[Federal Register Volume 90, Number 141 (Friday, July 25, 2025)]
[Proposed Rules]
[Pages 35241-35251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-14060]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 90, No. 141 / Friday, July 25, 2025 /
Proposed Rules
[[Page 35241]]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Chapter I
[Docket ID OCC-2023-0016]
FEDERAL RESERVE SYSTEM
12 CFR Chapter II
[Docket No. OP-1828]
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Chapter III
RIN 3064-ZA39
Regulatory Publication and Review Under the Economic Growth and
Regulatory Paperwork Reduction Act of 1996
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury;
Board of Governors of the Federal Reserve System (Board); Federal
Deposit Insurance Corporation (FDIC).
ACTION: Regulatory review; request for comments.
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SUMMARY: Pursuant to the Economic Growth and Regulatory Paperwork
Reduction Act of 1996 (EGRPRA), the OCC, Board, and FDIC (collectively,
the agencies) are reviewing agency regulations to identify outdated or
otherwise unnecessary regulatory requirements on insured depository
institutions and their holding companies. Since February 2024, the
agencies published three Federal Register documents requesting comment
on multiple categories of regulations. This fourth Federal Register
document requests comment on the final three categories of regulations:
Banking Operations, Capital, and the Community Reinvestment Act, and
agency rules issued in final form as of July 25, 2025, including those
covered by the three prior documents.
DATES: Written comments must be received no later than October 23,
2025.
ADDRESSES: Comments should be directed to:
OCC: Commenters are encouraged to submit comments through the
Federal eRulemaking Portal. Please use the title ``Regulatory
Publication and Review Under the Economic Growth and Regulatory
Paperwork Reduction Act of 1996'' to facilitate the organization and
distribution of the comments. You may submit comments by any of the
following methods:
Federal eRulemaking Portal--Regulations.gov:
Go to https://regulations.gov/. Enter ``Docket ID OCC-2023-0016''
in the Search Box and click ``Search.'' Public comments can be
submitted via the ``Comment'' box below the displayed document
information or by clicking on the document title and then clicking the
``Comment'' box on the top-left side of the screen. For help with
submitting effective comments, please click on ``Commenter's
Checklist.'' For assistance with the Regulations.gov site, please call
1-866-498-2945 (toll free) Monday-Friday, 9 a.m.-5 p.m. ET, or email
[email protected].
Mail: Chief Counsel's Office, Attention: Comment
Processing, Office of the Comptroller of the Currency, 400 7th Street
SW, Suite 3E-218, Washington, DC 20219.
Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
Instructions: You must include ``OCC'' as the agency name and
``Docket ID OCC-2023-0016'' in your comment. In general, the OCC will
enter all comments received into the docket and publish the comments on
the Regulations.gov website without change, including any business or
personal information provided such as name and address information,
email addresses, or phone numbers. Comments received, including
attachments and other supporting materials, are part of the public
record and subject to public disclosure. Do not include any information
in your comment or supporting materials that you consider confidential
or inappropriate for public disclosure.
You may review comments and other related materials that pertain to
this action by the following method:
Viewing Comments Electronically--Regulations.gov:
Go to https://regulations.gov/. Enter ``Docket ID OCC-2023-0016''
in the Search Box and click ``Search.'' Click on the ``Dockets'' tab
and then the document's title. After clicking the document's title,
click the ``Browse All Comments'' tab. Comments can be viewed and
filtered by clicking on the ``Sort By'' drop-down on the right side of
the screen or the ``Refine Comments Results'' options on the left side
of the screen. Supporting materials can be viewed by clicking on the
``Browse Documents'' tab. Click on the ``Sort By'' drop-down on the
right side of the screen or the ``Refine Results'' options on the left
side of the screen checking the ``Supporting & Related Material''
checkbox. For assistance with the Regulations.gov site, please call 1-
866-498-2945 (toll free) Monday-Friday, 9 a.m.-5 p.m. ET, or email
[email protected].
The docket may be viewed after the close of the comment period in
the same manner as during the comment period.
Board: You may submit comments, identified by Docket No. OP-1828 by
any of the following methods:
Agency Website: https://www.federalreserve.gov. Follow the
instructions for submitting comments at https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Email: [email protected]. Include the
docket number in the subject line of the message.
Fax: 202-452-3819 or 202-452-3102.
Mail: Ann E. Misback, Secretary, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue NW,
Washington, DC 20551.
Public Inspection: In general, all public comments will be made
available on the Board's website at www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted, and will not be modified to remove
confidential, contact or any identifiable information. Public comments
may also be viewed electronically or in paper in Room M-4365A, 2001 C
Street NW, Washington, DC 20551, between 9 a.m. and 5 p.m. during
Federal business weekdays. For security reasons, the Board requires
that visitors make an
[[Page 35242]]
appointment to inspect comments by calling (202) 452-3684. Upon
arrival, visitors will be required to present valid government-issued
photo identification and to submit to security screening in order to
inspect and photocopy comments. For users of TTY-TRS, please call 711
from any telephone, anywhere in the United States.
FDIC: You may submit comments, identified by ``EGRPRA,'' 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 EGRPRA in the subject
line of the message.
Mail: Jennifer M. Jones, Deputy Executive Secretary,
Attention: Comments--EGRPRA, 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 NW building
(located on F Street) on business days between 7 a.m. and 5 p.m.
Public Inspection: Comments received, including any
personal information provided, may be posted without change to https://www.fdic.gov/resources/regulations/federal-register-publications/.
Commenters should submit only information that the commenter wishes to
make available publicly. The FDIC may review, redact, or refrain from
posting all or any portion of any comment that it may deem to be
inappropriate for publication, such as irrelevant or obscene material.
The FDIC may post only a single representative example of identical or
substantially identical comments, and in such cases will generally
identify the number of identical or substantially identical comments
represented by the posted example. All comments that have been
redacted, as well as those that have not been posted, that contain
comments on the merits of the proposed rule will be retained in the
public comment file and will be considered as required under all
applicable laws. All comments may be accessible under the Freedom of
Information Act.
