[Federal Register Volume 78, Number 74 (Wednesday, April 17, 2013)]
[Rules and Regulations]
[Pages 22771-22773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-08986]


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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Chapter III


Statement of Policy on the Development and Review of Regulations 
and Policies

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Revision of statement of policy.

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SUMMARY: The FDIC is updating its Statement of Policy entitled, 
``Development and Review of FDIC Regulations and Policies'' (Policy 
Statement). The Policy Statement articulates the basic principles that 
guide the FDIC in its promulgation and review of regulations and 
written statements of policy. The Policy Statement is being revised to 
more fully reflect the FDIC's current rulemaking policies and 
procedures, as well as take into account various organizational changes 
since the Policy Statement was adopted.

DATES: Effective Date: April 17, 2013.

FOR FURTHER INFORMATION CONTACT: Munsell St. Clair, Chief, Fund 
Analysis and Pricing Section, Division of Insurance and Research, (202) 
898-8967, or Michelle Borzillo, Legal Division, (703) 562-6083, Federal 
Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 
20429.

SUPPLEMENTARY INFORMATION: The FDIC has a longstanding and ongoing 
commitment to ensure that its regulations and policies achieve 
legislative and regulatory goals in the most efficient and effective 
manner possible. As part of that commitment, the FDIC recently 
undertook a review of its existing Policy Statement, which was adopted 
in 1998, to determine what updates and clarifications would be 
appropriate. As a result of that review, the FDIC Board of Directors 
adopted revisions to the existing Policy Statement to more fully 
reflect the FDIC's current rulemaking policies and

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procedures as well as take into account various organizational changes. 
These revisions highlight important rulemaking processes and 
procedures, such as the FDIC's open and transparent rulemaking process, 
robust interagency coordination, evaluation of regulatory costs and 
benefits (including consideration of alternatives), and periodic review 
of existing regulations.
    Text: The text of the revised Policy Statement is as follows:

Development and Review of FDIC Regulations and Policies

Statement of Policy

I. Purpose and Scope
    The Federal Deposit Insurance Corporation is committed to 
continually improving the quality of its regulations and policies, to 
minimizing regulatory burdens on the public and the banking industry, 
and generally to ensuring that its regulations and policies achieve 
legislative goals effectively and efficiently. The purpose of this 
statement of policy (Policy) is to establish basic principles which 
guide the FDIC's promulgation and review of regulations and written 
statements of policy. This Policy applies to regulations and written 
statements of policy issued by the Board of Directors of the FDIC.
II. Principles for the Development and Review of Regulations and 
Statements of Policy
    The following principles guide the FDIC in its development of 
regulations and written policies:
     The implications of regulations and statements of policy 
should be evaluated. Before issuing or updating a regulation or written 
statement of policy the FDIC gives careful consideration to the need 
for such action. Frequently a regulation is required by statute. 
Alternatively, the FDIC may identify a need for a supervisory tool to 
implement its statutory obligations, such as maintaining public 
confidence in the financial system through safety and soundness and 
compliance supervision, protecting insured depositors, closing failed 
institutions, and preventing or mitigating systemic risk. The FDIC also 
may identify a need to clarify its policy for the benefit of the 
banking industry or the public. To bring different perspectives to the 
development of a regulation, the FDIC typically assigns staff with 
different backgrounds or expertise to a regulatory project; such staff 
may include examiners, economists, lawyers or accountants, depending on 
the regulation.
    Once the need or requirement for a regulation or statement of 
policy is determined, the FDIC evaluates benefits and costs, based on 
available information, and considers reasonable and possible 
alternatives. For many rulemakings, one or more alternatives likely 
will be available, at least with respect to some aspects of the rule. 
The main alternatives, once identified as available, should be 
described and analyzed for their consistency with the statutory or 
regulatory objectives, effectiveness in achieving those objectives, and 
burden on the public or industry. In this context, the FDIC seeks to 
minimize to the extent practicable the burdens which the proposed 
regulation or policy imposes on the banking industry and the public. 
For example, new reporting and recordkeeping requirements imposed by a 
regulation are carefully analyzed. The effect of the regulation or 
statement of policy on competition within the industry is considered. 
Particular attention is focused on the impact that a regulation will 
have on small institutions and whether there are comprehensive or 
targeted alternatives to accomplish the FDIC's goal which would 
minimize any burden on small institutions. Typically, when notice and 
opportunity for comment is involved, comment is sought on these 
matters. Prior to issuance of a final rule, the potential benefits 
associated with the regulation are weighed against the potential costs. 
Both the proposed and final rule should discuss key implications that 
the FDIC considered in its analysis.
     Regulations and policies should be clearly, 
understandably, and concisely written. The FDIC seeks to make its 
regulations and statements of policy as clear and as understandable as 
possible to those persons who are affected by them. In developing or 
reviewing existing regulations and statements of policy, the FDIC 
considers the document's organizational structure, as well as the 
specific language used and the target audience; all are important 
components to achieving a clear and useful statement.
     The public should have a meaningful opportunity to 
participate in an open and transparent rulemaking process. The FDIC 
encourages public participation in the rulemaking process. Whether a 
new regulation is being promulgated or an existing one revised, the 
Board gives careful consideration to the implications of its actions as 
public policy. Public participation in the rulemaking process is an 
opportunity for the Board to hear directly from affected members of the 
public with important experience and insights related to the pertinent 
issues. As part of this, the FDIC recognizes the importance of 
providing adequate time for the public comment process and thus, 
generally provides a 60-day comment period. Under appropriate 
circumstances, the FDIC may provide a longer comment period and, 
occasionally, as permitted by the Administrative Procedure Act (APA), a 
shorter comment period if quicker action is needed. A person or 
organization may petition the Board for the issuance, amendment, or 
repeal of any regulation or policy by submitting a written petition to 
the Executive Secretary of the FDIC. The petition should include a 
complete and concise statement of the petitioner's interest in the 
subject matter and the reasons why the petition should be granted.
    All rulemaking is carried out in accordance with the APA (as well 
as other applicable law \1\), and the Board provides the public with 
notices of proposed rulemaking and opportunities to submit comments on 
the proposals. The Board also may seek public comment on proposed 
statements of policy as well. All comments and proposed alternatives 
received during the comment period are carefully considered prior to 
the issuance of a final rule or statement of policy. The Board takes 
final action on proposed regulations and policies as promptly as 
circumstances allow. If a significant period of time elapses following 
the publication of a proposed rule or statement of policy without final 
action, the Board will consider withdrawing the proposal or 
republishing it for comment. If the Board decides to reconsider a 
proposed regulation or statement of policy that has been withdrawn, it 
will begin the rulemaking or policy development process anew.
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    \1\ In addition to specific statutory provisions necessitating 
an implementing rulemaking or statement of policy, other applicable 
law includes the Regulatory Flexibility Act, Paperwork Reduction 
Act, Section 722 of the Gramm-Leach-Bliley Act, the Plain Writing 
Act of 2010, Section 302 of the Riegle Community Development and 
Regulatory Improvement Act of 1994, Small Business Regulatory 
Enforcement Fairness Act, and Economic Growth and Regulatory Paper 
Reduction Act of 1996.
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    The FDIC Board typically considers proposed and final regulations 
at meetings open to the public. The written recommendations of FDIC 
staff are made available on the FDIC's public Web site, and the FDIC 
also broadcasts public Board meetings live over the Internet. Comment 
letters on pending proposed rules or statements of policy can be 
submitted electronically through the FDIC's public Web site, and all 
letters are posted on the FDIC's public

