[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
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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.

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

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).
---------------------------------------------------------------------------

    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