments will be made 
available on the Board's website at www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted, and will not be modified to remove 
confidential, contact or any identifiable information. Public comments 
may also be viewed electronically or in paper in Room M-4365A, 2001 C 
Street NW, Washington, DC 20551, between 9 a.m. and 5 p.m. during 
Federal business weekdays. For security reasons, the Board requires 
that visitors make an appointment to inspect comments by calling (202) 
452-3684. Upon arrival,

[[Page 99752]]

visitors will be required to present valid government-issued photo 
identification and to submit to security screening in order to inspect 
and photocopy comments. For users of TTY-TRS, please call 711 from any 
telephone, anywhere in the United States.
    FDIC: Interested parties are invited to submit written comments, 
identified by RIN 3064-ZA39, by any of the following methods:
     Agency Website: https://www.fdic.gov/resources/regulations/federal-register-publications/. Follow instructions for 
submitting comments on the FDIC's website.
     Email: [email protected]. Include ``EGRPRA'' in the 
subject line of the message.
     Mail: James P. Sheesley, Assistant Executive Secretary, 
Attention: Comments--RIN 3064-ZA39, 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 NW) on business days between 7 a.m. and 5 p.m. ET.
    Public Inspection: Comments received, including any personal 
information provided, may be posted without change to https://www.fdic.gov/resources/regulations/federal-register-publications/. 
Commenters should submit only information that the commenter wishes to 
make available publicly. The FDIC may review, redact, or refrain from 
posting all or any portion of any comment that it may deem to be 
inappropriate for publication, such as irrelevant or obscene material. 
The FDIC may post only a single representative example of identical or 
substantially identical comments, and in such cases will generally 
identify the number of identical or substantially identical comments 
represented by the posted example. All comments that have been 
redacted, as well as those that have not been posted, that contain 
comments on the merits of this document will be retained in the public 
comment file and will be considered as required under all applicable 
laws. All comments may be accessible under the Freedom of Information 
Act.

FOR FURTHER INFORMATION CONTACT: 
    OCC: Allison Hester-Haddad, Special Counsel, Daniel Amodeo, 
Counsel, or John Cooper, Counsel, Chief Counsel's Office (202) 649-
5490, Office of the Comptroller of the Currency, 400 7th Street SW, 
Washington, DC 20219. If you are deaf, hard of hearing, or have a 
speech disability, please dial 7-1-1 to access telecommunications relay 
services.
    Board: Katie Ballintine, Assistant Director, (202) 452-2555, and 
Colton Hamming, Financial Institution Policy Analyst III, (202) 452-
3932, Division of Supervision and Regulation; Mandie Aubrey, Senior 
Counsel, (202) 452-2595, Division of Consumer and Community Affairs; 
Dafina Stewart, Deputy Associate General Counsel, (202) 452-2677, David 
Cohen, Counsel, (202) 452-5259, and Vivien Lee, Attorney, (202) 452-
2029, Legal Division, Board of Governors of the Federal Reserve System, 
20th Street and Constitution Avenue NW, Washington, DC 20551. For users 
of TTY-TRS, please call 711 from any telephone, anywhere in the United 
States.
    FDIC: Karen J. Currie, Chief, Policy & Program Development Section, 
(202) 898-3981, Division of Risk Management Supervision; or William 
Piervincenzi, Supervisory Counsel, (202) 898-6957, Legal Division.

I. Introduction

    Section 2222 of EGRPRA \1\ requires that not less frequently than 
once every 10 years, the Federal Financial Institutions Examination 
Council (FFIEC) \2\ and the agencies \3\ conduct a review of their 
regulations to identify outdated or otherwise unnecessary regulatory 
requirements imposed on insured depository institutions. In conducting 
this review, the FFIEC or the agencies will (a) categorize their 
regulations by type and (b) at regular intervals, provide notice and 
solicit public comment on categories of regulations, requesting 
commenters to identify areas of regulations that are outdated, 
unnecessary, or unduly burdensome.\4\
---------------------------------------------------------------------------

    \1\ 12 U.S.C. 3311.
    \2\ The FFIEC is an interagency body empowered to prescribe 
uniform principles, standards, and report forms for the Federal 
examination of financial institutions and to make recommendations to 
promote uniformity in the supervision of financial institutions. The 
FFIEC does not issue regulations that impose burden on financial 
institutions and, therefore, we have not separately captioned the 
FFIEC in this document.
    \3\ The FFIEC is comprised of the OCC, Board, FDIC, National 
Credit Union Administration (NCUA), Consumer Financial Protection 
Bureau (CFPB), and State Liaison Committee. Of these, only the OCC, 
Board, and FDIC are statutorily required to undertake the EGRPRA 
review. The NCUA elected to participate in the first and second 
EGRPRA reviews, and the NCUA Board again has elected to participate 
in this review process.
    Consistent with its approach during the first and second EGRPRA 
reviews, the NCUA will separately issue documents and requests for 
comment on its rules. The CFPB is required to review its significant 
rules and publish a report of its review no later than five years 
after they take effect. See 12 U.S.C. 5512(d). This process is 
separate from the EGRPRA process.
    \4\ Insured depository institutions are also subject to 
regulations that are not reviewed under the EGRPRA process because 
they were not prescribed by the agencies. Examples include rules for 
which rulemaking authority was transferred to the CFPB and anti-
money laundering regulations issued by the Department of the 
Treasury's Financial Crimes Enforcement Network, among others. If, 
during the EGRPRA process, the agencies receive a comment about a 
regulation that is not subject to the EGRPRA review, we will forward 
that comment to the appropriate agency.
---------------------------------------------------------------------------

    EGRPRA also requires the FFIEC or the agencies to publish in the 
Federal Register a summary of the comments received, identifying 
significant issues raised and commenting on those issues. It also 
directs the agencies to eliminate unnecessary regulations, as 
appropriate. Finally, the statute requires the FFIEC to submit a report 
to Congress that summarizes any significant issues raised in the public 
comments and the relative merits of those issues. The report also must 
include an analysis of whether the agencies are able to address the 
regulatory burdens associated with such issues or whether those burdens 
must be addressed by legislative action.

II. The EGRPRA Review's Targeted Focus

    The EGRPRA regulatory review provides an opportunity for the public 
and the agencies to evaluate groups of related regulations and to 
identify opportunities for burden reduction.\5\ For example, the EGRPRA 
review may facilitate the identification of statutes and regulations 
that share similar goals or complementary methods where one or more 
agencies could eliminate the overlapping regulatory requirements. 
Alternatively, commenters may identify regulations or statutes that 
impose requirements that are no longer consistent with current business 
practices and may warrant revision or elimination.
---------------------------------------------------------------------------

    \5\ See supra note 1.
---------------------------------------------------------------------------

    The EGRPRA review also provides the agencies and the public with an 
opportunity to consider how to reduce the impact of regulations on 
community banks or their holding companies. The agencies are aware of 
the role that these institutions play in providing consumers and 
businesses across the nation with essential financial services and 
access to credit. The agencies are especially concerned about the 
impact of requirements on these smaller institutions. The agencies 
understand that when a new regulation is issued or a current regulation 
amended, smaller institutions may have to devote a significant amount 
of their resources to determine if and how the regulation will affect 
them. Through the public comment process, the EGRPRA review can help 
the agencies identify and target

