[Federal Register Volume 83, Number 168 (Wednesday, August 29, 2018)]
[Rules and Regulations]
[Pages 43961-43965]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-18685]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 83, No. 168 / Wednesday, August 29, 2018 /
Rules and Regulations
[[Page 43961]]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 4
[Docket ID OCC-2018-0014]
RIN 1557-AE37
FEDERAL RESERVE SYSTEM
12 CFR Parts 208 and 211
[Docket No. R-1615]
RIN 7100-AF09
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Parts 337 and 347
RIN 3064-AE76
Expanded Examination Cycle for Certain Small Insured Depository
Institutions and U.S. Branches and Agencies of Foreign Banks
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury;
Board of Governors of the Federal Reserve System (Board); and Federal
Deposit Insurance Corporation (FDIC).
ACTION: Joint interim final rules and request for comments.
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SUMMARY: The OCC, Board, and FDIC (collectively, the agencies) are
jointly issuing and requesting public comment on interim final rules to
implement section 210 of the Economic Growth, Regulatory Relief, and
Consumer Protection Act (Economic Growth Act), which was enacted on May
24, 2018. Section 210 of the Economic Growth Act amends section 10(d)
of the Federal Deposit Insurance Act (FDI Act) to permit the agencies
to examine qualifying insured depository institutions (IDIs) with under
$3 billion in total assets not less than once during each 18-month
period. Prior to enactment of the Economic Growth Act, qualifying IDIs
with under $1 billion in total assets were eligible for an 18-month on-
site examination cycle. The interim final rules generally would allow
qualifying IDIs with under $3 billion in total assets to benefit from
the extended 18-month examination schedule. In addition, the interim
final rules make parallel changes to the agencies' regulations
governing the on-site examination cycle for U.S. branches and agencies
of foreign banks, consistent with the International Banking Act of 1978
(IBA).
DATES: These interim final rules are effective on August 29, 2018.
Comments on the rules must be received by October 29, 2018.
ADDRESSES:
OCC: You may submit comments to the OCC by any of the methods set
forth below. Commenters are encouraged to submit comments by the
Federal eRulemaking Portal or email, if possible. Please use the title
``Expanded Examination Cycle for Certain Small Insured Depository
Institutions and U.S. Branches and Agencies of Foreign Banks'' 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
http://www.regulations.gov. Enter ``Docket ID OCC-2018-0014'' in the
Search Box and click ``Search.'' Click on ``Comment Now'' to submit
public comments.
Click on the ``Help'' tab on the Regulations.gov home page
to get information on using Regulations.gov, including instructions for
submitting public comments.
Email: [email protected].
Mail: Legislative and Regulatory Activities Division,
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.
Fax: (571) 465-4326.
Instructions: You must include ``OCC'' as the agency name and
``Docket ID OCC-2018-0014'' 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 that you provide, 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 enclose any
information in your comment or supporting materials that you consider
confidential or inappropriate for public disclosure.
You may review comments and other related materials that pertain to
this rulemaking action by any of the following methods:
Viewing Comments Electronically: Go to http://www.regulations.gov. Enter ``Docket ID OCC-2018-0014'' in the Search
box and click ``Search.'' Click on ``Open Docket Folder'' on the right
side of the screen. Comments and supporting materials can be viewed and
filtered by clicking on ``View all documents and comments in this
docket'' and then using the filtering tools on the left side of the
screen.
Click on the ``Help'' tab on the Regulations.gov home page
to get information on using Regulations.gov. The docket may be viewed
after the close of the comment period in the same manner as during the
comment period.
Viewing Comments Personally: You may personally inspect
comments at the OCC, 400 7th Street SW, Washington, DC. For security
reasons, the OCC requires visitors to make an appointment to inspect
comments. You may do so by calling (202) 649-6700 or, for persons who
are deaf or hearing impaired, TTY, (202) 649-5597. Upon arrival,
visitors will be required to present a valid government-issued photo
identification and to submit to security screening in order to inspect
comments.
Board: You may submit comments, identified by Docket No. R-1615 and
RIN 7100-AF09, by any of the following methods:
Agency Website: http://www.federalreserve.gov. Follow the
instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
Email: [email protected]. Include docket
number and RIN in the subject line of the message.
