[Federal Register Volume 76, Number 246 (Thursday, December 22, 2011)]
[Rules and Regulations]
[Pages 79529-79531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-32727]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
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Federal Register / Vol. 76, No. 246 / Thursday, December 22, 2011 /
Rules and Regulations
[[Page 79529]]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Parts 25 and 195
[Docket ID OCC-2011-0027]
RIN 1557-AD60
FEDERAL RESERVE SYSTEM
12 CFR Part 228
[Regulation BB; Docket No. R-1437]
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 345
RIN 3064-AD90
Community Reinvestment Act Regulations
AGENCIES: Office of the Comptroller of the Currency, Treasury (OCC);
Board of Governors of the Federal Reserve System (Board); and Federal
Deposit Insurance Corporation (FDIC).
ACTION: Joint final rule; technical amendment.
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SUMMARY: The OCC, the Board, and the FDIC (collectively, the
``agencies'') are amending their Community Reinvestment Act (CRA)
regulations to adjust the asset-size thresholds used to define ``small
bank'' or ``small savings association'' and ``intermediate small bank''
or ``intermediate small savings association.'' As required by the CRA
regulations, the adjustment to the threshold amount is based on the
annual percentage change in the Consumer Price Index.
DATES: Effective Date: January 1, 2012.
FOR FURTHER INFORMATION CONTACT:
OCC: Margaret Hesse, Special Counsel, Community and Consumer Law
Division, (202) 874-5750; or Brian Borkowicz, National Bank Examiner,
Compliance Policy Division, (202) 874-4428, Office of the Comptroller
of the Currency, 250 E Street SW., Washington, DC 20219.
Board: Celeste Anderson, Senior Supervisory Consumer Financial Services
Analyst, (202) 452-2677; or Nikita Pastor, Counsel, (202) 452-3667,
Division of Consumer and Community Affairs, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue NW.,
Washington, DC 20551.
FDIC: Janet R. Gordon, Senior Policy Analyst, Division of Depositor and
Consumer Protection, Supervisory Policy Branch, (202) 898-3850; or
Susan van den Toorn, Counsel, Legal Division, (202) 898-8707, Federal
Deposit Insurance Corporation, 550 17th Street NW., Washington, DC
20429.
SUPPLEMENTARY INFORMATION:
Background and Description of the Joint Final Rule
The agencies' CRA regulations establish CRA performance standards
for small and intermediate small banks and savings associations. The
regulations define small and intermediate small institutions by
reference to asset-size criteria expressed in dollar amounts, and they
further require the agencies to publish annual adjustments to these
dollar figures based on the year-to-year change in the average of the
Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPIW), not seasonally adjusted, for each twelve-month period ending in
November, with rounding to the nearest million. 12 CFR 25.12(u)(2),
195.12(u)(2), 228.12(u)(2), and 345.12(u)(2). This adjustment formula
was first adopted for CRA purposes by the OCC, Board, and FDIC on
August 2, 2005, effective September 1, 2005. 70 FR 44256 (Aug. 2,
2005). As explained in the SUPPLEMENTARY INFORMATION section of these
agencies' proposed rule, this particular index is used in other federal
lending regulations such as the Home Mortgage Disclosure Act (HMDA). 70
FR 12148 (Mar. 22, 2007). See 12 U.S.C. 2808; 12 CFR 203.2(e)(1). On
March 22, 2007, and effective July 1, 2007, the Office of Thrift
Supervision (OTS), the agency responsible for regulating savings
associations, adopted an annual adjustment formula consistent with that
of the other federal banking agencies in its CRA rule set forth at 12
CFR 563e. 72 FR 13429. Pursuant to the Dodd-Frank Wall Street Reform
and Consumer Protection Act (Dodd-Frank Act),\1\ and effective July 21,
2011, rulemaking authority for federal and state savings associations
was transferred from the OTS to OCC, and the OCC subsequently
republished, at 12 CFR 195, the CRA regulations applicable to those
institutions.\2\ In addition, the Dodd-Frank Act transferred
responsibility for supervision of savings and loan holding companies
and their non-depository subsidiaries from the OTS to the Board, and
the Board subsequently amended its CRA regulation to reflect this
transfer of supervision authority.\3\
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\1\ Public Law 111-203, 124 Stat. 1376 (2010).
\2\ See OCC interim final rule, 76 FR 48950 (Aug. 9, 2011).
\3\ See Board interim final rule, 76 FR 56508 (Sept. 13, 2011).