[[Page 99753]]

regulatory changes to reduce impacts on those smaller institutions.
    Burden reduction must be compatible with consumer protection and 
the safety and soundness of insured depository institutions, their 
affiliates, and the financial system as a whole. Burden reduction also 
must be consistent with the agencies' statutory mandates, many of which 
require the issuance of regulations. EGRPRA recognizes that effective 
burden reduction may require statutory changes. Accordingly, as part of 
this review, the agencies specifically ask the public to comment on the 
relationship among burden reduction, regulatory requirements, policy 
objectives, and statutory mandates. The agencies also seek quantitative 
data about the impact of rules, where available.
    The agencies note that they must consider regulatory burden each 
time an agency proposes, adopts, or amends a rule. For example, under 
the Paperwork Reduction Act of 1995 \6\ and the Regulatory Flexibility 
Act,\7\ the agencies assess each rulemaking with respect to the burdens 
the rule might impose. The agencies also invite the public to comment 
on proposed rules as required by the Administrative Procedure Act.\8\
---------------------------------------------------------------------------

    \6\ 44 U.S.C. 3501-3521.
    \7\ 5 U.S.C. 610.
    \8\ 5 U.S.C. 551-559.
---------------------------------------------------------------------------

III. The EGRPRA Review Process

    Taken together for purposes of the EGRPRA review process, the 
agencies' regulations covering insured depository institutions 
encompass more than 100 subjects.\9\ Consistent with the EGRPRA statute 
and past practice, the agencies have grouped these regulations into the 
following 12 categories listed in alphabetical order: Applications and 
Reporting; Banking Operations; Capital; Community Reinvestment Act; 
Consumer Protection; \10\ Directors, Officers and Employees; 
International Operations; Money Laundering; Powers and Activities; 
Rules of Procedure; Safety and Soundness; and Securities. These 
categories were used during the prior EGRPRA reviews. The agencies 
determined the categories by sorting the regulations by type and sought 
to have no category be too large or broad. These categories remain 
useful for the review, and the agencies have not modified the 
categories for purposes of this review.
---------------------------------------------------------------------------

    \9\ Consistent with EGRPRA's focus on reducing burden on insured 
depository institutions, the agencies have not included their 
internal, organizational, or operational regulations in this review. 
These regulations impose minimal, if any, burden on insured 
depository institutions.
    \10\ The agencies are seeking comment only on consumer 
protection regulations for which they retain rulemaking authority 
for insured depository institutions and holding companies under the 
Dodd-Frank Wall Street Reform and Consumer Protection Act, Public 
Law 111-203, 124 Stat. 1376 (2010) (Dodd-Frank Act).
---------------------------------------------------------------------------

    To carry out the EGRPRA review, the agencies plan to publish four 
Federal Register documents with each addressing one or more categories 
of rules. Each Federal Register document will have a 90-day comment 
period. On February 6, 2024, the agencies published the first document, 
addressing the following categories of regulations: Applications and 
Reporting; Powers and Activities; and International Operations.\11\ On 
August 1, 2024, the agencies published a second document, addressing 
Consumer Protection; Directors, Officers and Employees; and Money 
Laundering.\12\ Today the agencies are publishing the third document 
addressing the categories of Rules of Procedure; Safety and Soundness; 
and Securities. The agencies invite the public to identify outdated, 
unnecessary, or unduly burdensome regulatory requirements imposed on 
insured depository institutions and their holding companies in these 
three categories.
---------------------------------------------------------------------------

    \11\ 89 FR 8084.
    \12\ 89 FR 62679.
---------------------------------------------------------------------------

    To assist the public's understanding of how the agencies have 
organized the EGRPRA review, the agencies have prepared a chart that 
lists the categories of regulations for which the agencies are 
requesting comments. The chart's left column divides the categories 
into specific subject-matter areas. The headings at the top of the 
chart identify the types of institutions affected by the regulations.
    The agencies will review the comments received and determine 
whether further action is appropriate with respect to the regulations. 
The agencies will consult and coordinate with each other and expect 
generally to make this determination jointly, as appropriate, in the 
case of rules that have been issued on an interagency basis. Similarly, 
as appropriate, the agencies will coordinate to amend or repeal those 
rules on an interagency basis. For rules issued by a single agency, the 
issuing agency will review the comments received and independently 
determine whether amendments to or repeal of its rules are appropriate.
    Further, as part of the EGRPRA review, the agencies are holding a 
series of public outreach meetings to provide an opportunity for 
bankers, consumer and community groups, and other interested parties to 
present their views directly to senior management and staff of the 
agencies. More information about the outreach meetings can be found on 
the agencies' EGRPRA website, https://egrpra.ffiec.gov.

IV. Request for Comments on Regulations in the Rules of Procedure, 
Safety and Soundness, and Securities Categories

    The agencies are requesting comment on regulations in the Rules of 
Procedure; Safety and Soundness; and Securities categories to identify 
outdated, unnecessary, or unduly burdensome requirements imposed on 
insured depository institutions and their holding companies. The 
agencies will solicit comment on all rules finalized by the agencies 
before the publication of the last EGRPRA document in the series. In 
addition to comments on regulations in these categories generally, the 
agencies are requesting comments on certain specific regulations 
described below within these categories issued since the last EGRPRA 
review. Where possible, the agencies ask commenters to cite to specific 
regulatory language or provisions. The agencies also welcome suggested 
alternative provisions or language in support of a comment, where 
appropriate. The agencies will consider comments submitted anonymously.

Specific Issues for Commenters To Consider

    The agencies specifically invite comment on the following issues as 
they pertain to the agencies' Rules of Procedure; Safety and Soundness; 
and Securities rules addressed in this document. The agencies will ask 
these same questions for each document issued in connection with the 
EGRPRA process and invite comments on these questions for the 
categories in the previous EGRPRA documents.
     Need and purpose of the regulations.
    [cir] Question 1: Have there been changes in the financial services 
industry, consumer behavior, or other circumstances that cause any 
regulations in these categories to be outdated, unnecessary, or unduly 
burdensome? If so, please identify the regulations, provide any 
available quantitative analyses or data, and indicate how the 
regulations should be amended.
    [cir] Question 2: Do any of these regulations impose burdens not 
required by their underlying statutes? If so, please identify the 
regulations and indicate how they should be amended.
     Overarching approaches/flexibilities.