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Web site for easy access by all interested parties. In addition, the 
FDIC posts notices of meetings held with outside parties commenting on 
pending rulemakings during the comment period and may, in appropriate 
circumstances, hold roundtable discussions on issues of particular 
importance.
     Common or overlapping statutory and supervisory 
requirements should be implemented by the Federal financial 
institutions regulators in a coordinated way. The FDIC has many 
statutory and supervisory requirements that are common to the Board of 
Governors of the Federal Reserve System and the Office of the 
Comptroller of the Currency, and some are common to the Consumer 
Financial Protection Bureau, and/or the National Credit Union 
Administration. The more uniform the Federal financial institutions 
regulators can be in their regulations, policies and approaches to 
supervision, the easier it will be for the industry and the public to 
comply with the regulators' requirements. The FDIC is a member of the 
Federal Financial Institutions Examination Council (FFIEC) and works 
with the other federal financial institutions regulators through the 
FFIEC to make uniform those regulations and policies that implement 
common statutory or supervisory policies.
    Moreover, other statutory and supervisory requirements may overlap 
either in substance or in effect on other participants in the financial 
sector. As a result, coordination with other regulators (such as the 
Securities and Exchange Commission, Commodity Futures Trading 
Commission, and Federal Housing Finance Agency) has become more common. 
Some rulemakings also require consultation with the Financial Stability 
Oversight Council. Where required by law or otherwise appropriate, 
interagency working groups consult or collaborate to develop rules and 
policy statements to identify interactions and promote consistency.
III. Periodic Review of Existing Regulations and Statements of Policy
    To ensure that the FDIC's regulations and written statements of 
policy are current, effective, and efficient, and continue to meet the 
principles set forth in this Policy, the FDIC periodically undertakes a 
review of each regulation and statement of policy. Sometimes, this 
review is done in conjunction with a change to a regulation or policy 
statement triggered by a change in the law. In addition, under the 
Economic Growth and Regulatory Paperwork Reduction Act of 1996 and in 
conjunction with other FFIEC agencies, the FDIC conducts a 
comprehensive review of its regulations, at least once every ten years, 
to identify any outdated, unnecessary, or unduly burdensome regulatory 
requirements imposed on financial institutions. The FDIC also may 
initiate a targeted review in a specific area based on changes in the 
markets or observations at bank examinations, for example.
    Factors to be considered in determining whether a regulation or 
written policy should be revised or eliminated include: the continued 
need for the regulation or policy; opportunities to simplify or clarify 
the regulation or policy; the need to eliminate duplicative and 
inconsistent regulations and policies; and the extent to which 
technology, economic conditions, and other factors have changed in the 
area affected by the regulation or policy. The result of this review 
will be a specific decision for each regulation and statement of policy 
to retain, revise, or rescind it. The principles of regulation and 
statement of policy development, as articulated in this Policy, will 
apply to the periodic reviews as well.

    Dated at Washington, DC, this 11th day of April 2013.

    By order of the Board of Directors.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2013-08986 Filed 4-16-13; 8:45 am]
BILLING CODE 6714-01-P