FOR FURTHER INFORMATION CONTACT:
OCC: Allison Hester-Haddad, Special Counsel, Daniel Amodeo,
Counsel, or John Cooper, Counsel, Chief Counsel's Office (202) 649-
5490, Office of the Comptroller of the Currency, 400 7th Street SW,
Washington, DC 20219. If you are deaf, hard of hearing, or have a
speech disability, please dial 7-1-1 to access telecommunications relay
services.
Board: Katie Ballintine, Assistant Director, (202) 452-2555, and
Colton Hamming, Financial Institution Policy Analyst III, (202) 452-
3932, Division of Supervision and Regulation; Mandie Aubrey, Senior
Counsel, (202) 452-2595, Division of Consumer and Community Affairs;
Jay Schwarz, Deputy Associate General Counsel, (202) 452-2970, David
Cohen, Counsel, (202) 452-5259, and Vivien Lee, Attorney, (202) 452-
2029, Legal Division, Board of Governors of the Federal Reserve System,
20th Street and Constitution Avenue NW, Washington, DC 20551. For users
of TTY-TRS, please call 711 from any telephone, anywhere in the United
States.
FDIC: Ryan C. Senegal, Chief, Policy & Program Development Section,
(980) 249-3863, Division of Risk Management Supervision; or William
Piervincenzi, Supervisory Counsel, (202) 898-6957, Legal Division.
SUPPLEMENTARY INFORMATION:
I. Introduction
Section 2222 of EGRPRA \1\ requires that not less frequently than
once every 10 years, the Federal Financial Institutions Examination
Council (FFIEC) \2\ and the agencies \3\ conduct a review of their
regulations to identify outdated or otherwise unnecessary regulatory
requirements imposed on insured depository institutions. In conducting
this review, the FFIEC or the agencies will (a) categorize their
regulations by type and (b) at regular intervals, provide notice and
solicit public comment on categories of regulations, requesting
commenters to identify areas of regulations that are outdated,
unnecessary, or unduly burdensome.\4\
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\1\ 12 U.S.C. 3311.
\2\ The FFIEC is an interagency body empowered to prescribe
uniform principles, standards, and report forms for the Federal
examination of financial institutions and to make recommendations to
promote uniformity in the supervision of financial institutions. The
FFIEC does not issue regulations that impose burden on financial
institutions and, therefore, we have not separately captioned the
FFIEC in this document.
\3\ The FFIEC is comprised of the OCC, Board, FDIC, National
Credit Union Administration (NCUA), Consumer Financial Protection
Bureau (CFPB), and State Liaison Committee. Of these, only the OCC,
Board, and FDIC are statutorily required to undertake the EGRPRA
review. The NCUA elected to participate in the first and second
EGRPRA reviews, and the NCUA Board again has elected to participate
in this review process.
Consistent with its approach during the first and second EGRPRA
reviews, NCUA will separately issue documents and requests for
comment on its rules. The CFPB is required to review its significant
rules and publish a report of its review no later than five years
after they take effect. See 12 U.S.C. 5512(d). This process is
separate from the EGRPRA process.
\4\ Insured depository institutions are also subject to
regulations that are not reviewed under the EGRPRA process because
they were not prescribed by the agencies. Examples include rules for
which rulemaking authority was transferred to the CFPB and anti-
money laundering regulations issued by the Department of the
Treasury's Financial Crimes Enforcement Network, among others. If,
during the EGRPRA process, the agencies receive a comment about a
regulation that is not subject to the EGRPRA review, we will forward
that comment to the appropriate agency.
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The EGRPRA also requires the FFIEC or the agencies to publish in
the Federal Register a summary of the comments received, identifying
significant issues raised and commenting on those issues. It also
directs the agencies to eliminate unnecessary regulations, as
appropriate. Finally, the statute requires the FFIEC to submit a report
to Congress that summarizes any significant issues raised in the public
comments and the relative merits of those issues. The report must
include an analysis of whether the agencies are able to address the
regulatory burdens associated with such issues or whether those burdens
must be addressed by legislative action.
II. The EGRPRA Review's Targeted Focus
The EGRPRA regulatory review provides an opportunity for the public
and the agencies to evaluate groups of related regulations and to
identify opportunities for burden reduction.\5\ For example, the EGRPRA
review may facilitate the identification of statutes and regulations
that share similar goals or complementary methods where one or more
agencies could eliminate the overlapping regulatory requirements.
Alternatively, commenters may identify regulations or statutes that
impose requirements that are no longer consistent with current business
practices and may warrant revision or elimination.
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\5\ See supra note 1.
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The EGRPRA review also provides the agencies and the public with an
opportunity to consider how to reduce the impact of regulations on
community banks or their holding companies. The agencies are aware of
the role that these institutions play in providing consumers and
businesses across the nation with essential financial services and
access to credit. The agencies are especially concerned about the
impact of requirements for these smaller institutions. The agencies
understand that when a new regulation is issued or a current regulation
is amended, smaller institutions may have to devote a significant
amount of their resources to determine if and how the regulation will
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affect them. Through the public comment process, the EGRPRA review can
help the agencies identify and target regulatory changes to reduce
impacts for those smaller institutions.
Burden reduction must be compatible with consumer protection and
the safety and soundness of insured depository institutions, their
affiliates, and the financial system as a whole. Burden reduction also
must be consistent with the agencies' statutory mandates, many of which
require the issuance of regulations. EGRPRA recognizes that effective
burden reduction may require statutory changes. Accordingly, as part of
this review, the agencies specifically ask the public to comment on the
relationship among burden reduction, regulatory requirements, policy
objectives, and statutory mandates. The agencies also seek quantitative
data about the impact of rules, where available.