[[Page 99754]]

    [cir] Question 3: With respect to the regulations in these 
categories, could an agency use a different regulatory approach to 
lessen the burden imposed by the regulations and achieve statutory 
intent?
    [cir] Question 4: Do any of these rules impose unnecessarily 
inflexible requirements? If so, please identify the regulations and 
indicate how they should be amended.
     Cumulative effects.
    [cir] Question 5: Looking at the regulations in a category as a 
whole, are there any requirements that are redundant, inconsistent, or 
overlapping in such a way that taken together, impose an unnecessary 
burden that could potentially be addressed? If so, please identify 
those regulations, provide any available quantitative analyses or data, 
and indicate how the regulations should be amended.
    [cir] Question 6: Have the agencies issued similar regulations in 
the same area that should be considered together as bodies of 
regulation, when assessing the cumulative effects on an insured 
depository institution or holding company? If so, please identify the 
regulations, why they should be considered together, and any available 
analyses or data for the agencies' consideration.
    [cir] Question 7: Could any regulations or category of regulation 
be streamlined or simplified to reduce unduly burdensome or duplicative 
regulatory requirements?
     Effect on competition.
    [cir] Question 8: Do any of the regulations in these categories 
create competitive disadvantages for one part of the financial services 
industry compared to another or for one type of insured depository 
institution compared to another? If so, please identify the regulations 
and indicate how they should be amended.
     Reporting, recordkeeping, and disclosure requirements.
    [cir] Question 9: Do any of the regulations in these categories 
impose outdated, unnecessary, or unduly burdensome reporting, 
recordkeeping, or disclosure requirements on insured depository 
institutions or their holding companies?
    [cir] Question 10: Could an insured depository institution or its 
holding company fulfill any of these requirements through new 
technologies (if they are not already permitted to do so) and 
experience a burden reduction? If so, please identify the regulations 
and indicate how they should be amended.
     Unique characteristics of a type of institution.
    [cir] Question 11: Do any of the regulations in these categories 
impose requirements that are unwarranted by the unique characteristics 
of a particular type of insured depository institution or holding 
company? If so, please identify the regulations and indicate how they 
should be amended.
     Clarity.
    [cir] Question 12: Are the regulations in these categories clear 
and easy to understand?
    [cir] Question 13: Are there specific regulations for which 
clarification is needed? If so, please identify the regulations and 
indicate how they should be amended.
     Impact to community banks and other small, insured 
depository institutions.
    [cir] Question 14: Are there regulations in these categories that 
impose outdated, unnecessary, or unduly burdensome requirements on a 
substantial number of community banks, their holding companies, or 
other small, insured depository institutions or holding companies?
    [cir] Question 15: Have the agencies issued regulations pursuant to 
a common statute that, as applied by the agencies, create redundancies 
or impose inconsistent requirements?
    [cir] Question 16: Should any of these regulations issued pursuant 
to a common statute be amended or repealed to minimize this impact? If 
so, please identify the regulations and indicate how they should be 
amended.
    [cir] Question 17: Have the effects of any regulations in these 
categories changed over time that now have a significant economic 
impact on a substantial number of small, insured depository 
institutions or holding companies? If so, please identify the 
regulations and indicate how they should be amended. The agencies seek 
information on (1) the continued need for the rule; (2) the complexity 
of the rule; (3) the extent to which the rule overlaps, duplicates or 
conflicts with other Federal rules, and, to the extent feasible, with 
State and local governmental rules; and (4) the degree to which 
technology, economic conditions, or other factors have changed in the 
area affected by the rule.
     Scope of rules.
    [cir] Question 18: Is the scope of each rule in these categories 
consistent with the intent of the underlying statute(s)?
    [cir] Question 19: Could the agencies amend the scope of a rule to 
clarify its applicability or reduce the burden, while remaining 
faithful to statutory intent? If so, please identify the regulations 
and indicate how they should be amended.

Specific Interagency Regulations Issued Since the Last EGRPRA Review

     Rules of Practice and Procedure: On December 28, 2023, the 
agencies along with NCUA published updated rules of practice and 
procedure, including both joint uniform rules and agency-specific local 
rules, to govern administrative proceedings.\13\ The updated rules are 
effective as of April 1, 2024. The new rules recognize the use of 
electronic communications in administrative hearings and make various 
technical and conforming changes to increase the efficiency and 
fairness of administrative adjudications. The rules also apply 12 CFR 
part 19 to Federal savings associations and remove the current 
administrative practice and procedure-related rules for Federal savings 
associations. The agencies jointly amended the uniform rules, and the 
OCC, Federal Reserve, and FDIC also amended their local rules.
---------------------------------------------------------------------------

    \13\ 88 FR 89820 (Dec. 28, 2023).
---------------------------------------------------------------------------

     Appraisals for Higher-Priced Mortgage Loans Exemption 
Threshold: The OCC, FRB, and CFPB finalized amendments to the official 
interpretations for their regulations that implement section 129H of 
the Truth in Lending Act (TILA). Section 129H of TILA establishes 
special appraisal requirements for ``higher-risk mortgages,'' termed'' 
higher-priced mortgage loans'' or ``HPMLs'' in the agencies' 
regulations.\14\ The agencies amended the regulations to adjust the 
related Consumer Price Index for Urban Wage Earners and Clerical 
Workers (CPI-W) exemption threshold for certain loan types, effective 
January 1, 2024. The OCC joined other agencies in issuing corresponding 
regulations for each year between 2014 and 2022.\15\
---------------------------------------------------------------------------

    \14\ 88 FR 83311 (Nov. 29, 2023).
    \15\ 87 FR 63663 (Oct. 20, 2022); 86 FR 67843 (Nov. 30, 2021); 
85 FR 79385 (Dec. 10, 2020); 84 FR 58013 (Oct. 30, 2019); 83 FR 
59272 (Nov. 23, 2018); 82 FR 51973 (Nov. 9, 2017); 81 FR 86250 (Nov. 
30, 2016); 80 FR 73943 (Nov. 27, 2015); 79 FR 78296 (Dec. 30, 2014).
---------------------------------------------------------------------------

     Real Estate Appraisals: The agencies adopted a final rule 
to amend their regulations requiring appraisals of real estate for 
certain transactions. The final rule increases the threshold level at 
or below which appraisals are not required for commercial real estate 
transactions from $250,000 to $500,000.\16\ The final rule defines a 
commercial real estate transaction as a real estate-related financial 
transaction that is not secured by a single 1-to-4 family residential 
property. It excludes all transactions secured by a single 1-to-4 
family residential property, and, thus, construction loans secured by a 
single 1-

[[Page 99755]]

to-4 family residential property are excluded. For commercial real 
estate transactions exempted from the appraisal requirement as a result 
of the revised threshold, regulated institutions must obtain an 
evaluation of the real property collateral that is consistent with safe 
and sound banking practices.
---------------------------------------------------------------------------

    \16\ 83 FR 15019 (April 9, 2018).
---------------------------------------------------------------------------

     Real Estate Appraisals: The agencies adopted a final rule 
to amend the agencies' regulations requiring appraisals of real estate 
for certain transactions. The final rule increases the threshold level 
at or below which appraisals are not required for residential real 
estate transactions from $250,000 to $400,000.\17\ The final rule 
defines a residential real estate transaction as a real estate-related 
financial transaction that is secured by a single 1-to-4 family 
residential property. For residential real estate transactions exempted 
from the appraisal requirement as a result of the revised threshold, 
regulated institutions must obtain an evaluation of the real property 
collateral that is consistent with safe and sound banking practices. 
The final rule makes a conforming change to add to the list of exempt 
transactions those transactions secured by residential property in 
rural areas that have been exempted from the agencies' appraisal 
requirement pursuant to the Economic Growth, Regulatory Relief, and 
Consumer Protection Act. The final rule requires evaluations for these 
exempt transactions. The final rule also amends the agencies' appraisal 
regulations to require regulated institutions to subject appraisals for 
federally related transactions to appropriate review for compliance 
with the Uniform Standards of Professional Appraisal Practice.
---------------------------------------------------------------------------