FAX: (202) 452-3819 or (202) 452-3102.
Mail: Ann E. Misback, Secretary, Board of Governors of the
Federal
[[Page 43962]]
Reserve System, 20th Street and Constitution Avenue NW, Washington, DC
20551.
All public comments are available from the Board's website at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons or to remove sensitive personally
identifiable information at the commenter's request. Public comments
may also be viewed electronically or in paper form in Room 3515, 1801 K
Street NW, Washington, DC 20006 between 9:00 a.m. and 5:00 p.m. on
weekdays.
FDIC: You may submit comments, identified by RIN 3064-AE76, by any
of the following methods:
Agency Website: http://www.FDIC.gov/regulations/laws/Federal/. Follow the instructions for submitting comments on the Agency
website.
Email: [email protected]. Include the RIN 3064-AE76 in the
subject line of the message.
Mail: Robert E. Feldman, Executive Secretary, Attention:
Comments/Legal ESS, Federal Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
Hand Delivery/Courier: Comments may be hand-delivered to
the guard station at the rear of the 550 17th Street NW, Building
(located on F Street) on business days between 7:00 a.m. and 5:00 p.m.
Instructions: Comments submitted must include ``FDIC'' and ``RIN
3064-AE76.'' Comments received will be posted without change to http://www.FDIC.gov/regulations/laws/Federal/, including any personal
information provided.
FOR FURTHER INFORMATION CONTACT:
OCC: Enice Thomas, Senior Advisor to Senior Deputy Comptroller,
Midsize and Community Bank Supervision, (202) 649-5420; and Deborah
Katz, Assistant Director, Melissa J. Lisenbee, Senior Attorney, or
Christopher Rafferty, Attorney, Legislative and Regulatory Activities
Division, (202) 649-5490; for persons who are deaf or hearing impaired,
TTY, (202) 649-5597.
Board: Division of Supervision and Regulation--Richard Naylor,
Associate Director, (202) 728-5854; Jonathan Rono, Manager, (202) 721-
4568; Assetou Traore, Supervisory Financial Analyst, (202) 974-7066;
Virginia Gibbs, Manager, (202) 452-2521; or Alexander Kobulsky,
Supervisory Financial Analyst, (202) 452-2031; and Legal Division--
Laurie Schaffer, Associate General Counsel, (202) 452-2277; Mary
Watkins, Attorney, (202) 452-3722; or Alyssa O'Connor, Attorney, (202)
452-3886.
FDIC: Policy Branch Division of Risk Management and Supervision--
Thomas F. Lyons, Chief, Policy and Program Development, (202) 898-6850,
[email protected]; Karen J. Currie, Senior Examination Specialist, (202)
898-3981, Policy and Program Development, Division of Risk Management
Supervision; Legal Division--Suzanne J. Dawley, Counsel, (202) 898-
6509.
SUPPLEMENTARY INFORMATION:
I. Background
Enacted on May 24, 2018, section 210 of the Economic Growth Act \1\
amended section 10(d) of the FDI Act \2\ to permit the agencies to
examine qualifying IDIs (generally those IDIs that are well capitalized
and well managed) with under $3 billion in total assets not less than
once during each 18-month period, rather than not less than once during
each 12-month period. Prior to the enactment of the Economic Growth
Act, qualifying IDIs with under $1 billion in total assets were
eligible for an 18-month on-site examination cycle.\3\
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\1\ Public Law 115-174, 132 Stat. 1296 (2018).
\2\ 12 U.S.C. 1820(d).
\3\ See section 83001 of the Fixing America's Surface
Transportation Act (the FAST) Act, enacted on December 4, 2015.
Public Law 114-94, 129 Stat. 1312 (permitting the agencies to
examine qualifying IDIs with under $1 billion in total assets not
less than once during each 18-month period). The agencies published
interim final rules implementing the FAST Act amendments in February
2016, and final rules in December 2016. See 81 FR 10069 (Feb. 29,
2016) and 81 FR 90949 (Dec. 16. 2016), respectively, codified at 12
CFR 4.6 and 4.7 (OCC), 12 CFR 208.64 and 211.26 (Board), 12 CFR
337.12 and 347.211 (FDIC).