The agencies note that they must consider regulatory burden each
time an agency proposes, adopts, or amends a rule. For example, under
the Paperwork Reduction Act of 1995 \6\ and the Regulatory Flexibility
Act,\7\ the agencies assess each rulemaking with respect to the burdens
the rule might impose. The agencies also invite the public to comment
on proposed rules as required by the Administrative Procedure Act.\8\
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\6\ 44 U.S.C. 3501-3521.
\7\ 5 U.S.C. 610.
\8\ 5 U.S.C. 551-559.
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III. The EGRPRA Review Process
Taken together for purposes of the EGRPRA review process, the
agencies' regulations covering insured depository institutions
encompass more than 100 subjects.\9\ Consistent with the EGRPRA statute
and past practice, the agencies have grouped these regulations into the
following 12 categories listed in alphabetical order: Applications and
Reporting; Banking Operations; Capital; Community Reinvestment Act;
Consumer Protection; \10\ Directors, Officers and Employees;
International Operations; Money Laundering; Powers and Activities;
Rules of Procedure; Safety and Soundness; and Securities. These
categories were used during the prior EGRPRA reviews. The agencies
determined the categories by sorting the regulations by type and sought
to have no category be too large or broad. These categories remain
useful for the review, and the agencies have not modified the
categories for purposes of this review.
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\9\ Consistent with EGRPRA's focus on reducing burden on insured
depository institutions, the agencies have not included their
internal, organizational, or operational regulations in this review.
These regulations impose minimal, if any, burden on insured
depository institutions.
\10\ The agencies are seeking comment only on consumer
protection regulations for which they retain rulemaking authority
for insured depository institutions and holding companies under the
Dodd-Frank Wall Street Reform and Consumer Protection Act, Public
Law 111-203, 124 Stat. 1376 (2010) (Dodd-Frank Act).
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To carry out the EGRPRA review, the agencies have now published
four Federal Register documents with each addressing three categories
of rules. Each Federal Register document provided a 90-day comment
period. On February 6, 2024, the agencies published the first document,
addressing the following categories of regulations: Applications and
Reporting; Powers and Activities; and International Operations.\11\ On
August 1, 2024, the agencies published a second document, addressing
Consumer Protection, Directors, Officers and Employees, and Money
Laundering.\12\ On December 11, 2024, the agencies published a third
document addressing Rules of Procedure; Safety and Soundness; and
Securities.\13\ Today, the agencies are publishing the fourth document
addressing the categories of Banking Operations, Capital, and the
Community Reinvestment Act.\14\ The agencies invite the public to
identify outdated, unnecessary, or unduly burdensome regulatory
requirements for insured depository institutions and their holding
companies in these three categories and any other rules finalized by
the agencies as of July 25, 2025.
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\11\ 89 FR 8084 (Feb. 6, 2024).
\12\ 89 FR 62679 (Aug. 1, 2024).
\13\ 89 FR 99751 (Dec. 11, 2024).
\14\ With respect to the Community Reinvestment Act regulations,
the agencies invite public comment on the legacy CRA regulations.
See discussion of the Interagency 2023 CRA rule, infra.
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To assist the public's understanding of how the agencies have
organized the EGRPRA review, the agencies have prepared a chart that
lists the categories of regulations for which the agencies are
requesting comments. The chart's left column divides the categories
into specific subject-matter areas. The headings at the top of the
chart identify the types of institutions affected by the regulations.
The agencies will review the comments received and determine
whether further action is appropriate with respect to the regulations.
The agencies will consult and coordinate with each other and expect
generally to make this determination jointly, as appropriate, in the
case of rules that have been issued on an interagency basis. Similarly,
as appropriate, the agencies will coordinate to amend or repeal those
rules on an interagency basis. For rules issued by a single agency, the
issuing agency will review the comments received and independently
determine whether amendments to or repeal of its rules are appropriate.
Further, as part of the EGRPRA review, the agencies are holding a
series of public outreach meetings to provide an opportunity for
bankers, consumer and community groups, and other interested parties to
present their views directly to senior management and staff of the
agencies. More information about the outreach meetings can be found on
the agencies' EGRPRA website, https://egrpra.ffiec.gov.
IV. Request for Comments on Regulations in the Banking Operations,
Capital, and Community Reinvestment Categories and on Any Rules
Finalized by the Agencies as of July 25, 2025
The agencies are requesting comment on regulations in the Banking
Operations, Capital, and the Community Reinvestment Act categories to
identify outdated, unnecessary, or unduly burdensome requirements for
insured depository institutions and their holding companies. The
agencies seek comment on all rules finalized by the agencies as of July
25, 2025. In addition to comments on regulations in these categories
generally, the agencies are requesting comments on certain specific
regulations described below within these categories issued since the
last EGRPRA review. Where possible, the agencies ask commenters to cite
to specific regulatory language or provisions. The agencies also
welcome suggested alternative provisions or language in support of a
comment, where appropriate. The agencies will consider comments
submitted anonymously.
Specific Issues for Commenters to Consider
The agencies specifically invite comment on the following issues as
they pertain to the agencies' Banking Operations, Capital, and the
Community Reinvestment Act rules addressed in this document. The
agencies have asked these same questions for each document issued in
connection with the EGRPRA process and invite comments on these
questions for the categories in the previous EGRPRA documents.
Need and purpose of the regulations.
[cir] Question 1: Have there been changes in the financial services
industry, consumer behavior, or other circumstances that cause any
regulations in these categories to be outdated, unnecessary, or unduly
burdensome? If so, please identify the
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regulations, provide any available quantitative analyses or data, and
indicate how the regulations should be amended.
[cir] Question 2: Do any of these regulations impose burdens not
required by their underlying statutes? If so, please identify the
regulations and indicate how they should be amended.
Overarching approaches/flexibilities.
[cir] Question 3: With respect to the regulations in these
categories, could an agency use a different regulatory approach to
lessen the burden of the regulations and achieve statutory intent?