    \17\ 84 FR 53579 (Oct. 8, 2019).
---------------------------------------------------------------------------

     Net Stable Funding Ratio: The agencies adopted a final 
rule to implement a stable funding requirement, known as the net stable 
funding ratio (NSFR), for certain large banking organizations. The 
final rule established a quantitative metric, the NSFR, to measure the 
stability of the funding profile of certain large banking organizations 
and requires these banking organizations to maintain minimum amounts of 
stable funding to support their assets, commitments, and derivatives 
exposures over a one-year time horizon. The final rule applied to 
certain large U.S. depository institution holding companies, depository 
institutions, and U.S. intermediate holding companies of foreign 
banking organizations, each with total consolidated assets of $100 
billion or more, together with certain depository institution 
subsidiaries (together, covered companies). The final rule also amended 
certain definitions in the agencies' liquidity coverage ratio rule that 
are also applicable to the NSFR.\18\
---------------------------------------------------------------------------

    \18\ 86 FR 9120 (Feb. 11, 2021).
---------------------------------------------------------------------------

Specific OCC Regulations Issued Since the Last EGRPRA Review

     National Bank and Federal Savings Association Payment 
System Memberships: In December 2020, the OCC adopted a rule addressing 
national bank and Federal savings association membership in payment 
systems.\19\ The rule includes a notice requirement and safety and 
soundness reviews.
---------------------------------------------------------------------------

    \19\ 85 FR 83686 (Dec. 22, 2020).
---------------------------------------------------------------------------

     Permissible Derivatives Activities for National Banks: In 
December 2020, the OCC adopted a rule governing permissible derivative 
activities for national banks.\20\ The rule delineates the types of 
derivative activities that are permissible and includes notice and 
safety and soundness requirements.
---------------------------------------------------------------------------

    \20\ 85 FR 83686 (Dec. 22, 2020).
---------------------------------------------------------------------------

     Collective Investment Funds: In January 2017, the OCC 
amended 12 CFR 9.18(b)(1) to require that a national bank make a copy 
of the investment fund plan available to the public either at its main 
office or on its website.\21\ The rule also permits a national bank to 
satisfy the requirement to provide a copy of the plan to any person who 
requests it by providing it in either written or electronic form. The 
OCC amended 12 CFR 9.18(c)(2) to increase the asset threshold for mini-
funds to $1,500,000, with an annual adjustment for inflation. In March 
2020, the OCC revised the OCC's short-term investment fund rule (STIF 
Rule) for national banks acting in a fiduciary capacity.\22\ The OCC 
amended the rule to add a reservation of authority provision that 
addresses the rule's limits on weighted average portfolio maturity, 
weighted average portfolio life maturity, and the method for 
determining those limits. In August 2020, the OCC issued a rule to 
codify the standard withdrawal period for a collective investment fund 
and to provide that a national bank that requires a prior notice period 
for withdrawals generally must withdraw an account within the prior 
notice period or, if permissible under the collective investment fund's 
written plan, within one year after prior notice was required.\23\ The 
rule also creates a limited exception that allows a national bank, with 
OCC approval, to withdraw an account from the collective investment 
fund up to one year beyond the standard withdrawal period, with 
opportunities for further extensions, provided that certain conditions 
are satisfied.
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    \21\ 82 FR 8082 (Jan. 23, 2017).
    \22\ 85 FR 16888 (Mar. 25, 2020).
    \23\ 85 FR 49229 (Aug. 13, 2020).
---------------------------------------------------------------------------

     Municipal Securities Dealers: In March 2014, the OCC 
updated its headquarters mailing address.\24\ In January 2017, the OCC 
codified an existing requirement for Federal savings associations that 
act as municipal securities dealers to file certain forms with the OCC. 
The OCC also made minor technical changes to 12 CFR part 10.\25\
---------------------------------------------------------------------------

    \24\ 79 FR 15639 (Mar. 21, 2014).
    \25\ 82 FR 8082 (Jan. 23, 2017).
---------------------------------------------------------------------------

     Securities Exchange Act Disclosure Rules: In January 2017, 
the OCC adopted a rule designed to update certain relevant existing 
rules in accordance with a review of the EGRPRA.\26\ The rule treats 
Federal savings associations similar to national banks under the rule 
with regard to their periodic reporting obligations under the Exchange 
Act. In addition, the updates permit the electronic filing of periodic 
reporting requirements, and provide the ability to make technical, non-
substantive edits and clarifications.
---------------------------------------------------------------------------

    \26\ 82 FR 8082 (Jan. 23, 2017).
---------------------------------------------------------------------------

     Recordkeeping and Confirmation Requirements for Securities 
Transactions (National Banks): In January 2017, the OCC adopted a rule 
designed to update certain relevant existing rules in accordance with a 
review of the EGRPRA.\27\ The rule clarifies that national banks may 
use a third-party service provider for recordkeeping and storage. The 
rule also aligns customer notification requirements for national banks 
and Federal savings associations and allows for the use of electronic 
communications. In October 2018, the OCC and FDIC adopted a rule to 
shorten the standard settlement cycle for securities purchased or sold 
by national banks.\28\ The rule requires banks to settle most 
securities transactions within the number of business days followed by 
registered broker dealers in the United States.
---------------------------------------------------------------------------

    \27\ 82 FR 8082 (Jan. 23, 2017).
    \28\ 83 FR 26347 (Jun. 7, 2018).
---------------------------------------------------------------------------

     Recordkeeping and Confirmation Requirements for Securities 
Transactions (Federal Savings Associations): In January 2017, the OCC 
adopted a rule designed to update certain relevant existing rules in 
accordance with a review of the EGRPRA.\29\ The rule treats Federal 
savings associations the same as national banks by reducing records

[[Page 99756]]

maintenance and storage requirements. The rule also reduces the 
frequency of statements that must be sent to a customer when a Federal 
savings association receives remuneration from any source. In October 
2018, the OCC and FDIC adopted a rule to shorten the standard 
settlement cycle for securities purchased or sold by Federal savings 
associations.\30\ The rule requires Federal savings associations to 
settle most securities transactions within the number of business days 
followed by registered broker dealers in the United States.
---------------------------------------------------------------------------

    \29\ 82 FR 8082 (Jan. 23, 2017).
    \30\ 83 FR 26347 (Jun. 7, 2018).
---------------------------------------------------------------------------

     Securities Offering Disclosure Rules: In January 2017, the 
OCC made amendments to 12 CFR part 16 as part of the EGRPRA process to 
integrate Federal savings associations into 12 CFR part 16 and delete 
former 12 CFR part 197, which previously applied to the securities 
activities of Federal savings associations.\31\ These amendments also 
took provisions from former 12 CFR part 197 pertaining to electronic 
filings and adapted them in 12 CFR part 16 to enable electronic filings 
under the latter. The OCC made further technical amendments in July 
2020 regarding the form and content of registration statements and 
requests for interpretative advice and no-objection letters.\32\
---------------------------------------------------------------------------

    \31\ 82 FR 8082 (Jan. 23, 2017).
    \32\ 85 FR 42630 (Jul. 14, 2020).
---------------------------------------------------------------------------