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More specifically, the agencies are issuing interim final rules to
implement the Economic Growth Act's amendments to sections 10(d)(4) and
10(d)(10) of the FDI Act \4\ that allow qualifying IDIs with under $3
billion in total assets to benefit from the extended 18-month
examination schedule. In addition, the interim final rules make
parallel changes to the agencies' regulations governing the on-site
examination cycle for U.S. branches and agencies of foreign banks,
consistent with the IBA.\5\
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\4\ 12 U.S.C. 1820(d)(4) and 1820(d)(10).
\5\ 12 U.S.C. 3105(c)(1)(C).
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Section 10(d)(1) of the FDI Act \6\ generally requires the
appropriate Federal banking agency for an IDI \7\ to conduct a full-
scope, on-site examination of an IDI at least once during each 12-month
period. With the enactment of section 210 of the Economic Growth Act,
section 10(d)(4) of the FDI Act authorizes the appropriate Federal
banking agency to extend the on-site examination cycle for an IDI to at
least once during an 18-month period if the IDI (1) has total assets of
less than $3 billion; (2) is well capitalized (as defined in 12
U.S.C.1831o (prompt corrective action)); (3) was found, at its most
recent examination, to be well managed \8\ and to have a composite
condition of ``outstanding'' or, in the case of an IDI with total
assets of not more than $200 million, ``outstanding'' or ``good;'' (4)
is not subject to a formal enforcement proceeding or order by the FDIC
or its appropriate Federal banking agency; and (5) has not undergone a
change in control during the previous 12-month period in which a full-
scope, on-site examination otherwise would have been required. Section
10(d)(10) of the FDI Act gives each appropriate Federal banking agency
discretionary authority to extend eligibility for an 18-month
examination cycle, by regulation, to qualifying IDIs with an
``outstanding'' or ``good'' composite condition and total assets not
greater than $3 billion, if the agency determines that this amount
would be consistent with the principles of safety and soundness for
IDIs.\9\
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\6\ 12 U.S.C. 1820(d)(1).
\7\ The Board, FDIC, or OCC. See 12 U.S.C. 1813(q).
\8\ IDIs are evaluated under the Uniform Financial Institutions
Rating System (commonly referred to as ``CAMELS''). CAMELS is an
acronym that is drawn from the first letters of the individual
components of the rating system: Capital adequacy, Asset quality,
Management, Earnings, Liquidity, and Sensitivity to market risk.
CAMELS ratings of ``1'' and ``2'' correspond with ratings of
``outstanding'' and ``good.'' In addition to having a CAMELS
composite rating of ``1'' or ``2,'' an IDI is considered to be
``well managed'' for the purposes of section 10(d) of the FDI Act
only if the IDI also received a rating of ``1'' or ``2'' for the
management component of the CAMELS rating at its most recent
examination. See 72 FR 17798 (Apr. 10, 2007).
\9\ The Board and the FDIC, as the appropriate Federal banking
agencies for State-chartered insured banks and savings associations,
are permitted to conduct on-site examinations of such IDIs on
alternating 12-month or 18-month periods with an IDI's State
supervisor, if the Board or FDIC, as appropriate, determines that
the alternating examination conducted by the State carries out the
purposes of section 10(d) of the FDI Act. 12 U.S.C. 1820(d)(3).
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In addition, section 7(c)(1)(C) of the IBA provides that a Federal
or a State branch or agency of a foreign bank shall be subject to on-
site examination by its appropriate Federal banking agency or State
bank supervisor as frequently as a national or State bank would be
subject to such an examination by the agency.
II. Description of the Interim Final Rules
The agencies are adopting interim final rules to implement the
Economic Growth Act's amendments to sections 10(d)(4) and 10(d)(10) of
the FDI Act. The rules implement section 10(d)(4) of the FDI Act to
increase, from $1 billion to $3 billion, the total asset threshold
under which an agency may apply an
[[Page 43963]]
18-month on-site examination cycle for qualified IDIs that have an
``outstanding'' composite rating.