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The threshold for small banks and small savings associations was
revised most recently effective January 1, 2011 (75 FR 82217 (Dec. 30,
2010)). The CRA regulations, effective January 1, 2011, provide that
banks and savings associations that, as of December 31 of either of the
prior two calendar years, had assets of less than $1.122 billion are
``small banks'' or ``small savings associations.'' Small banks and
small savings associations with assets of at least $280 million as of
December 31 of both of the prior two calendar years and less than
$1.122 billion as of December 31 of either of the prior two calendar
years are ``intermediate small banks'' or ``intermediate small savings
associations.'' 12 CFR 25.12(u)(1), 195.12(u)(1), 228.12(u)(1), and
345.12(u)(1). This joint final rule further revises these thresholds.
During the period ending November 2011, the CPIW increased by 3.43
percent. As a result, the agencies are revising 12 CFR 25.12(u)(1),
195.12(u)(1), 228.12(u)(1), and 345.12(u)(1) to make this annual
adjustment. Beginning January 1, 2012, banks and savings associations
that, as of December 31 of either of the prior two calendar years, had
assets of less than $1.160 billion are ``small banks'' or ``small
savings associations.'' Small banks or small savings associations with
assets of at least $290 million as of December 31 of both of the prior
two calendar years and less than $1.160 billion as of December 31 of
either of the
[[Page 79530]]
prior two calendar years are ``intermediate small banks'' or
``intermediate small savings associations.'' The agencies also publish
current and historical asset-size thresholds on the Web site of the
Federal Financial Institutions Examination Council at http://www.ffiec.gov/cra/.
Administrative Procedure Act and Effective Date
Under 5 U.S.C. 553(b)(B) of the Administrative Procedure Act (APA),
an agency may, for good cause, find (and incorporate the finding and a
brief statement of reasons therefore in the rules issued) that notice
and public procedure thereon are impracticable, unnecessary, or
contrary to the public interest.
The amendments to the regulations to adjust the asset-size
thresholds for small and intermediate small banks and savings
associations result from the application of a formula established by a
provision in the CRA regulations that the agencies previously published
for comment. See 70 FR 12148 (Mar. 11, 2005), 70 FR 44256 (Aug. 2,
2005), 71 FR 67826 (Nov. 24, 2006), and 72 FR 13429 (Mar. 22, 2007).
Sections 25.12(u)(1), 195.12(u)(1), 228.12(u)(1), and 345.12(u)(1) are
amended by adjusting the asset-size thresholds as provided for in
Sec. Sec. 25.12(u)(2), 195.12(u)(2), 228.12(u)(2), and 345.12(u)(2).
Accordingly, since the agencies' rules provide no discretion as to
the computation or timing of the revisions to the asset-size criteria,
the agencies have determined that publishing a notice of proposed
rulemaking and providing opportunity for public comment are
unnecessary.
The effective date of this joint final rule is January 1, 2012.
Under 5 U.S.C. 553(d)(3) of the APA, the required publication or
service of a substantive rule shall be made not less than 30 days
before its effective date, except, among other things, as provided by
the agency for good cause found and published with the rule. Because
this rule adjusts asset-size thresholds consistent with the procedural
requirements of the CRA rules, the agencies conclude that it is not
substantive within the meaning of the APA's delayed effective date
provision. Moreover, the agencies find that there is good cause for
dispensing with the delayed effective date requirement, even if it
applied, because their current rules already provide notice that the
small and intermediate asset-size thresholds will be adjusted as of
December 31 based on twelve-month data as of the end of November each
year.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) does not apply to a rulemaking
where a general notice of proposed rulemaking is not required. 5 U.S.C.
603 and 604. As noted previously, the agencies have determined that it
is unnecessary to publish a general notice of proposed rulemaking for
this joint final rule. Accordingly, the RFA's requirements relating to
an initial and final regulatory flexibility analysis do not apply.
Paperwork Reduction Act of 1995
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3506; 5 CFR 1320), the agencies reviewed this final rule. No
collections of information pursuant to the Paperwork Reduction Act are
contained in the final rule.
Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C.
1532 (Unfunded Mandates Act), requires that an agency must prepare a
budgetary impact statement before promulgating any final rule for which
a general notice of proposed rulemaking was published. As discussed
above, the agencies have determined that the publication of a general
notice of proposed rulemaking is unnecessary. Accordingly, this joint
final rule is not subject to section 202 of the Unfunded Mandates Act.
List of Subjects
12 CFR Part 25
Community development, Credit, Investments, National banks,
Reporting and recordkeeping requirements.
12 CFR Part 195
Community development, Credit, Investments, Reporting and
recordkeeping requirements, Savings associations.
12 CFR Part 228
Banks, banking, Community development, Credit, Investments,
Reporting and recordkeeping requirements.
