[Federal Register Volume 84, Number 192 (Thursday, October 3, 2019)]
[Proposed Rules]
[Pages 52834-52835]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21323]


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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 390

RIN 3064-AF07


Removal of Transferred OTS Regulation Regarding Deposits

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice of proposed rulemaking; supplemental notice.

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SUMMARY: On August 26, 2019, the Federal Deposit Insurance Corporation 
(FDIC) issued a notice of proposed rulemaking with request for comments 
on proposed revisions to its regulations relating to deposits that 
apply to State savings associations. The FDIC is supplementing that 
notice of proposed rulemaking with an updated regulatory flexibility 
analysis to reflect changes to the Small Business Administration's 
monetary-based size standards, which were adjusted for inflation as of 
August 19, 2019.

DATES: Comments on the updated regulatory flexibility analysis must be 
received on or before November 4, 2019.

ADDRESSES: You may submit comments by any of the following methods:
     FDIC Website: https://www.fdic.gov/regulations/laws/federal/. Follow instructions for submitting comments on the agency 
website.
     Email: [email protected]. Include RIN 3064-AF07on the 
subject line of the message.
     Mail: Robert E. Feldman, Executive Secretary, Attention: 
Comments, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
     Hand Delivery to FDIC: Comments may be hand-delivered to 
the guard station at the rear of the 550 17th Street Building (located 
on F Street) on business days between 7 a.m. and 5 p.m.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    Please include your name, affiliation, address, email address, and 
telephone number(s) in your comment. All statements received, including 
attachments and other supporting materials, are part of the public 
record and are subject to public disclosure. You should submit only 
information that you wish to make publicly available.
    Public Inspection: All comments received will be posted generally 
without change to https://www.fdic.gov/regulations/laws/federal/, 
including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Ryan T. Singer, Chief, Regulatory 
Analysis Section, Division of Insurance and Research, (202) 898-7352, 
[email protected]; Laura J. McNulty, Counsel, Legal Division, (202-898-
3817), [email protected]; Jennifer M. Jones, Counsel, Legal Division, 
(202) 898-6768, [email protected].

SUPPLEMENTARY INFORMATION: On August 26, 2019, the FDIC issued a notice 
of proposed rulemaking with request for comments on proposed revisions 
to its regulations relating to deposits that apply to State savings 
associations. (See 84 FR 44558 (August 26, 2019).) The FDIC is 
supplementing that notice of proposed rulemaking with an updated 
regulatory flexibility analysis to reflect changes to the Small 
Business Administration's monetary-based size standards, which were 
adjusted for inflation as of August 19, 2019. (See 84 FR 34261 (July 
18, 2019).)

Updated Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires that, in connection 
with a notice of proposed rulemaking, an agency prepare and make 
available for public comment an initial regulatory flexibility analysis 
that describes the impact of the proposed rule on small entities.\1\ 
However, a regulatory flexibility analysis is not required if the 
agency certifies that the rule will not have a significant economic 
impact on a substantial number of small entities, and publishes its 
certification and a short explanatory statement in the Federal 
Register, together with the rule. The Small Business Administration 
(SBA) has defined ``small entities'' to include banking organizations 
with total assets of less than or equal to $600 million.\2\ Generally, 
the FDIC considers a significant effect to be a quantified

[[Page 52835]]

effect in excess of 5 percent of total annual salaries and benefits per 
institution, or 2.5 percent of total noninterest expenses. The FDIC 
believes that effects in excess of these thresholds typically represent 
significant effects for FDIC-supervised institutions. For the reasons 
provided below, the FDIC certifies that the proposed rule, if adopted 
in final form, would not have a significant economic impact on a 
substantial number of small banking organizations. Accordingly, a 
regulatory flexibility analysis is not required.
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    \1\ 5 U.S.C. 601, et seq.
    \2\ The SBA defines a small banking organization as having $600 
million or less in assets, where ``a financial institution's assets 
are determined by averaging the assets reported on its four 
quarterly financial statements for the preceding year.'' See 13 CFR 
121.201 (as amended by 84 FR 34261, effective August 19, 2019). 
``SBA counts the receipts, employees, or other measure of size of 
the concern whose size is at issue and all of its domestic and 
foreign affiliates.'' See 13 CFR 121.103. Following these 
regulations, the FDIC uses a covered entity's affiliated and 
acquired assets, averaged over the preceding four quarters, to 
determine whether the FDIC-supervised institution is ``small'' for 
purposes of the RFA.
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    As of March 31, 2019, the FDIC supervised 3,465 insured depository 
institutions, of which 2,705 are considered small banking organizations 
for purposes of the RFA. The proposed rule primarily affects 
regulations that govern State savings associations. There are 36 State 
savings associations considered to be small banking organizations for 
purposes of the RFA.\3\
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    \3\ Based on data from the March 31, 2019, Call Report and 
Report of Assets and Liabilities of U.S. Branches and Agencies of 
Foreign Banks.
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    The proposed rule would remove Sec. Sec.  390.230 and 390.231, part 
390, subpart M, because these sections are unnecessary, redundant of, 
or otherwise duplicative of other statutes and regulations, including 
safety and soundness standards. Therefore, rescinding subpart M would 
not have any substantive effects on small FDIC-supervised institutions.
    Based on the information above, the FDIC certifies that the 
proposed rule would not have a significant economic impact on a 
substantial number of small entities. The FDIC invites comments on all 
aspects of the supporting information provided in this RFA section. In 
particular, would this rule have any significant effects on small 
entities that the FDIC has not identified?

Federal Deposit Insurance Corporation.

    Dated at Washington, DC, on September 26, 2019.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2019-21323 Filed 10-2-19; 8:45 am]
 BILLING CODE 6714-01-P