The agencies also are exercising their discretionary authority
under section 10(d)(10) of the FDI Act to extend eligibility for an 18-
month examination cycle, by regulation, to qualifying IDIs with an
``outstanding'' or ``good'' composite rating with total assets under $3
billion. The agencies have determined that increasing the maximum asset
amount limitation for qualifying IDIs with less than $3 billion in
total assets is consistent with the principles of safety and soundness.
In determining whether the reduction in examination frequency is
consistent with the principles of safety and soundness for such IDIs,
the agencies considered the following factors. The agencies agree that
extending the examination cycle could make it more likely that there
will be a delay in an agency's ability to detect deterioration in an
IDI's performance. However, the agencies believe that extending the
examination cycle from 12 months to 18 months for these small IDIs with
relatively simple risk profiles should not appreciably increase their
risk of financial deterioration or failure. In addition, the agencies
will continue their off-site monitoring activities and have the ability
to examine IDIs more frequently as necessary or appropriate. The
agencies also note that, in order to qualify for an 18-month
examination cycle, any IDI with total assets under $3 billion--
including one with a composite rating of ``good''--must meet the other
capital, managerial, and supervisory criteria set forth in section
10(d) of the FDI Act and the agencies' implementing regulations.
Considering the agencies' off-site monitoring activities; their
discretion to examine IDIs more frequently as necessary; and the
capital, managerial, and supervisory criteria in section 10(d) of the
FDI Act, the agencies believe that increasing the maximum asset amount
limitation for IDIs from less than $1 billion to less than $3 billion
is consistent with the principles of safety and soundness.
Additionally, the agencies believe this increase will allow the
agencies to better focus their supervisory resources on the IDIs and
U.S. branches and agencies of foreign banks (collectively, financial
institutions) that may present capital, managerial, or other issues of
supervisory concern, and therefore has the ability to enhance safety
and soundness collectively for all financial institutions. The agencies
will continue to monitor financial institutions in this asset range and
the impact of the extended examination cycle.
In accordance with section 7(c)(1)(C) of the IBA, the agencies also
are making conforming changes to their regulations governing the on-
site examination cycle for the U.S. branches and agencies of foreign
banks. For the same reasons as discussed above, the agencies believe
that extending similar treatment to qualifying U.S. branches and
agencies of foreign banks is consistent with the principles of safety
and soundness.
The agencies estimate that the interim final rules will increase
the number of banks and savings associations that may qualify for an
extended 18-month examination cycle by approximately 420 (227 of which
are supervised by the FDIC, 100 by the OCC, and 93 by the Board),
bringing the total number to 4,798 banks and savings associations.\10\
Approximately 33 U.S. branches and agencies of foreign banks would be
eligible for the extended examination cycle based on the interim final
rules (2 of which are supervised by the FDIC, 9 by the OCC, and 22 by
the Board).\11\
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\10\ Call Report data, Mar. 31, 2018.
\11\ Id.
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Effective Date/Request for Comment
The agencies are issuing the interim final rules without prior
notice and the opportunity for public comment and the 30-day delayed
effective date ordinarily prescribed by the Administrative Procedure
Act (APA).\12\ Pursuant to section 553(b)(B) of the APA, general notice
and the opportunity for public comment are not required with respect to
a rulemaking when an ``agency for good cause finds (and incorporates
the finding and a brief statement of reasons therefor in the rules
issued) that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest.'' \13\ The interim
final rules implement the provisions in section 210 of the Economic
Growth Act, which was enacted on May 24, 2018. In particular, the
interim final rules adopt the statutory increase in the total asset
threshold, from under $1 billion to under $3 billion, for qualifying
IDIs with an ``outstanding'' composite rating, and also make available,
pursuant to statutory authority, the 18-month examination cycle for
qualifying IDIs with an ``outstanding'' or ``good'' composite rating
and total assets under $3 billion. The interim final rules also make
conforming amendments to the agencies' regulations governing the on-
site examination cycle for U.S. branches and agencies of foreign banks,
as required by statute.
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\12\ 5 U.S.C. 553.
\13\ 5 U.S.C. 553(b)(B).
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The agencies believe that the public interest is best served by
implementing the statutorily amended thresholds as soon as possible.