     Applications for Stay or Review of Disciplinary Actions 
Imposed by Registered Clearing Agencies: As part of the OCC's 
reorganization of the 12 CFR part 19 local rules, 12 CFR 19.135, 
``Applications for stay or review of disciplinary actions imposed by 
registered clearing agencies,'' was redesignated as 12 CFR 19.121(d). 
There was no change to the substance of the provision.
     Securities and Borrowings: The OCC has made minor 
revisions regarding provisions relating to Federal savings association 
securities and borrowing several times. The OCC removed certain 
provisions in 2015 as part of the integration of national bank and 
Federal savings association rules.\33\ The OCC made technical and 
conforming edits in 2019 and 2020.\34\
---------------------------------------------------------------------------

    \33\ 80 FR 28480 (May 18, 2015). In addition, the OCC issued a 
technical correction relating to offers and sales of securities at 
an office of a Federal savings association in 2015. 80 FR 79460 
(Dec. 22, 2015).
    \34\ 84 FR 56376 (Oct. 22, 2019); 84 FR 64193 (Nov. 21, 2019) 
(amendment of effective date and correction); 84 FR 71735 (Dec. 30, 
2019) (technical amendments, correction); 85 FR 42630 (Jul. 14, 
2020).
---------------------------------------------------------------------------

     Federal Savings Association Financial Management Policies: 
In January 2017, as a result of the previous EGRPRA review, OCC revised 
its regulations for Federal savings associations for financial 
derivatives to clarify the rule.\35\
---------------------------------------------------------------------------

    \35\ 82 FR 8110 (Jan. 23, 2017).
---------------------------------------------------------------------------

     Recovery Planning Guidelines: In 2016, the OCC published 
enforceable standards for insured national banks, Federal savings 
associations, and Federal branches of foreign banks with $50 billion or 
more in average total consolidated assets.\36\ In 2018, the OCC 
increased this threshold to $250 billion or more.\37\ In 2024, the OCC 
adjusted the threshold to $100 billion or more, incorporated a testing 
standard, and clarified the role of non-financial (operational and 
strategic) risk in recovery planning.\38\ The guidelines provide a 
comprehensive framework for evaluating the financial effects of severe 
stress that may affect a covered institution and options it may take to 
remain viable under such stress. The OCC also made technical changes to 
12 CFR part 30 when it issued these guidelines.
---------------------------------------------------------------------------

    \36\ 81 FR 66800 (Sep. 29, 2016).
    \37\ 83 FR 66607 (Dec. 27, 2018).
    \38\ 89 FR 84255 (Oct. 22, 2024).
---------------------------------------------------------------------------

     Voluntary Liquidation: The OCC integrated the provisions 
related to national bank and Federal savings association voluntary 
liquidation.\39\ The OCC made minor updates to this regulation in 
January 2017,\40\ as part of the previous EGRPRA review, and December 
2020.\41\
---------------------------------------------------------------------------

    \39\ 80 FR 28346 (May 18, 2015).
    \40\ 82 FR 8082 (Jan. 23, 2017).
    \41\ 85 FR 80404 (Dec. 11, 2020).
---------------------------------------------------------------------------

     Other Real Estate Owned: The OCC integrated its 
regulations for national banks and Federal savings associations.\42\
---------------------------------------------------------------------------

    \42\ 84 FR 56369 (Oct. 22, 2019).
---------------------------------------------------------------------------

     Legal Lending Limits: The OCC revised 12 CFR part 32 to 
make technical conforming amendments to certain definitions and 
provisions to make 12 CFR part 32 consistent with the capital 
framework,\43\ integration of Federal savings associations into OCC 
regulations relating to policies and procedures,\44\ implementation of 
the current expected credit losses methodology (CECL),\45\ the 
community bank leverage ratio framework,\46\ and the standardized 
approach for counterparty credit risk (SA-CCR).\47\ In addition, the 
OCC revised 12 CFR part 32 to conform with and clarify applicability of 
certain limits in Call Report instructions.\48\
---------------------------------------------------------------------------

    \43\ 79 FR 11300 (February 28, 2014).
    \44\ 80 FR 28346 (May 18, 2015).
    \45\ 84 FR 4222 (February 14, 2019).
    \46\ 84 FR 61776 (November 13, 2019); 84 FR 69296 (December 18, 
2019).
    \47\ 85 FR 4362 (January 24, 2020).
    \48\ 85 FR 42630 (July 14, 2020); 85 FR 61809 (October 1, 2020).
---------------------------------------------------------------------------

     Affiliates Transactions: As part of the previous EGRPRA 
review, the OCC integrated its regulations and added provisions for 
national banks and Federal savings association to request 
exemptions.\49\
---------------------------------------------------------------------------

    \49\ 82 FR 8082 (Jan. 23, 2017).
---------------------------------------------------------------------------

     Federal Savings Association Financial Management Policies: 
In response to the last EGRPRA review, the OCC revised its regulations 
for Federal savings associations for financial derivatives to clarify 
the rule.\50\
---------------------------------------------------------------------------

    \50\ 82 FR 8110 (Jan. 23, 2017).
---------------------------------------------------------------------------

Specific Board Regulations Issued Since the Last EGRPRA Review

     Financial Market Utilities: The Board issued a final rule 
amending the requirements relating to operational risk management in 
the Board's Regulation HH, which applies to certain financial market 
utilities (FMUs) that have been designated as systemically important 
(designated FMUs) by the Financial Stability Oversight Council (FSOC) 
under title VIII of the Dodd-Frank Act. The amendments updated, 
refined, and added specificity to the operational risk management 
requirements in Regulation HH to reflect changes in the operational 
risk, technology, and regulatory landscape in which designated FMUs 
operate. The final rule also required specific incident-notification 
requirements.\51\
---------------------------------------------------------------------------

    \51\ 89 FR 18749 (March 15, 2024).
---------------------------------------------------------------------------

     Enhanced Prudential Standards: The Board established risk-
based categories for determining prudential standards for large U.S. 
banking organizations and foreign banking organizations, consistent 
with section 165 of the Dodd-Frank Act, as amended by the Economic 
Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), and 
with the Home Owners' Loan Act. The rule amended certain prudential 
standards, including standards relating to liquidity, risk management, 
and single-counterparty credit limits, to reflect the risk profile of 
banking organizations under each category; applied prudential standards 
to certain large savings and loan holding companies using the same 
categories; and made corresponding changes to reporting forms.\52\
---------------------------------------------------------------------------

    \52\ 84 FR 59032 (Nov. 1, 2019).
---------------------------------------------------------------------------

     Single-Counterparty Credit Limits: The Board established 
single-counterparty credit limits for bank holding companies and 
foreign banking organizations with $250 billion or more

[[Page 99757]]

in total consolidated assets, including any U.S. intermediate holding 
company of such a foreign banking organization with $50 billion or more 
in total consolidated assets, and any bank holding company identified 
as a global systemically important bank holding company under the 
Board's capital rules. The final rule implemented section 165(e) of the 
Dodd-Frank Act, which requires the Board to impose limits on the amount 
of credit exposure that such a bank holding company or foreign banking 
organization can have to an unaffiliated company in order to reduce the 
risks arising from the company's failure.\53\
---------------------------------------------------------------------------

    \53\ 83 FR 38460 (Aug. 6, 2018).
---------------------------------------------------------------------------

