[Federal Register Volume 63, Number 4 (Wednesday, January 7, 1998)]
[Proposed Rules]
[Page 1044]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-204]



[[Page 1043]]

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Part IV





Department of the Treasury





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Office of Thrift Supervision



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12 CFR Parts 563 and 536b



Capital Distributions: Withdrawal of Proposed Rule and Regulation 
Amendments; Proposed Rules

  Federal Register / Vol. 63, No. 4 / Wednesday, January 7, 1998 / 
Proposed Rules  

[[Page 1044]]



DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Part 563

[No. 97-127]
RIN 1550-AA72


Capital Distributions; Withdrawal of Proposed Rule

AGENCY: Office of Thrift Supervision (OTS), Treasury.

ACTION: Proposed rule; withdrawal.

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SUMMARY: The OTS is withdrawing the proposed rule amending its capital 
distributions regulation originally published on December 5, 1994. 
Elsewhere in today's issue of the Federal Register, the OTS has 
published a new proposal making more extensive revisions to the 
regulation.

DATES: Proposed amendment to Sec. 563.134 is withdrawn on January 7, 
1998.

FOR FURTHER INFORMATION CONTACT: Edward J. O'Connell, III, Project 
Manager, (202) 906-5694; Robyn Dennis, Manager, (202) 906-5751, 
Supervision Policy; Evelyne Bonhomme, Counsel (Banking and Finance), 
(202) 906-7052; or Karen Osterloh, Assistant Chief Counsel, (202) 906-
6639, Regulations and Legislation Division, Chief Counsel's Office, 
Office of Thrift Supervision, 1700 G Street, N.W., Washington, DC 
20552.

SUPPLEMENTARY INFORMATION:

Background

    In 1990, the OTS adopted the current capital distributions rule at 
12 CFR 563.134. The rule permits a savings association to make a 
capital distribution based on its level of capitalization. The 
regulation was originally intended to restrict capital distributions by 
savings associations that did not meet the capital requirements imposed 
in the Financial Institutions Reform, Recovery, and Enforcement Act of 
1989.
    On December 5, 1994, the OTS issued a proposed rule revising the 
capital distributions regulation. 59 FR 62356. The proposed rule was 
designed to incorporate statutory changes contained in the prompt 
corrective action statute at 12 U.S.C. 1831o (PCA requirements) and to 
reflect the improved capital position of the thrift industry.
    Section 303 of the CDRIA (12 U.S.C. 4803) requires the OTS to 
streamline and modify its regulations to improve efficiency, reduce 
unnecessary costs, and eliminate unwarranted constraints on credit 
availability. Section 303 also requires the OTS to remove 
inconsistencies and outmoded and duplicative requirements from its 
regulations.
    Consistent with these requirements, elsewhere in today's Federal 
Register the OTS is proposing a new rule that updates, simplifies, and 
streamlines Sec. 563.134. Like the 1994 proposal, today's proposed rule 
reflects PCA requirements. The new proposal also contains changes 
designed to simplify the rule and to conform OTS's capital 
distributions requirements with those that apply to banks. The proposal 
utilizes plain English drafting techniques to make the regulation 
easier to understand.

Withdrawal of the Proposed Rule

    In light of the newly proposed revisions to Sec. 563.134, the OTS 
withdraws its proposal published in the Federal Register on December 5, 
1994 at 59 FR 62358.

    Dated: December 10, 1997.

    By the Office of Thrift Supervision.
Ellen S. Seidman,
Director.
[FR Doc. 98-204 Filed 1-6-98; 8:45 am]
BILLING CODE 6720-01-P