[cir] Question 4: Do any of these rules impose unnecessarily
inflexible requirements? If so, please identify the regulations and
indicate how they should be amended.
Cumulative effects.
[cir] Question 5: Looking at the regulations in a category as a
whole, are there any requirements that are redundant, inconsistent, or
overlapping in such a way that taken together, impose an unnecessary
burden that could potentially be addressed? If so, please identify
those regulations, provide any available quantitative analyses or data,
and indicate how the regulations should be amended.
[cir] Question 6: Have the agencies issued similar regulations in
the same area that should be considered together as bodies of
regulation, when assessing the cumulative effects on an insured
depository institution or holding company? If so, please identify the
regulations, why they should be considered together, and any available
analyses or data for the agencies' consideration.
[cir] Question 7: Could any regulations or category of regulations
be streamlined or simplified to reduce unduly burdensome or duplicative
regulatory requirements?
Effect on competition.
[cir] Question 8: Do any of the regulations in these categories
create competitive disadvantages for one part of the financial services
industry compared to another or for one type of insured depository
institution compared to another? If so, please identify the regulations
and indicate how they should be amended.
Reporting, recordkeeping, and disclosure requirements.
[cir] Question 9: Do any of the regulations in these categories
impose outdated, unnecessary, or unduly burdensome reporting,
recordkeeping, or disclosure requirements on insured depository
institutions or their holding companies?
[cir] Question 10: Could an insured depository institution or its
holding company fulfill any of these requirements through new
technologies (if they are not already permitted to do so) and
experience a burden reduction? If so, please identify the regulations
and indicate how they should be amended.
Unique characteristics of a type of institution.
[cir] Question 11: Do any of the regulations in these categories
impose requirements that are unwarranted by the unique characteristics
of a particular type of insured depository institution or holding
company? If so, please identify the regulations and indicate how they
should be amended.
Clarity.
[cir] Question 12: Are the regulations in these categories clear
and easy to understand?
[cir] Question 13: Are there specific regulations for which
clarification is needed? If so, please identify the regulations and
indicate how they should be amended.
Impact to community banks and other small, insured
depository institutions.
[cir] Question 14: Are there regulations in these categories that
impose outdated, unnecessary, or unduly burdensome requirements on a
substantial number of community banks, their holding companies, or
other small, insured depository institutions or holding companies?
[cir] Question 15: Have the agencies issued regulations pursuant to
a common statute that, as applied by the agencies, create redundancies
or impose inconsistent requirements?
[cir] Question 16: Should any of these regulations issued pursuant
to a common statute be amended or repealed to minimize this impact? If
so, please identify the regulations and indicate how they should be
amended.
[cir] Question 17: Have the effects of any regulations in these
categories changed over time that now have a significant economic
impact on a substantial number of small, insured depository
institutions or holding companies? If so, please identify the
regulations and indicate how they should be amended. The agencies seek
information on (1) the continued need for the rule; (2) the complexity
of the rule; (3) the extent to which the rule overlaps, duplicates or
conflicts with other Federal rules, and, to the extent feasible, with
State and local governmental rules; and (4) the degree to which
technology, economic conditions, or other factors have changed in the
area affected by the rule.
Scope of rules.
[cir] Question 18: Is the scope of each rule in these categories
consistent with the intent of the underlying statute(s)?
[cir] Questions 19: Could the agencies amend the scope of a rule to
clarify its applicability or reduce the burden, while remaining
faithful to statutory intent? If so, please identify the regulations
and indicate how they should be amended.
Specific Interagency Regulations Issued Since the Last EGRPRA Review
Simplifications to the Regulatory Capital Rule Pursuant to
the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) of
1996. In July 2019, consistent with the goals of the EGRPRA, the
agencies finalized rules that simplified certain aspects of the
regulatory capital requirements for banking organizations with less
than $250 billion in total consolidated assets or $10 billion in total
consolidated foreign financial exposure.\15\ Specifically, this rule
(1) simplified the regulatory capital treatment for mortgage servicing
assets, temporary difference deferred tax assets, and holdings of
regulatory capital instruments issued by other financial institutions
and (2) simplified the calculation for limitations on minority interest
includable in regulatory capital. Initially, the simplified
requirements were to become effective on April 1, 2020. However, in
November 2019, the agencies issued a subsequent notice to allow banking
organizations to begin using the simplified requirements on January 1,
2020.\16\ Banking organizations that chose not to adopt the
simplifications on the earlier timetable were still permitted to wait
until April 1, 2020, to implement the requirements.
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\15\ 84 FR 35234 (July 22, 2019).
\16\ 84 FR 61804 (Nov. 13, 2019).
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Community Bank Leverage Ratio. In November 2019, the
agencies implemented section 201 of the Economic Growth, Regulatory
Relief, and Consumer Protection Act (EGRRCPA)\17\ by revising their
respective regulatory capital rules to provide a simplified measure of
capital adequacy for qualifying community banking organizations.\18\
Under this rule, banking organizations with less than $10 billion in
total consolidated assets that meet the qualifying criteria, including
maintaining leverage ratio greater than nine percent, may elect to use
the community bank leverage ratio
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framework. These banking organizations will be considered to have met
the capital requirements for the ``well capitalized'' category under
the agencies' prompt corrective action framework and will no longer be
subject to the generally applicable risk-based capital rule.
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\17\ See Economic Growth, Regulatory Relief, and Consumer
Protection Act, Public Law 115-174, 132 Stat. 1296 (2018).
\18\ 84 FR 61776 (Nov. 13, 2019), as corrected by 84 FR 70887
(Dec. 26, 2019), 85 FR 10968 (Feb. 26, 2020).