     Extensions of Credit by Federal Reserve Banks: The Board 
revised provisions in its Regulation A regarding the establishment of 
the primary credit rate in a financial emergency and deleted the 
provisions relating to the use of credit ratings for collateral for 
extensions of credit under the former Term Asset-Backed Securities Loan 
Facility.\54\
---------------------------------------------------------------------------

    \54\ 83 FR 21167 (May 9, 2018).
---------------------------------------------------------------------------

     Qualified Financial Contracts: The Board issued a rule 
imposing certain restrictions on firms with respect to qualified 
financial contracts. The rule applied to global systemically important 
banking organization and certain subsidiaries.\55\
---------------------------------------------------------------------------

    \55\ 82 FR 42882 (Sept. 12, 2017).
---------------------------------------------------------------------------

     Resolution Plans: The Board and FDIC issued a rule 
implementing the resolution planning requirements under Dodd Frank. The 
rule also established risk-based categories for determining the 
application of the resolution planning requirement to certain U.S. and 
foreign banking organizations. The final rule also extended the default 
resolution plan filing cycle, allowed for more focused resolution plan 
submissions, and improved certain aspects of the resolution planning 
rule.\56\
---------------------------------------------------------------------------

    \56\ 84 FR 59194 (Nov. 1, 2019).
---------------------------------------------------------------------------

Specific FDIC Regulations Issued Since the Last EGRPRA Review

     Resolution Plans: The FDIC issued a rule to require the 
submission of resolution plans by insured depository institutions 
(IDIs) with $100 billion or more in total assets and informational 
filings by IDIs with at least $50 billion but less than $100 billion in 
total assets. The rule modified the content and timing of full 
resolution submissions, as well as interim supplements to those 
submissions provided to the FDIC. The rule also enhanced how the 
credibility of full resolution submissions will be assessed, expanded 
expectations regarding engagement and capabilities testing, and 
explained expectations regarding the FDIC's review, feedback, and 
enforcement of IDIs' compliance with the rule.\57\
---------------------------------------------------------------------------

    \57\ 89 FR 56620 (July 9, 2024).
---------------------------------------------------------------------------

     Recordkeeping for Timely Deposit Insurance Determination: 
In 2019, the FDIC amended its rules in 12 CFR part 370 to clarify its 
requirements for recordkeeping for timely deposit insurance 
determination, to better align the burdens of the rule with the 
benefits, and to make technical corrections.\58\
---------------------------------------------------------------------------

    \58\ 84 FR 37020 (July 30, 2019).
---------------------------------------------------------------------------

     Recordkeeping Requirements for Qualified Financial 
Contracts: The FDIC amended its regulations regarding recordkeeping 
requirements for qualified financial contracts (QFCs) in 2017 to 
augment the scope of QFC records required to be maintained by an IDI 
that is subject to the FDIC's recordkeeping requirements and that has 
total consolidated assets equal to or greater than $50 billion or is a 
consolidated affiliate of a member of a corporate group with one or 
more members of which are subject to the QFC recordkeeping requirements 
set forth in the regulations adopted by the Department of the Treasury 
(a ``full scope entity''); for all other IDIs subject to the FDIC's QFC 
recordkeeping requirements, added and deleted a limited number of data 
requirements and made certain formatting changes with respect to the 
QFC recordkeeping requirements; required full scope entities to keep 
QFC records of certain of their subsidiaries; provided an exemption 
process; and included certain other changes, including changes that 
provided additional time for certain IDIs in a troubled condition to 
comply with the regulations.\59\
---------------------------------------------------------------------------

    \59\ 82 FR 35584 (July 31, 2017).
---------------------------------------------------------------------------

     Limited Exception for a Capped Amount of Reciprocal 
Deposits from Treatment as Brokered Deposits: In 2019, the FDIC amended 
its regulations on brokered deposits and interest rate restrictions to 
conform with changes to section 29 of the Federal Deposit Insurance Act 
made by section 202 of the EGRRCPA related to reciprocal deposits. The 
FDIC also made conforming amendments to the FDIC's regulations 
governing deposit insurance assessments.\60\
---------------------------------------------------------------------------

    \60\ 84 FR 1346 (Feb. 4, 2019); 84 FR 15095 (April 15, 2019).
---------------------------------------------------------------------------

     Unsafe and Unsound Banking Practices Relating to Brokered 
Deposits and Interest Rate Restrictions: In 2021, the FDIC revised 
regulations relating to the brokered deposits and interest rate 
restrictions that apply to less than well capitalized IDIs. For 
brokered deposits, the FDIC issued a rule to establish a new framework 
for analyzing certain provisions of the ``deposit broker'' definition, 
including ``facilitating'' and ``primary purpose.'' For the interest 
rate restrictions, the FDIC amended its methodology for calculating the 
national rate, the national rate cap, and the local market rate 
cap.\61\
---------------------------------------------------------------------------

    \61\ 86 FR 6742 (Jan. 22, 2021).
---------------------------------------------------------------------------

     Registration of Securities Transfer Agents: The FDIC 
issued a rule in 2016 to amend its regulations requiring insured State 
nonmember banks, or subsidiaries of such banks, and insured State 
savings associations and subsidiaries of such State savings 
associations, that act as transfer agents for qualifying securities 
under section 12 of the Securities Exchange Act of 1934 to register 
with the FDIC. The rule also revised the definition of qualifying 
securities to reflect statutory changes to the Securities and Exchange 
Act of 1934.\62\
---------------------------------------------------------------------------

    \62\ 81 FR 27295 (May 6, 2016).
---------------------------------------------------------------------------

V. The Agencies' Review of Regulations Under Section 610 of the 
Regulatory Flexibility Act (RFA)

    Consistent with past practice, the agencies will use the EGRPRA 
review to satisfy their respective obligations under section 610 of the 
RFA.\63\ To that end, for each rule that has a significant impact on a 
substantial number of small entities issued in the last 10 years, the 
agencies invite comment on (1) the continued need for the rule; (2) the 
complexity of the rule; (3) the extent to which the rule overlaps, 
duplicates or conflicts with other Federal rules, and, to the extent 
feasible, with State and local governmental rules; and (4) the length 
of time since the rule has been evaluated or the degree to which 
technology, economic conditions, or other factors have changed in the 
area affected by the rule. The purpose of the

[[Page 99758]]

review will be to determine whether such rules should be continued 
without change, or should be amended or rescinded, consistent with the 
stated objectives of applicable statutes, to minimize any significant 
economic impact of the rules upon a substantial number of such small 
entities.
---------------------------------------------------------------------------

    \63\ Section 610 of the Regulatory Flexibility Act, 5 U.S.C. 
610, imposes a continuing obligation on the agencies to review 
regulations that may have a significant economic impact upon a 
substantial number of small entities within 10 years after a final 
rulemaking is published. A subset of the rules the agencies will 
review under EGRPRA will also be reviewed under the section 610 
review criteria. The agencies will indicate which rules are subject 
to section 610 review. The factors the agencies consider in 
evaluating a rule under 5 U.S.C. 610 are (1) the continued need for 
the rule; (2) the nature of complaints or comments received 
concerning the rule from the public; (3) the complexity of the rule; 
(4) the extent to which the rule overlaps, duplicates or conflicts 
with other Federal rules, and, to the extent feasible, with State 
and local governmental rules; and (5) the length of time since the 
rule has been evaluated or the degree to which technology, economic 
conditions, or other factors have changed in the area affected by 
the rule.
---------------------------------------------------------------------------