12 CFR Part 345
Banks, banking, Community development, Credit, Investments,
Reporting and recordkeeping requirements.
Department of the Treasury
Office of the Comptroller of the Currency
12 CFR Chapter I
For the reasons discussed in the SUPPLEMENTARY INFORMATION section,
12 CFR parts 25 and 195 are amended as follows:
PART 25--COMMUNITY REINVESTMENT ACT AND INTERSTATE DEPOSIT
PRODUCTION REGULATIONS
0
1. The authority citation for part 25 continues to read as follows:
Authority: 12 U.S.C. 21, 22, 26, 27, 30, 36, 93a, 161, 215,
215a, 481, 1814, 1816, 1828(c), 1835a, 2901 through 2908, and 3101
through 3111.
0
2. Revise Sec. 25.12(u)(1) to read as follows:
Sec. 25.12 Definitions.
* * * * *
(u) Small bank--(1) Definition. Small bank means a bank that, as of
December 31 of either of the prior two calendar years, had assets of
less than $1.160 billion. Intermediate small bank means a small bank
with assets of at least $290 million as of December 31 of both of the
prior two calendar years and less than $1.160 billion as of December 31
of either of the prior two calendar years.
* * * * *
PART 195--COMMUNITY REINVESTMENT
0
3. The authority citation for part 195 continues to read as follows:
Authority: 12 U.S.C. 1462a, 1463, 1464, 1814, 1816, 1828(c),
2901 through 2908, and 5412(b)(2)(B).
0
4. Revise Sec. 195.12(u)(1) to read as follows:
Sec. 195.12 Definitions.
* * * * *
(u) Small savings association--(1) Definition. Small savings
association means a savings association that, as of December 31 of
either of the prior two calendar years, had assets of less than $1.160
billion. Intermediate small savings association means a small savings
association with assets of at least $290 million as of December 31 of
both of the prior two calendar years and less than $1.160 billion as of
December 31 of either of the prior two calendar years.
* * * * *
[[Page 79531]]
Federal Reserve System
12 CFR Chapter II
For the reasons set forth in the SUPPLEMENTARY INFORMATION section,
the Board of Governors of the Federal Reserve System amends part 228 of
chapter II of title 12 of the Code of Federal Regulations as follows:
PART 228--COMMUNITY REINVESTMENT (REGULATION BB)
0
1. The authority citation for part 228 continues to read as follows:
Authority: 12 U.S.C. 321, 325, 1828(c), 1842, 1843, 1844, and
2901 et seq.
0
2. Revise Sec. 228.12(u)(1) to read as follows:
Sec. 228.12 Definitions.
* * * * *
(u) Small bank--(1) Definition. Small bank means a bank that, as of
December 31 of either of the prior two calendar years, had assets of
less than $1.160 billion. Intermediate small bank means a small bank
with assets of at least $290 million as of December 31 of both of the
prior two calendar years and less than $1.160 billion as of December 31
of either of the prior two calendar years.
* * * * *
Federal Deposit Insurance Corporation
12 CFR Chapter III
Authority and Issuance
For the reasons set forth in the SUPPLEMENTARY INFORMATION section,
the Board of Directors of the Federal Deposit Insurance Corporation
amends part 345 of chapter III of title 12 of the Code of Federal
Regulations to read as follows:
PART 345--COMMUNITY REINVESTMENT
0
1. The authority citation for part 345 continues to read as follows:
Authority: 12 U.S.C. 1814-1817, 1819-1820, 1828, 1831u and
2901-2907, 3103-3104, and 3108(a).
2. Revise Sec. 345.12(u)(1) to read as follows:
Sec. 345.12 Definitions.
* * * * *
(u) Small bank--(1) Definition. Small bank means a bank that, as of
December 31 of either of the prior two calendar years, had assets of
less than $1.160 billion. Intermediate small bank means a small bank
with assets of at least $290 million as of December 31 of both of the
prior two calendar years and less than $1.160 billion as of December 31
of either of the prior two calendar years.
* * * * *
Dated: December 13, 2011.
Julie L. Williams,
First Senior Deputy Comptroller and Chief Counsel.
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated
authority, December 16, 2011.
Robert deV. Frierson,
Deputy Secretary of the Board.
By order of the Board of Directors.
Dated at Washington, DC, this 13th day of December, 2011.
Federal Deposit Insurance Corporation.
Valerie J. Best,
Assistant Executive Secretary.
[FR Doc. 2011-32727 Filed 12-21-11; 8:45 am]
BILLING CODE 4810-33-6210-01-6714-01-P