[Federal Register Volume 84, Number 249 (Monday, December 30, 2019)]
[Rules and Regulations]
[Pages 71738-71740]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27288]



[[Page 71738]]

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

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Parts 25 and 195

[Docket ID OCC-2019-0025]
RIN 1557-AE72

FEDERAL RESERVE SYSTEM

12 CFR Part 228

[Regulation BB; Docket No. R-1690]
RIN 7100-AF 68

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 345

RIN 3064-AF20


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.

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

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).

DATES: Effective Date: January 1, 2020.

FOR FURTHER INFORMATION CONTACT: 
    OCC: Frances C. Augello, Special Counsel, Emily Boyes, Counsel, or 
Maria Riegger, Counsel, Chief Counsel's Office, (202) 649-5490; for 
persons who are deaf or hearing impaired, TTY, (202) 649-5597; or Vonda 
Eanes, Director for CRA and Fair Lending Policy, Compliance Risk Policy 
Division, (202) 649-5470, Office of the Comptroller of the Currency, 
400 7th Street SW, Washington, DC 20219.
    Board: Amal S. Patel, Counsel, (202) 912-7879, or Cathy Gates, 
Senior Project Manager, (202) 452-2099, Division of Consumer and 
Community Affairs; or Gavin L. Smith, Senior Counsel, (202) 452-3474, 
Legal Division, 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). At that time, 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 (OTS), 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 part 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 part 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\
---------------------------------------------------------------------------

    \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 in December 2018 and became effective January 1, 
2019. 83 FR 66601 (Dec. 27, 2018). 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 $1.284 billion 
are small banks or small savings associations. Small banks and small 
savings associations with assets of at least $321 million as of 
December 31 of both of the prior two calendar years and less than 
$1.284 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 2019, the CPI-W 
increased by 1.62 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, 2020, banks and savings 
associations that, as of December 31 of either of the prior two 
calendar years, had assets of less than $1.305 billion are small banks 
or small savings associations. Small banks and small savings 
associations with assets of at least $326 million as of December 31 of 
both of the prior two calendar years and less than $1.305 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 current and historical asset-size thresholds on the 
website 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

[[Page 71739]]

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. For 
this reason, 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, 2020. 
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.

Riegle Community Development and Regulatory Improvement Act of 1994

    Section 302 of the Riegle Community Development and Regulatory 
Improvement Act of 1994 (RCDRIA) (12 U.S.C. 4802) requires that each 
Federal banking agency, in determining the effective date and 
administrative compliance requirements for new regulations that impose 
additional reporting, disclosure, or other requirements on insured 
depository institutions (IDIs), consider, consistent with principles of 
safety and soundness and the public interest, any administrative 
burdens that such regulations would place on depository institutions, 
including small depository institutions, and customers of depository 
institutions, as well as the benefits of such regulations.\4\ In 
addition, new regulations and amendments to regulations that impose 
additional reporting, disclosures, or other new requirements on IDIs 
generally must take effect on the first day of a calendar quarter that 
begins on or after the date on which the regulations are published in 
final form.\5\
---------------------------------------------------------------------------

    \4\ 12 U.S.C. 4802(a).
    \5\ 12 U.S.C. 4802(b).
---------------------------------------------------------------------------

    Because the final rule does not impose additional reporting, 
disclosure, or other requirements on IDIs, section 302 of RCDRIA does 
not apply. Nevertheless, the requirements of section 302 of RCDRIA, and 
the administrative burdens and benefits of the final rule, were 
considered as part of the overall rulemaking process.

Congressional Review Act

FDIC

    For purposes of Congressional Review Act, the OMB makes a 
determination as to whether a final rule constitutes a ``major'' 
rule.\6\ If a rule is deemed a ``major rule'' by the OMB, the 
Congressional Review Act generally provides that the rule may not take 
effect until at least 60 days following its publication.\7\
---------------------------------------------------------------------------

    \6\ 5 U.S.C. 801 et seq.
    \7\ 5 U.S.C. 801(a)(3).
---------------------------------------------------------------------------

    The Congressional Review Act defines a ``major rule'' as any rule 
that the Administrator of the Office of Information and Regulatory 
Affairs of the OMB finds has resulted in or is likely to result in--(A) 
an annual effect on the economy of $100,000,000 or more; (B) a major 
increase in costs or prices for consumers, individual industries, 
Federal, State, or local government agencies or geographic regions, or 
(C) significant adverse effects on competition, employment, investment, 
productivity, innovation, or on the ability of United States-based 
enterprises to compete with foreign-based enterprises in domestic and 
export markets.\8\ As required by the Congressional Review Act, the 
FDIC will submit the final rule and other appropriate reports to 
Congress and the Government Accountability Office for review.
---------------------------------------------------------------------------

    \8\ 5 U.S.C. 804(2).
---------------------------------------------------------------------------

OCC

    Pursuant to the Congressional Review Act, OMB's Office of 
Information and Regulatory Affairs designated this rule as not a 
``major rule,'' as defined at 5 U.S.C. 804(2). As required by the 
Congressional Review Act, the OCC will submit the final rule and other 
appropriate reports to Congress and the Government Accountability 
Office for review.

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.

[[Page 71740]]

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. Section 25.12 is amended by revising paragraph (u)(1) to read as 
follows:


Sec.  25.12   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 $1.305 
billion. Intermediate small bank means a small bank with assets of at 
least $326 million as of December 31 of both of the prior two calendar 
years and less than $1.305 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 $1.305 billion. Intermediate small 
savings association means a small savings association with assets of at 
least $326 million as of December 31 of both of the prior two calendar 
years and less than $1.305 billion as of December 31 of either of the 
prior two calendar years.
* * * * *

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
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 (u)(1) to read as 
follows:


Sec.  228.12   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 $1.305 
billion. Intermediate small bank means a small bank with assets of at 
least $326 million as of December 31 of both of the prior two calendar 
years and less than $1.305 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
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 $1.305 
billion. Intermediate small bank means a small bank with assets of at 
least $326 million as of December 31 of both of the prior two calendar 
years and less than $1.305 billion as of December 31 of either of the 
prior two calendar years.
* * * * *

    Dated: December 11, 2019.
Jonathan V. Gould,
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 11, 2019.
Ann E. Misback,
Secretary of the Board.

    Dated at Washington, DC, December 11, 2019.

Federal Deposit Insurance Corporation.
Annmarie H. Boyd,
Assistant Executive Secretary.
[FR Doc. 2019-27288 Filed 12-27-19; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P