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Regulatory Capital Rule: Implementation and Transition of
the Current Expected Credit Losses Methodology for Allowances and
Related Adjustments to the Regulatory Capital Rule and Conforming
Amendments to Other Regulations. In February 2019, the agencies adopted
a final rule to address changes to credit loss accounting under U.S.
generally accepted accounting principles, including banking
organizations' implementation of the current expected credit losses
methodology (CECL).\19\ The final rule provides banking organizations
the option to phase in over a three-year period the day-one adverse
effects on regulatory capital that may result from the adoption of the
new accounting standard. In addition, the final rule revises the
agencies' regulatory capital rule, stress testing rules, and regulatory
disclosure requirements to reflect CECL, and makes conforming
amendments to other regulations that reference credit loss allowances.
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\19\ 84 FR 4222 (Feb. 14, 2019).
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Applicability Thresholds for Regulatory Capital and
Liquidity Requirements. In November 2019, the agencies published a
final rule to revise the framework for determining the applicability of
regulatory capital and standardized liquidity requirements for large
U.S. banking organizations, the U.S. intermediate holding companies
(IHC) of certain foreign banking organizations, and certain of their
depository institution subsidiaries.\20\
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\20\ 84 FR 59230 (Nov. 1, 2019).
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Capital Requirements for High Volatility Commercial Real
Estate (HVCRE) Exposures. In December 2019, the agencies implemented
section 214 of the EGRRCPA by revising the definition of HVCRE
exposure, which had the effect of limiting the scope of the heightened
risk weight applied to certain acquisition, development, and
construction lending exposures.\21\
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\21\ 84 FR 68019 (Dec. 13, 2019).
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Standardized Approach for Counterparty Credit Risk (SA-
CCR). In January 2020, the agencies published a final rule to provide
an updated framework for measuring the exposure amount of derivatives
contracts for the purpose of measuring their regulatory capital
requirements.\22\ The final rule replaced the current exposure
methodology (CEM) with the standardized approach for counterparty
credit risk for the largest and most complex banking organizations,
while permitting smaller banks to use either CEM or SA-CCR. SA-CCR is a
more risk-sensitive approach that better reflects industry practices
including margining for derivative contracts. Initially, the rule
provided that banking organizations would have the option of using the
SA-CCR beginning on April 1, 2020, and the largest, most complex
banking organizations would be required to use it on January 1, 2022.
The agencies issued a subsequent notice in March 2020 providing that
banks would be permitted to begin using SA-CCR for their first quarter
2020 Call Report filings.\23\ For the largest and most complex banking
organizations, mandatory use of SA-CCR would continue to be delayed
until January 1, 2022.
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\22\ 85 FR 4362 (Jan. 24, 2020), as corrected by 85 FR 57956
(Sept. 2020).
\23\ 85 FR 17721 (Mar. 31, 2020).
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Exclusion from the Supplementary Leverage Ratio
Calculation of Certain Central Bank Deposits for Banking Organizations
Predominantly Engaged in Custody, Safekeeping, and Asset Servicing
Activities. In January 2020, the agencies implemented section 402 of
the EGRRCPA by amending the supplementary leverage ratio, which is a
measure of capital adequacy that applies to large banking
organizations.\24\ Section 402 provides that the supplementary leverage
ratio must not take into account funds of a custodial bank that are
deposited with certain central banks, provided that any amount that
exceeds the value of deposits of the custodial bank that are linked to
fiduciary or custodial and safekeeping accounts must be taken into
account. Therefore, this rule, which became effective on April 1, 2020,
provides that custodial banks are permitted to exclude from their total
leverage exposure (the denominator of the supplementary leverage ratio)
the lesser of (1) deposits at central banks and (2) client deposits
linked to fiduciary or custodial and safekeeping accounts. Federal
Reserve Board regulations generally define ``custodial banking
organization'' to include a top-tier depository institution holding
company domiciled in the United States that has assets under custody
that are at least 30 times the amount of the depository institution
holding company's total assets.
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\24\ 85 FR 4569 (Jan. 27, 2020).
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Regulatory Capital Rule and Total Loss-Absorbing Capacity
Rule: Eligible Retained Income. In October 2020, the agencies adopted
revisions to a definition of eligible retained income made under the
interim final rule published in the Federal Register on March 20, 2020,
for all depository institutions, bank holding companies, and savings
and loan holding companies subject to the agencies' capital rule.\25\
The final rule revises the definition of eligible retained income to
make more gradual any automatic limitations on capital distributions
that could apply under the agencies' capital rule. Separately, in this
final rule, the Board also adopted as final the definition of eligible
retained income made under the interim final rule published in the
Federal Register on March 26, 2020, for purposes of the Board's total
loss-absorbing capacity (TLAC) rule. The final rule adopts these
interim final rules with no changes.
---------------------------------------------------------------------------
\25\ 85 FR 63423 (Oct. 8, 2020), as corrected 86 FR 3761 (Jan.
15, 2021).
---------------------------------------------------------------------------
Investments in Certain Unsecured Debt Instruments Issued
by Global Systemically Important U.S. Bank Holding Companies, Certain
Intermediate Holding Companies, and Global Systemically Important
Foreign Banking Organizations. In January 2021, the agencies published
a final rule that applies to advanced approaches banking organizations
(generally, the largest, most interconnected banking organizations)
with the aim of reducing both interconnectedness within the financial
system and systemic risks.\26\ The final rule requires advanced
approaches banking organizations to deduct from their regulatory
capital calculations certain investments in unsecured debt instruments
issued by foreign or U.S. global systemically important banking
organizations (GSIBs) for the purposes of meeting minimum total loss-
absorbing capacity requirements and, where applicable, long-term debt
requirements, or for investments in unsecured debt instruments issued
by GSIBs that are pari passu or subordinated to such debt instruments.
Under this rule, an advanced approaches banking organization may
exclude from deduction investments in certain covered debt instruments
up to five percent of its common equity tier 1 capital. Notably, use of
this exclusion is tailored, depending on whether the advanced
approaches banking organization is a U.S. GSIB. For U.S. GSIBs, the
exclusion is available only for investments in covered debt
[[Page 35246]]
instruments that are held in accordance with market making activities,
as identified using criteria from regulations implementing section 13
of the Bank Holding Company Act (commonly known as the Volcker Rule).