Immediate implementation will reduce regulatory burden on small, well
capitalized, and well managed financial institutions while also
allowing the agencies to better focus their supervisory resources on
those financial institutions that may present capital, managerial, or
other issues of supervisory concern. Because the affected financial
institutions and agencies must plan and prepare for examinations in
advance, the agencies believe issuing interim final rules will provide
the certainty necessary to allow the financial institutions and
agencies to begin scheduling for examinations according to the new
examination cycle period. In addition, the agencies believe that
providing a notice and comment period prior to issuance of the interim
final rules is unnecessary because the agencies do not expect public
objection to the regulations being promulgated as they merely provide
the relief that Congress intended. Moreover, because the interim final
rules will permit an agency to conduct an on-site examination of
financial institutions more frequently than once every 18 months, the
agencies retain the ability to maintain the current--or a more
frequent--on-site examination schedule for a financial institution if
the relevant agency determines it would be necessary or appropriate.
For these reasons, the agencies find there is good cause consistent
with the public interest to issue the rules without advance notice and
comment.\14\
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\14\ 5 U.S.C. 553(b)(B); 553(d)(3).
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The APA also requires a 30-day delayed effective date, except for
(1) substantive rules which grant or recognize an exemption or relieve
a restriction; (2) interpretative rules and statements of policy; or
(3) as otherwise provided by the agency for good cause.\15\ The
agencies conclude that, because the rules recognize an exemption, the
interim final rules are exempt from the APA's delayed effective date
requirement.\16\ Additionally, the agencies find good cause to publish
the interim final rules with an immediate effective date for the same
reasons set forth above under the discussion of section 553(b)(B) of
the APA.
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\15\ 5 U.S.C. 553(d).
\16\ 5 U.S.C. 553(d)(1).
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While the agencies believe there is good cause to issue the rules
without advance notice and comment and with
[[Page 43964]]
an immediate effective date, the agencies are interested in the views
of the public and request comment on all aspects of the interim final
rules.
III. Solicitation of Comments on Use of Plain Language
Section 722 of the Gramm-Leach-Bliley Act \17\ requires the Federal
banking agencies to use plain language in all proposed and final rules
published after January 1, 2000. The agencies invite your comments on
how to make these interim final rules easier to understand. For
example:
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\17\ Public Law 106-102, section 722, 113 Stat. 1338, 1471
(1999).
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Have the agencies presented the material in an organized
manner that meets your needs? If not, how could this material be better
organized?
Are the requirements in the interim final rules clearly
stated? If not, how could the interim final rules be more clearly
stated?
Do the interim final rules contain language or jargon that
is not clear? If so, which language requires clarification?
Would a different format (grouping and order of sections,
use of headings, paragraphing) make the interim final rules easier to
understand? If so, what changes to the format would make the interim
final rules easier to understand?
What else could the agencies do to make the regulation
easier to understand?
IV. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) \18\ requires an agency to
consider whether the rules it proposes will have a significant economic
impact on a substantial number of small entities.\19\ The RFA applies
only to rules for which an agency publishes a general notice of
proposed rulemaking pursuant to 5 U.S.C. 553(b). As discussed
previously, consistent with section 553(b)(B) of the APA, the agencies
have determined for good cause that general notice and opportunity for
public comment is unnecessary, and therefore the agencies are not
issuing a notice of proposed rulemaking. Accordingly, the agencies have
concluded that the RFA's requirements relating to initial and final
regulatory flexibility analysis do not apply. Further, the agencies
note that no small entities, as defined by the Small Business
Administration's rules implementing the RFA, will be affected by the
interim final rule's increased asset thresholds.
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\18\ 5 U.S.C. 601 et seq.
\19\ Under regulations issued by the Small Business
Administration, a small entity includes a depository institution,
bank holding company, or savings and loan holding company with total
assets of $550 million or less and trust companies with total assets
of $38.5 million or less.
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V. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 \20\ states that no agency may
conduct or sponsor, nor is the respondent required to respond to, an
information collection unless it displays a currently valid Office of
Management and Budget (OMB) control number. Because the interim final
rules do not create a new, or revise an existing, collection of
information, no information collection request submission needs to be
made to the OMB.