    The agencies have not identified any rules pertaining to Rules of 
Procedure; Safety and Soundness; and Securities that would have a 
significant impact on a substantial number of small entities.\64\ The 
agencies will consider public comments submitted through the EGRPRA 
review process and agency experience to identify regulations where the 
agencies can reduce burdens that have a significant impact on a 
substantial number of small, insured depository institutions.\65\
---------------------------------------------------------------------------

    \64\ The FDIC certified that the Unsafe and Unsound Banking 
Practices Relating to Brokered Deposits and Interest Rate 
Restrictions rule issued in 2021 would not have a significant 
economic effect on a substantial number of small entities, after 
conducting a full Final Regulatory Flexibility Act analysis. Because 
some expected effects were hard to assess or accurately quantify, 
the FDIC published a small entity compliance guide.
    \65\ The review will be consistent with the requirements of a 
Regulatory Flexibility Act, section 610 review. The agencies will 
determine whether particular rules should be continued without 
change, amended, or rescinded, consistent with the objectives of 
applicable statutes, to minimize any significant economic impact of 
the rules on a substantial number of small, insured depository 
institutions.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           State non-member     Federal savings      State savings    BHCs & FHCs  -- --
             Subject                National banks    State member banks         banks           associations        associations       -- -- --  SLHCs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rules of Procedure:               Interagency
                                   Regulations:
        Uniform Rules of          12 CFR part 19....  12 CFR part 263...  12 CFR part 308...  12 CFR part 19....  12 CFR part 308...  12 CFR part 263.
         Practice and Procedure.
    OCC Regulations
        Voluntary Liquidation of  12 CFR 5.48.......  ..................  ..................  12 CFR 5.48.......
         a National Bank or
         Federal Savings
         Association.
    FDIC Regulations \1\
        Resolution and            12 CFR part 360...  12 CFR part 360...  12 CFR part 360...  12 CFR part 360...  12 CFR part 360...
         Receivership Rules.
        Recordkeeping for Timely  12 CFR part 370...  12 CFR part 370...  12 CFR part 370...  12 CFR part 370...  12 CFR part 370...
         Deposit Insurance
         Determination.
        Recordkeeping             12 CFR part 371...  12 CFR part 371...  12 CFR part 371...  12 CFR part 371...  12 CFR part 371...
         Requirements for
         Qualified Financial
         Contracts.
        Restrictions on Sale of   12 CFR part 340...  12 CFR part 340...  12 CFR part 340...  12 CFR part 340...  12 CFR part 340...
         Assets by the Federal
         Deposit Insurance
         Corporation.
Safety and Soundness:             Interagency
                                   Regulations:
        Minimum Security          12 CFR part 21,     12 CFR 208.61       12 CFR part 326,    12 CFR part 168...  12 CFR part 326,
         Procedures.               subpart A.          [Reg. H].           subpart A.                              subpart A.
        Appraisal Standards for   12 CFR part 34,     12 CFR 208.50       12 CFR part 323...  12 CFR part 34,     12 CFR part 323     12 CFR part 225,
         Federally Related         subpart C.          [Reg. H]; 12 CFR                        subpart C.                              subpart G [Reg.
         Transactions.                                 part 225, subpart                                                               Y].
                                                       G [Reg. Y].
        Real Estate Lending       12 CFR part 34,     12 CFR part 208,    12 CFR part 365,    12 CFR 160.101....  12 CFR part 365,
         Standards.                subpart D.          appx. C [Reg H].    subpart A.                              subpart A.
        Appraisals: Higher-       12 CFR part 34,     12 CFR 226.43; 12   12 CFR part 1026    12 CFR part 34,     12 CFR part 1026    12 CFR 226.43; 12
         Priced Mortgages.         subpart G.          CFR part 226,       [Reg. Z].           subpart G.          [Reg. Z].           CFR part 226,
                                                       appx. N and O,                                                                  appx. N and O,
                                                       and supp. I [Reg.                                                               and supp. I [Reg.
                                                       Z].                                                                             Z].
                                                                                                                                      -- -- -- -- --
                                                                                                                                      12 CFR 226.43; 12
                                                                                                                                       CFR part 226,
                                                                                                                                       appx. N and O,
                                                                                                                                       and supp. I [Reg.
                                                                                                                                       Z].
        Appraisal Management      12 CFR part 34,     12 CFR part 225,    12 CFR part 323,    12 CFR part 34,     12 CFR part 323,
         Company Minimum           subpart H.          subpart M [Reg.     subpart B.          subpart H.          subpart B.
         Standards.                                    Y].
        Credit Risk Retention...  12 CFR part 43....  12 CFR part 244     12 CFR part 373...  12 CFR part 43....  12 CFR part 373     12 CFR part 244
                                                       [Reg. RR].                                                                      [Reg. RR].
                                                                                                                                      -- -- -- -- --
                                                                                                                                      12 CFR part 244
                                                                                                                                       [Reg. RR].
        Frequency of Safety and   12 CFR 4.6-.7.....  12 CFR 208.64       12 CFR 337.12.....  12 CFR 4.6          12 CFR 337.12.....
         Soundness Examination.                        [Reg. H].                              (See also: 12 CFR
                                                                                               163.170).
        Liquidity Risk..........  12 CFR part 50....  12 CFR part 249     12 CFR part 329...  12 CFR part 50....  12 CFR part 329     12 CFR part 249
                                                       [Reg. WW].                                                                      [Reg. WW].
                                                                                                                                      -- -- -- -- --
                                                                                                                                      12 CFR part 249
                                                                                                                                       [Reg. WW].
        Mandatory Contractual     12 CFR part 47....  12 CFR part 252,    12 CFR part 382...  12 CFR part 47....  12 CFR part 382     12 CFR part 252,
         Requirements for                              subpart I [Reg.                                                                 subpart I [Reg.
         Qualified Financial                           YY].                                                                            YY].
         Contracts.

[[Page 99759]]