---------------------------------------------------------------------------
\26\ 86 FR 708 (Jan. 6, 2021).
---------------------------------------------------------------------------
Interagency 2023 CRA Rule. In October 2023, the agencies
jointly issued a final rule (Interagency 2023 CRA Rule) that amended
their regulations implementing the Community Reinvestment Act of 1977
to update how CRA activities qualify for consideration, where CRA
activities are considered, and how CRA activities are evaluated.\27\
The Interagency 2023 CRA Rule included an April 1, 2024, effective date
and transition provisions for most substantive provisions; however, the
rule has been challenged in litigation and is currently enjoined.\28\
As such, the agencies continue to assess banks' CRA performance under
the 1995 version of the CRA rules (legacy CRA regulations).\29\ On
March 28, 2025, the agencies announced their intention to issue a
proposal both to rescind the Interagency 2023 CRA Rule and reinstate
the CRA framework that existed prior to the Interagency 2023 CRA
Rule.\30\ Therefore, the agencies invite public comment on the legacy
CRA regulations.
---------------------------------------------------------------------------
\27\ 89 FR 6574 (Feb. 1, 2024).
\28\ See Texas Bankers Association v. Office of the Comptroller
of the Currency, No. 2:24-CV-025-Z-BR (N.D. Tex. 2024); see also
Texas Bankers Association v. Board of Governors of the Federal
Reserve System, No. 24-10367 (5th Cir. 2024).
\29\ The text of the legacy CRA regulations may be found: (i) in
the 2022, 2023, or 2024 bound versions of title 12 of the Code of
Federal Regulations; (ii) in the historical version of the
Electronic Code of Federal Regulations (eCFR) as of March 29, 2024;
or (iii) in appendix G of the Interagency 2023 CRA Rule as published
in the eCFR on February 1, 2024.
\30\ See Joint Press Release, Agencies Announce Intent to
Rescind 2023 Community Reinvestment Act Final Rule (March 28, 2025),
https://www.federalreserve.gov/newsevents/pressreleases/bcreg20250328a.htm; https://occ.gov/news-issuances/news-releases/2025/nr-ia-2025-26.html; https://www.fdic.gov/news/press-releases/2025/agencies-announce-intent-rescind-2023-community-reinvestment-act-final.
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Community Reinvestment Act (CRA) Supplemental Rule. In
March 2024, the agencies published an interim final rule and a final
rule that revised the applicability date of certain provisions of the
Interagency 2023 CRA Rule \31\ and made certain other technical
amendments to the Interagency 2023 CRA Rule and related
regulations.\32\
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\31\ See Interagency 2023 CRA Rule discussion, supra.
\32\ 89 FR 22060 (March 29, 2024). The supplemental rule
included technical amendments to the agencies' CRA sunshine
regulations, codified at 12 CFR parts 35 (OCC), 207 (Regulation G)
(Board), and 346 (FDIC). In addition, the supplemental rule included
technical amendments to the OCC's public welfare investment
regulation, codified at 12 CFR part 24, and the OCC's regulation
concerning conversions from mutual to stock form, codified at 12 CFR
part 192.
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Revisions to Remove Obsolete References in the CRA
Regulations. In December 2015, the agencies made technical edits to the
CRA regulations to remove obsolete references to the Office of Thrift
Supervision (OTS) and update cross-references to regulations
implementing certain Federal consumer financial laws.\33\
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\33\ 80 FR 81162 (Dec. 29, 2015).
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CRA Conforming Amendments Related to Home Mortgage
Disclosure Act (HMDA) Changes. In November 2017, the agencies published
a final rule that modified the definitions of ``home mortgage loan''
and ``consumer loan,'' related cross references, and the public file
content requirements to conform to revisions made by the Consumer
Financial Protection Bureau to Regulation C, which implements HMDA. The
final rule also removed obsolete references to the Neighborhood
Stabilization Program.\34\
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\34\ 82 FR 55734 (Nov. 24, 2017).
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Specific OCC Regulations Issued Since the Last EGRPRA Review
Assessment of Fees. In July 2014, the OCC published a
final rule that raised marginal assessments on national banks and
Federal savings associations with more than $40 billion in assets.\35\
This increase reflected new supervisory and regulatory initiatives that
required additional resources, especially for large bank supervision
and regulation. Marginal assessment rates for national banks and
Federal savings associations had not increased between 1995 and 2013,
and changes in 2008 lowered some large entities' marginal assessment
rates. In August 2019, the OCC issued a separate assessments final rule
in which it allowed banks that exit the jurisdiction of the OCC to
receive a refund of certain prospectively paid assessments.\36\
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\35\ 79 FR 38769 (July 9, 2014).
\36\ 84 FR 43475 (Aug. 21, 2019).
---------------------------------------------------------------------------
CRA Rescind and Replace Rule. In December 2021, the OCC
adopted a final CRA rule based largely on the agencies' 1995 CRA
rules.\37\ This action rescinded and replaced the CRA final rule
published by the OCC in June 2020, which updated and revised the OCC's
CRA rule and integrated the CRA regulations in 12 CFR parts 25
(national banks) and 195 (savings associations).\38\
---------------------------------------------------------------------------
\37\ 86 FR 71328 (Dec. 15, 2021).
\38\ 85 FR 34734 (June 5, 2020).