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\20\ 44 U.S.C. 3501-3521.
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VI. Riegle Community Development and Regulatory Improvement Act
Pursuant to section 302(a) of the Riegle Community Development and
Regulatory Improvement Act (RCDRIA),\21\ in determining the effective
date and administrative compliance requirements for a new regulation
that imposes additional reporting, disclosure, or other requirements on
IDIs, each Federal banking agency must consider any administrative
burdens that such regulation would place on IDIs and the benefits of
such regulation. In addition, section 302(b) of the RCDRIA requires
such new regulation to take effect on the first day of a calendar
quarter that begins on or after the date on which the regulations are
published in final form, with certain exceptions, including for good
cause. Because the interim final rules expand eligibility for an 18-
month, rather than 12-month, on-site examination schedule and are
burden-reducing in nature, the interim final rules do not impose
additional reporting, disclosure, or other requirements on IDIs, and
section 302 of the RCDRIA therefore does not apply. Nevertheless, the
agencies have considered the administrative burdens that such
regulations would place on depository institutions and the benefits of
such regulations in determining the effective date and compliance
requirements. In addition, for the same reasons set forth previously
under the discussion of section 553(b)(B) of the APA, the agencies find
good cause would exist under section 302 of RCDRIA to publish these
interim final rules with an immediate effective date.
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\21\ 12 U.S.C. 4802(a).
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VII. OCC Unfunded Mandates Reform Act of 1995 Determination
Consistent with section 202 of the Unfunded Mandates Reform Act of
1995 (UMRA), before promulgating any final rule for which a general
notice of proposed rulemaking was published, the OCC prepares an
economic analysis of the final rule. As discussed previously, the OCC
has determined that the publication of a general notice of proposed
rulemaking is unnecessary. Accordingly, the OCC has not prepared an
economic analysis of the joint interim final rules under UMRA.
List of Subjects
12 CFR Part 4
Administrative practice and procedure, Freedom of information,
Individuals with disabilities, Minority businesses, Organization and
functions (Government agencies), Reporting and recordkeeping
requirements, Women.
12 CFR Part 208
Accounting, Agriculture, Banks, banking, Confidential business
information, Crime, Currency, Federal Reserve System, Flood insurance,
Mortgages, Reporting and recordkeeping requirements, Safety and
soundness, Securities.
12 CFR Part 211
Exports, Federal Reserve System, Foreign banking, Holding
companies, Investments, Reporting and recordkeeping requirements.
12 CFR Part 337
Banks, banking, Reporting and recordkeeping requirements, Savings
Associations.
12 CFR Part 347
Authority delegations (Government agencies), Bank deposit
insurance, Banks, banking, Credit, Foreign banking, Investments,
Reporting and recordkeeping requirements, U.S. investments abroad.
Office of the Comptroller of the Currency
12 CFR Chapter I
For the reasons set forth in the joint preamble, the OCC amends
part 4 of chapter I of title 12 of the Code of Federal Regulations as
follows:
PART 4--ORGANIZATION AND FUNCTIONS, AVAILABILITY AND RELEASE OF
INFORMATION, CONTRACTING OUTREACH PROGRAM, POST-EMPLOYMENT
RESTRICTIONS FOR SENIOR EXAMINERS
0
1. The authority citation for part 4 continues to read as follows:
Authority: 5 U.S.C. 301, 552; 12 U.S.C. 1, 93a, 161, 481, 482,
484(a), 1442, 1462a, 1463,
[[Page 43965]]
1464 1817(a), 1818, 1820, 1821, 1831m, 1831p-1, 1831o, 1833e, 1867,
1951 et seq., 2601 et seq., 2801 et seq., 2901 et seq., 3101 et
seq., 3401 et seq., 5321, 5412, 5414; 15 U.S.C. 77uu(b), 78q(c)(3);
18 U.S.C. 641, 1905, 1906; 29 U.S.C. 1204; 31 U.S.C. 5318(g)(2),
9701; 42 U.S.C. 3601; 44 U.S.C. 3506, 3510; E.O. 12600 (3 CFR, 1987
Comp., p. 235).
0
2. Section 4.6 is amended by revising paragraph (b)(1) to read as
follows:
Sec. 4.6 Frequency of examination of national banks and Federal
savings associations.