 
        Resolution Plans........  12 CFR 360.10.....  12 CFR 360.10.....  12 CFR 360.10.....  12 CFR 360.10.....  12 CFR 360.10.....  12 CFR part 381;
                                                                                                                                       12 CFR part 243
                                                                                                                                       [Reg. QQ].
        Safety and Soundness      12 CFR part 30      12 CFR part 208,    12 CFR part 364,    12 CFR part 30      12 CFR part 364,
         Standards.                generally; 12 CFR   appx. D-1 [Reg.     appx. A.            generally; 12 CFR   appx. A.
                                   part 30, appx. A.   H].                                     part 30, appx. A.
        Transactions with         12 CFR part 223     12 CFR part 223     12 CFR part 223     12 CFR part 223     12 CFR part 223
         Affiliates.               [Reg. W]; 12 CFR    [Reg. W].           [Reg. W].           [Reg. W]; 12 CFR    [Reg. W].
                                   part 31.                                                    part 31.
    OCC Regulations:............
        Heightened Standards      12 CFR part 30,     ..................  ..................  12 CFR part 30,
         Guidelines.               appx. D.                                                    appx. D.
        Lending Limits..........  12 CFR part 32....  ..................  ..................  12 CFR part 32....  12 CFR part 32....
        Recovery Planning         12 CFR part 30,     ..................  ..................  12 CFR part 30,
         Guidelines.               appx. E.                                                    appx. E.
        Other Real Estate Owned.  12 CFR part 34,     ..................  ..................  12 CFR part 34,
                                   subpart E.                                                  subpart E.
        Federal Savings           ..................  ..................  ..................  12 CFR part 163,
         Association Financial                                                                 subpart F.
         Management Policies.
        Federal Savings           ..................  ..................  ..................  12 CFR part 160...  12 CFR part 160...
         Association Lending and
         Investment --
         Additional Safety and
         Soundness Limitations.
    Board Regulations:..........
        Appraisals: Appraiser     ..................  12 CFR 226.42; 12   12 CFR part 1026    ..................  ..................  12 CFR 226.42; 12
         Independence.                                 CFR part 226,       [Reg. Z].                                                   CFR part 226,
                                                       supp. I [Reg. Z].                                                               supp. I [Reg. Z].
                                                                                                                                      -- -- -- -- --
                                                                                                                                      12 CFR 226.42; 12
                                                                                                                                       CFR part 226,
                                                                                                                                       supp. I [Reg. Z].
        Definitions related to    ..................  ..................  ..................  ..................  ..................  12 CFR part 242
         the Financial Stability                                                                                                       [Reg. PP].
         Oversight Council.
        Enhanced Prudential       ..................  ..................  ..................  ..................  ..................  12 CFR part 252,
         Standards Risk                                                                                                                subpart C [Reg.
         Committee Requirement                                                                                                         YY].
         (for certain BHCs)                                                                                                           -- -- -- -- --
         Standards for BHCs with                                                                                                      12 CFR part 238,
         consolidated assets $50                                                                                                       subpart M [Reg.
         billion or more and                                                                                                           LL].
         less than $100B.
        Enhanced Prudential       ..................  ..................  ..................  ..................  ..................  12 CFR 252.33
         Standards Risk                                                                                                                [Reg. YY].
         Committee Requirement                                                                                                        -- -- -- -- --
         (for certain BHCs)                                                                                                           12 CFR 238.122
         Standards for BHCs with                                                                                                       [Reg. LL].
         consolidated assets
         $100 billion or more.
        Extensions of Credit by   12 CFR part 201     12 CFR part 201     12 CFR part 201     12 CFR part 201     12 CFR part 201
         Federal Reserve Banks.    [Reg. A].           [Reg. A].           [Reg. A].           [Reg. A].           [Reg. A].
        Financial Market          12 CFR part 234     12 CFR part 234     12 CFR part 234     12 CFR part 234     12 CFR part 234     12 CFR part 234
         Utilities.                [Reg. HH].          [Reg. HH].          [Reg. HH].          [Reg. HH].          [Reg. HH].          [Reg. HH].
        Limitations on Interbank  12 CFR part 206     12 CFR part 206     12 CFR part 206     12 CFR part 206     12 CFR part 206
         Liabilities.              [Reg. F].           [Reg. F].           [Reg. F].           [Reg. F].           [Reg. F].
        Securities Holding        ..................  ..................  ..................  ..................  ..................  12 CFR part 241
         Companies.                                                                                                                    [Reg. OO].
        Single Counterparty       ..................  ..................  ..................  ..................  ..................  12 CFR part 252,
         Credit Limit.                                                                                                                 subparts H and Q
                                                                                                                                       [Reg. YY].
    FDIC Regulations:
        Annual Independent        12 CFR part 363...  12 CFR part 363...  12 CFR part 363...  12 CFR part 363...  12 CFR part 363...
         Audits and Reporting
         Requirements.
        Unsafe and Unsound        ..................  ..................  12 CFR 337.2......
         Banking Practices
         (Standby Letters of
         Credit).
Unsafe and Unsound Banking        12 CFR 337.6......  12 CFR 337.6......  12 CFR 337.6......  12 CFR 337.6......  12 CFR 337.6......
 Practices (Brokered Deposits).
Securities:
    Interagency Regulations:
        Banks as Registered       12 CFR 19.135.....  12 CFR 208.32-33    12 CFR part 308,
         Clearing Agencies.                            [Reg. H].           subpart S.
        Banks as Securities       12 CFR 9.20.......  12 CFR 208.31       12 CFR part 341...
         Transfer Agents.                              [Reg. H].
        Government Securities     12 CFR part 13....  12 CFR 208.37       12 CFR part 368...
         Sales Practices.                              [Reg. H].

[[Page 99760]]

 
        Recordkeeping and         12 CFR part 12....  12 CFR 208.34       12 CFR part 344...  12 CFR part 151...  12 CFR part 344...
         Confirmation of                               [Reg. H].
         Securities Transactions
         Effected by Banks.
        Reporting Requirements    12 CFR part 11....  12 CFR 208.36       12 CFR part 335...  12 CFR part 11....  12 CFR part 335;
         for Reported Securities                       [Reg. H].                                                   12 CFR part 390,
         Under the Securities                                                                                      subpart Q; 12 CFR
         Exchange Act of 1934.                                                                                     part 390, subpart
                                                                                                                   W.
        Securities Offerings....  12 CFR part 16....  ..................  12 CFR part 335...  12 CFR part 16....  12 CFR part 335;
                                                                                                                   12 CFR part 390,
                                                                                                                   subpart Q; 12 CFR
                                                                                                                   part 390, subpart
                                                                                                                   W.
    OCC Regulations:
        Municipal Securities      12 CFR part 10....  ..................  ..................  12 CFR part 10....
         Dealer Activities of
         Banks.
        Federal Savings           ..................  ..................  ..................  12 CFR part 169...  12 CFR part 169...
         Associations Proxies.
        Federal Savings           ..................  ..................  ..................  12 CFR 163.5; 12
         Associations Rules on                                                                 CFR part 163,
         the Issuance and Sale                                                                 subpart C.
         of Institution
         Securities.
    Board Regulations:
        Credit by Banks and       12 CFR part 221     12 CFR part 221     12 CFR part 221     12 CFR part 221     12 CFR part 221     12 CFR part 221
         Persons Other than        [Reg. U].           [Reg. U].           [Reg. U].           [Reg. U].           [Reg. U].           [Reg. U].
         Brokers or Dealers for                                                                                                       -- -- -- -- --
         the Purpose of                                                                                                               12 CFR part 221
         Purchasing or Carrying                                                                                                        [Reg. U].
         Margin Stock.
        Credit by Brokers and     ..................  ..................  ..................  ..................  ..................  12 CFR part 220
         Dealers.                                                                                                                      [Reg. T].
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The Orderly Liquidation Authority subject was included in the chart published on Feb. 6, 2024 (89 FR 8084) but FDIC staff has further reviewed the
  regulations, 12 CFR part 380, and believes that these rules are not subject to EGRPRA. This subject has been removed from the chart.


Michael J. Hsu,
Acting Comptroller of the Currency.
    By order of the Board of Governors of the Federal Reserve 
System.

Ann E. Misback,
Secretary of the Board.

Federal Deposit Insurance Corporation.

    By order of the Board of Directors.
    Dated at Washington, DC, on November 20, 2024.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2024-28939 Filed 12-10-24; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P

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