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Specific Board Regulations Issued Since the Last EGRPRA Review
Availability of Funds and Collection of Checks. In June
2017 and September 2018, the Board amended Regulation CC, Availability
of Funds and Collection of Checks, which implements the Expedited Funds
Availability Act of 1987 (EFA Act), the Check Clearing for the 21st
Century Act of 2003 (Check 21 Act), and the official staff commentary
to the regulation.\39\ Among other amendments, the Board modified the
current check collection and return requirements to reflect the
virtually all-electronic check collection and return environment and to
encourage all depositary banks to receive, and paying banks to send,
returned checks electronically, and included provisions to address
situations where there is a dispute as to whether a check has been
altered or was issued with an unauthorized signature, and the original
paper check is not available for inspection. The Board and CFPB also
amended Regulation CC in July 2019 and May 2024 to implement a
statutory requirement in the EFA Act to adjust the dollar amounts under
the EFA Act for inflation, incorporate the Economic Growth, Regulatory
Relief, and Consumer Protection Act (EGRRCPA) amendments, which include
extending coverage to American Samoa, the Commonwealth of the Northern
Mariana Islands, and Guam, and implement technical edits.\40\
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\39\ 82 FR 27552 (June 15, 2017); 83 FR 46849 (Sept. 17, 2018).
\40\ 84 FR 31687 (July 3, 2019), as corrected by 84 FR 45403
(Aug. 29, 2019); 89 FR 43737 (May 20, 2024).
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Collection of Checks and Other Items by Federal Reserve
Banks and Funds Transfers Through Fedwire. In November 2018 and June
2022, the Board published final amendments to Regulation J, collection
of checks and other items by Federal Reserve Banks and funds transfers
through the Fedwire funds service and the FEDNOW service.\41\ Among
other provisions, the amendments clarify and simplify certain
provisions in Regulation J, remove obsolete provisions, and align the
rights and obligations of sending banks, paying banks, and Federal
Reserve Banks with the Board's amendments to Regulation CC to reflect
the virtually all-electronic check collection and return environment.
Additionally, the Board published final provisions to govern funds
transfers through the Federal Reserve Banks' FedNow\SM\ Service and
changes and clarifications to regulations
[[Page 35247]]
governing the Fedwire Funds Service, to reflect the fact that the
Reserve Banks will be operating a second funds transfer service in
addition to the Fedwire Funds Service, as well as technical corrections
to regulations governing the check service.
---------------------------------------------------------------------------
\41\ 83 FR 61509 (Nov. 30, 2018); 87 FR 34350 (June 6, 2022).
---------------------------------------------------------------------------
Debit Card Interchange Fees and Routing. In October 2022,
the Board adopted a final rule that amends Regulation II to specify
that the requirement that each debit card transaction must be able to
be processed on at least two unaffiliated payment card networks applies
to card-not-present transactions, the requirement that debit card
issuers ensure that at least two unaffiliated networks have been
enabled to process a debit card transaction, and standardize and
clarify the use of certain terminology.\42\
---------------------------------------------------------------------------
\42\ 87 FR 61217 (Oct. 11, 2022).
---------------------------------------------------------------------------
Regulation D: Reserve Requirements of Depository
Institutions. In July 2023, the Board amended two sections of
Regulation D to conform the provisions to prior regulatory
amendments.\43\
---------------------------------------------------------------------------
\43\ 88 FR 45057 (July 14, 2023).
---------------------------------------------------------------------------
Supervision and Regulation Assessments of Fees for Bank
Holding Companies and Savings and Loan Holding Companies With Total
Consolidated Assets of $100 Billion or More. In December 2020, the
Board adopted a final rule to amend the Board's assessment rule,
Regulation TT, pursuant to Section 318 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (the Dodd-Frank Act), to address
amendments made by section 401 of the EGRRCPA.\44\ The final rule
raises the minimum threshold for being considered an assessed company
from $50 billion to $100 billion in total consolidated assets for bank
holding companies and savings and loan holding companies and adjusts
the amount charged to assessed companies with total consolidated assets
between $100 billion and $250 billion to reflect changes in supervisory
and regulatory responsibilities resulting from EGRRCPA.
---------------------------------------------------------------------------
\44\ 85 FR 78949 (Dec. 8, 2020).
---------------------------------------------------------------------------
Total Loss-Absorbing Capacity, Long-Term Debt, and Clean
Holding Company Requirements for Systemically Important U.S. Bank
Holding Companies and Intermediate Holding Companies of Systemically
Important Foreign Banking Organizations. In January 2017, the Board
adopted a final rule to require a U.S. top-tier bank holding company
identified under the Board's rules as a global systemically important
bank holding company (covered BHC) to maintain outstanding a minimum
amount of loss-absorbing instruments, including a minimum amount of
unsecured long-term debt.\45\ In addition, the final rule prescribes
certain additional buffers, the breach of which would result in
limitations on the capital distributions and discretionary bonus
payments of a covered BHC. The final rule applies similar requirements
to the top-tier U.S. intermediate holding company of a global
systemically important foreign banking organization with $50 billion or
more in U.S. non-branch assets (covered IHC). The final rule also
imposes restrictions on other liabilities that a covered BHC or covered
IHC may have outstanding in order to improve their resolvability and
resiliency; these restrictions are referred to in the final rule as
``clean holding company requirements.''
---------------------------------------------------------------------------
\45\ 82 FR 8266 (Jan. 24, 2017).
---------------------------------------------------------------------------
Amendments to the Capital, Capital Plan, and Stress Test
Rules. In February 2017 and March 2020, the Board adopted final rules
amending the Board's regulatory capital rule, capital plan rule, stress
test rules, and Stress Testing Policy Statement.\46\ Among other
changes, the rules simplify the Board's capital framework while
preserving capital requirements for large firms and integrates the
capital rule with the Comprehensive Capital Analysis and Review (CCAR)
through the establishment of the stress capital buffer requirement.
Through the integration of the capital rule and CCAR, the final rule
removed redundant elements of the current capital and stress testing
frameworks that currently operate in parallel rather than together,
including the CCAR quantitative objection and the assumption that a
banking organization makes all capital actions under stress.
---------------------------------------------------------------------------
\46\ 82 FR 9308 (Feb. 3, 2017); 85 FR 15576 (Mar. 18. 2020).