* * * * *
(b) * * *
(1) The bank or Federal savings association has total assets of
less than $3 billion;
* * * * *
0
3. Section 4.7 is amended by revising paragraph (b)(1)(i) to read as
follows:
Sec. 4.7 Frequency of examination of Federal agencies and branches.
* * * * *
(b) * * *
(1) * * *
(i) Has total assets of less than $3 billion;
* * * * *
Federal Reserve System
12 CFR Chapter II
For the reasons set forth in the joint preamble, the Board amends
parts 208 and 211 of chapter II of title 12 of the Code of Federal
Regulations as follows:
PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL
RESERVE SYSTEM (REGULATION H)
0
4. The authority citation for part 208 continues to read as follows:
Authority: 12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321-338a,
371d, 461, 481-486, 601, 611, 1814, 1816, 1818, 1820(d)(9), 1833(j),
1828(o), 1831, 1831o, 1831p-1, 1831r-1, 1831w, 1831x, 1835a, 1882,
2901-2907, 3105, 3310, 3331-3351, 3353, and 3906-3909; 15 U.S.C.
78b, 781(b), 78l(i), 780-4(c)(5), 78q, 78q-1, 78w, 1681s, 1681w,
6801 and 6805, 31 U.S.C. 5318; 42 U.S.C. 4012a, 4104b, 4106, and
4128.
0
5. Amend Sec. 208.64 by revising paragraph (b)(1) to read as follows:
Sec. 208.64 Frequency of examination.
* * * * *
(b) * * *
(1) The bank has total assets of less than $3 billion;
* * * * *
PART 211--INTERNATIONAL BANKING OPERATIONS (REGULATION K)
0
6. The authority citation for part 211 continues to read as follows:
Authority: 12 U.S.C. 221 et seq., 1818, 1835a, 1841 et seq.,
3101 et seq., 3901 et seq., and 5101 et seq.; 15 U.S.C. 1681s,
1681w, 6801 and 6805.
0
7. Amend Sec. 211.26 by revising paragraph (c)(2)(i)(A) to read as
follows:
Sec. 211.26 Examinations of offices and affiliates of foreign banks.
* * * * *
(c) * * *
(2) * * *
(i) * * *
(A) Has total assets of less than $3 billion;
* * * * *
Federal Deposit Insurance Corporation
12 CFR Chapter III
For the reasons set forth in the joint preamble, the Board of
Directors of the FDIC amends parts 337 and 347 of chapter III of title
12 of the Code of Federal Regulations as follows:
PART 337--UNSAFE AND UNSOUND BANK PRACTICES
0
8. The authority citation for part 337 continues to read as follows:
Authority: 12 U.S.C. 375a(4), 375b, 1463(a)(1), 1816, 1818(a),
1818(b), 1819, 1820(d), 1828(j)(2), 1831, 1831f, 5412.
0
9. Amend Sec. 337.12 by revising paragraph (b)(1) to read as follows:
Sec. 337.12 Frequency of examination.
* * * * *
(b) * * *
(1) The institution has total assets of less than $3 billion;
* * * * *
PART 347--INTERNATIONAL BANKING
0
10. The authority citation for part 347 continues to read as follows:
Authority: 12 U.S.C. 1813, 1815, 1817, 1819, 1820, 1828, 3103,
3104, 3105, 3108, 3109; Pub. L. 111-203, section 939A, 124 Stat.
1376, 1887 (July 21, 2010) (codified 15 U.S.C. 78o-7 note).
0
11. Amend Sec. 347.211 by revising paragraph (b)(1)(i) to read as
follows:
Sec. 347.211 Examination of branches of foreign banks.
* * * * *
(b) * * *
(1) * * *
(i) Has total assets of less than $3 billion;
* * * * *
Dated: August 20, 2018.
Joseph M. Otting,
Comptroller of the Currency.
Board of Governors of the Federal Reserve System, August 22,
2018.
Ann E. Misback,
Secretary to the Board.
Dated at Washington, DC, on August 22, 2018.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2018-18685 Filed 8-28-18; 8:45 am]
BILLING CODE 4810-33-P