[Federal Register Volume 82, Number 11 (Wednesday, January 18, 2017)]
[Rules and Regulations]
[Pages 5354-5356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31928]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Parts 25 and 195
[Docket ID OCC-2016-0031]
RIN 1557-AE11
FEDERAL RESERVE SYSTEM
12 CFR Part 228
[Regulation BB; Docket No. R-1554]
RIN 7100-AE64
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 345
RIN 3064-AD90
Community Reinvestment Act Regulations
AGENCY: 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 for Urban Wage
Earners and Clerical Workers (CPI-W). The FDIC is also amending its CRA
Notice requirements to reflect two technical changes concerning the
manner in which the agency will receive public comments considered in
the CRA examination process.
DATES: Effective January 18, 2017.
FOR FURTHER INFORMATION CONTACT:
OCC: Emily Boyes, Attorney, Community and Consumer Law Division,
(202) 649-6350; Marta E. Stewart-Bates, Attorney, Legislative and
Regulatory Activities Division, (202) 649-5490; for persons who are
deaf or hard of hearing, TTY, (202) 649-5597; or Bobbie K. Kennedy,
Bank Examiner, Compliance Policy Division, (202) 649-5470, Office of
the Comptroller of the Currency, 400 7th Street SW., Washington, DC
20219.
Board: Amal S. Patel, Senior Supervisory Consumer Financial
Services Analyst, (202) 912-7879; or Nikita Pastor, Senior 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: Patience R. Singleton, Senior Policy Analyst, Supervisory
Policy Branch, Division of Depositor and Consumer Protection, (202)
898-6859; or Richard M. Schwartz, Counsel, Legal Division, (202) 898-
7424, 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
CRA regulations define small and intermediate small banks and savings
associations 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 CPI-W, not seasonally adjusted, for each 12-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, the
Board, and the FDIC on August 2, 2005, effective September 1, 2005. 70
FR 44256 (Aug. 2, 2005). The Agencies noted that the CPI-W is also used
in connection with other federal laws, such as the Home Mortgage
Disclosure Act. See 12 U.S.C. 2808; 12 CFR 1003.2. On March 22, 2007,
and effective July 1, 2007, the former Office of Thrift Supervision,
the agency then responsible for regulating savings associations,
adopted an annual adjustment formula consistent with that of the other
federal banking agencies in its CRA rule previously set forth at 12 CFR
563e. 72 FR 13429 (Mar. 22, 2007).
Pursuant to the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act),\1\ effective July 21, 2011, CRA
rulemaking authority for federal and state savings associations was
transferred from the OTS to the 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 supervisory 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 in December 2015 and became effective January 1,
2016. 80 FR 81162 (Dec. 29, 2015). The current CRA regulations provide
that banks and savings associations that, as of December 31 of either
of the prior two calendar years, had assets of less than $1.216 billion
are small banks or small savings associations. Small banks and small
savings associations with assets of at least $304 million as of
December 31 of both of the prior two calendar years and less than
$1.216 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 revises these thresholds.
During the 12-month period ending November 2016, the CPI-W
increased by 0.84 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 18, 2017, banks and savings
associations that, as of December 31 of either of the prior two
calendar years, had assets of less than $1.226 billion are small banks
or small savings associations. Small banks and small savings
associations with assets of at least $307 million as of December 31 of
both of the prior two calendar years and less than $1.226 billion as of
December 31 of either of the prior two calendar years are intermediate
small banks or intermediate small savings associations. The Agencies
also publish
[[Page 5355]]
current and historical asset-size thresholds on the Web site of the
Federal Financial Institutions Examination Council at http://www.ffiec.gov/cra/.
The FDIC is also amending its CRA Notice requirements located at
Appendix B to Part 345. The current appendix states that Regional
Managers are the proper agency officials responsible for both making
available, upon request, lists of the banks scheduled for CRA
examination in any particular quarter and receiving any public comment
regarding the CRA performance of any of those banks. Since that
language was published, a technical change was made to the responsible
official's title from Regional Manager to Regional Director. In
addition, since the original notice requirements were written, there
has been the creation of a Web page to receive public comments
electronically. The amendments made in this notice reflect those two
changes. The associated changes to the CRA notice requirements will
compel covered institutions to print and post the revised CRA notices
in their main and branch offices.
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 respective 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). As a result, Sec. Sec. 25.12(u)(1), 195.12(u)(1),
228.12(u)(1), and 345.12(u)(1) of the Agencies' respective CRA
regulations 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, the Agencies' rules provide no discretion as to the
computation or timing of the revisions to the asset-size criteria.
Furthermore, revising the FDIC's CRA Notice requirements to reflect the
two referenced changes to the manner in which the agency will receive
public comments considered in the CRA examination process is a
technical and non-substantive revision. For these reasons, 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 18, 2017.
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 small asset-size thresholds will be adjusted as
of December 31 based on 12-month data as of the end of November each
year.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) does not apply to a rulemaking
when 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
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) 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. The
Agencies have determined that this final rule does not create any new,
or revise any existing, collections of information pursuant to the
Paperwork Reduction Act. Consequently, no information collection
request will be submitted to the OMB for review.
Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995 (Unfunded
Mandates Act), 2 U.S.C. 1532, requires the OCC to prepare a budgetary
impact statement before promulgating any final rule for which a general
notice of proposed rulemaking was published. As discussed above, the
OCC has 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 preamble, the Office of
Comptroller of the Currency amends 12 CFR parts 25 and 195, the Board
of Governors of the Federal Reserve System amends part 228 of chapter
II, and Board of Directors of the Federal Deposit Insurance Corporation
amends part 345 of chapter III of title 12 of the Code of Federal
Regulations 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. Section 25.12 is amended by revising paragraph (u)(1) to read as
follows:
Sec. 25.12 Definitions.
* * * * *
(u) * * *
[[Page 5356]]
(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 $1.226
billion. Intermediate small bank means a small bank with assets of at
least $307 million as of December 31 of both of the prior two calendar
years and less than $1.226 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. Section 195.12 is amended by revising paragraph (u)(1) to read as
follows:
Sec. 195.12 Definitions.
* * * * *
(u) * * *
(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 $1.226 billion. Intermediate small
savings association means a small savings association with assets of at
least $307 million as of December 31 of both of the prior two calendar
years and less than $1.226 billion as of December 31 of either of the
prior two calendar years.
* * * * *
Federal Reserve System
12 CFR Chapter II
PART 228--COMMUNITY REINVESTMENT (REGULATION BB)
0
5. 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
6. Section 228.12 is amended by revising paragraph Sec. 228.12(u)(1).
The revision is set forth below:
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 $1.226 billion. Intermediate small bank means a small bank
with assets of at least $307 million as of December 31 of both of the
prior two calendar years and less than $1.226 billion as of December 31
of either of the prior two calendar years.
Federal Deposit Insurance Corporation
12 CFR Chapter III
PART 345--COMMUNITY REINVESTMENT
0
7. The authority citation for part 345 continues to read as follows:
Authority: 12 U.S.C. 1814-1817, 1819-1820, 1828, 1831u and
2901-2908, 3103-3104, and 3108(a).
0
8. Section 345.12 is amended by revising paragraph (u)(1) to read as
follows:
Sec. 345.12 Definitions.
* * * * *
(u) * * *
(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 $1.226
billion. Intermediate small bank means a small bank with assets of at
least $307 million as of December 31 of both of the prior two calendar
years and less than $1.226 billion as of December 31 of either of the
prior two calendar years.
* * * * *
0
9. Appendix B to part 345 is amended by revising the fourth and fifth
paragraphs of section (a) and the fifth and sixth paragraphs of section
(b) to read as follows:
Appendix B to Part 345--CRA Notice
(a) * *
Community Reinvestment Act Notice
* * * * *
At least 30 days before the beginning of each quarter, the FDIC
publishes a nationwide list of the banks that are scheduled for CRA
examination in that quarter. This list is available from the
Regional Director, FDIC (address). You may send written comments
about our performance in helping to meet community credit needs to
(name and address of official at bank) and FDIC Regional Director.
You may also submit comments electronically through the FDIC's Web
site at www.fdic.gov/regulations/cra. Your letter, together with any
response by us, will be considered by the FDIC in evaluating our CRA
performance and may be made public.
You may ask to look at any comments received by the FDIC
Regional Director. You may also request from the FDIC Regional
Director an announcement of our applications covered by the CRA
filed with the FDIC. We are an affiliate of (name of holding
company), a bank holding company. You may request from the (title of
responsible official), Federal Reserve Bank of _______(address) an
announcement of applications covered by the CRA filed by bank
holding companies.
* * * * *
(b) * * *
Community Reinvestment Act Notice
* * * * *
At least 30 days before the beginning of each quarter, the FDIC
publishes a nationwide list of the banks that are scheduled for CRA
examination in that quarter. This list is available from the
Regional Director, FDIC (address). You may send written comments
about our performance in helping to meet community credit needs to
(name and address of official at bank) and the FDIC Regional
Director. You may also submit comments electronically through the
FDIC's Web site at www.fdic.gov/regulations/cra. Your letter,
together with any response by us, will be considered by the FDIC in
evaluating our CRA performance and may be made public.
You may ask to look at any comments received by the FDIC
Regional Director. You may also request from the FDIC Regional
Director an announcement of our applications covered by the CRA
filed with the FDIC. We are an affiliate of (name of holding
company), a bank holding company. You may request from the (title of
responsible official), Federal Reserve Bank of _______(address) an
announcement of applications covered by the CRA filed by bank
holding companies.
* * * * *
Dated: December 16, 2016.
Amy S. Friend,
Senior Deputy Comptroller and Chief Counsel.
By order of the Board of Governors of the Federal Reserve
System, December 28, 2016.
Robert deV. Frierson,
Secretary of the Board.
By order of the Board of Directors.
Dated at Washington, DC, this 16th day of December, 2016.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2016-31928 Filed 1-17-17; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P