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Capital Planning and Stress Testing Requirements for Large
Bank Holding Companies, Intermediate Holding Companies and Savings and
Loan Holding Companies. In February 2021, the Board adopted a final
rule to tailor the requirements in the Board's capital plan rule based
on risk.\47\ Specifically, as indicated in the Board's October 2019
rulemaking that updated the prudential framework for large bank holding
companies and U.S. intermediate holding companies of foreign banking
organizations (tailoring framework), the final rule modifies the
capital planning, regulatory reporting, and stress capital buffer
requirements for firms subject to ``Category IV'' standards under that
framework. To be consistent with recent changes to the Board's stress
testing rules, the final rule made other changes to the Board's stress
testing rules, Stress Testing Policy Statement, and regulatory
reporting requirements, such as the assumptions relating to business
plan changes and capital actions and the publication of company-run
stress test results for savings and loan holding companies. The final
rule also applied the capital planning and stress capital buffer
requirements to covered saving and loan holding companies subject to
Category II, Category III, and Category IV standards under the
tailoring framework.
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\47\ 86 FR 7927 (Feb. 3, 2021), as corrected by 86 FR 9261 (Feb.
12., 2021).
---------------------------------------------------------------------------
Regulatory Capital Rules: Risk-Based Capital Requirements
for Depository Institution Holding Companies Significantly Engaged in
Insurance Activities. In October 2023, the Board finalized risk-based
capital requirements for depository institution holding companies that
are significantly engaged in insurance activities.\48\ This risk-based
capital framework, termed the Building Block Approach, adjusts and
aggregates existing legal entity capital requirements to determine
enterprise-wide capital requirements. The final rule also contains a
risk-based capital requirement excluding insurance activities, in
compliance with section 171 of The Dodd-Frank Act. The Board also
adopted a reporting form FR Q-1 related to the Building Block Approach.
The capital requirements and associated reporting form meet statutory
mandates and help to prevent the economic and consumer impacts
resulting from the failure of organizations engaged in banking and
insurance.
---------------------------------------------------------------------------
\48\ 88 FR 82950 (Nov. 27, 2023).
---------------------------------------------------------------------------
Specific FDIC Regulations Issued Since the Last EGRPRA Review
Small Bank Assessments. In 2016, the FDIC refined the
deposit insurance assessment system for small insured depository
institutions that have been federally insured for at least five years.
The rule revised the financial ratios method so that it would be based
on a statistical model estimating the probability of failure over three
years, updated the financial measures used in the financial ratios
method consistent with the statistical model, and eliminated risk
categories for established small banks and using the financial ratios
method to determine assessment rates for all such banks.\49\ In 2018,
technical amendments were made to the assessment rules to clarify that
small bank assessment credits would be applied when the reserve ratio
of the
[[Page 35248]]
Deposit Insurance Fund (DIF) is at least 1.38 percent, removed a data
item from the Call Report, and re-incorporated the capital definitions
and ratio thresholds used for prompt corrective action that were
inadvertently removed in the 2016 rulemaking.\50\ In 2019, the FDIC
amended the deposit insurance assessment regulations that govern the
use of small bank assessment credits and one-time assessment credits by
certain insured depository institutions to require these credits to
continue as long as the DIF reserve ratio is at least 1.35 percent.\51\
---------------------------------------------------------------------------
\49\ 81 FR 32180 (May 20, 2016), as amended at 85 FR 71227 (Nov.
9, 2020).
\50\ 83 FR 14565 (Apr. 5, 2018).
\51\ 84 FR 65269 (Nov. 27, 2019).
---------------------------------------------------------------------------
Troubled Debt Restructuring Accounting Standards. The FDIC
incorporated updated accounting standards in the risk-based deposit
insurance assessment system applicable to all large IDIs. The rule
modified borrowers experiencing financial difficulty in the
underperforming assets ratio and higher-risk assets ratio for purposes
of deposit insurance assessments.\52\
---------------------------------------------------------------------------
\52\ 87 FR 64348 (Oct. 24, 2022).
---------------------------------------------------------------------------
Initial Base Deposit Insurance Assessment. In 2019 and
2022, the FDIC adopted a final rule to increase initial base deposit
insurance assessment rate schedules by two basis points. The increase
in the assessment rate schedules increased the likelihood that the
reserve ratio will reach the statutory minimum of 1.35 percent by the
statutory deadline of September 30, 2028, consistent with the FDIC's
Amended Restoration Plan, and is intended to support growth in the DIF
in progressing towards the FDIC's long-term goal of a 2 percent
Designated Reserve Ratio (DRR).\53\
---------------------------------------------------------------------------
\53\ 87 FR 64314 (Oct. 24, 2022).
---------------------------------------------------------------------------
Surcharges. Pursuant to the Dodd-Frank Act and the FDIC's
authority under section 7 of the Federal Deposit Insurance Act, the
FDIC imposed a surcharge on the quarterly assessments of insured
depository institutions with total consolidated assets of $10 billion
or more.\54\
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\54\ 81 FR 16059 (Mar. 25, 2016), as amended at 83 FR 14568
(Apr. 5, 2018).
---------------------------------------------------------------------------
Assessments. Shortly after the banking agencies adopted
the final rule that provided for a simple measure of capital adequacy
for certain community banking organizations, the FDIC amended its
deposit insurance assessment to apply the CBLR framework to the deposit
insurance assessment system.\55\
---------------------------------------------------------------------------
\55\ 84 FR 66833 (Dec. 6, 2019).
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Special Assessment Pursuant to Systemic Risk
Determination. In response to the closures of Silicon Valley Bank and
Signature Bank, the FDIC implemented a $16.3 billion special assessment
at a quarterly rate of 3.36 basis points to recover the loss to the
DIF.\56\
---------------------------------------------------------------------------
\56\ 88 FR 83329 (Nov. 29, 2023).
---------------------------------------------------------------------------
Reciprocal Deposits. The FDIC amended its regulations
implementing brokered deposits and interest rate restrictions to
conform with changes to section 29 of the Federal Deposit Insurance Act
made by section 202 of the Economic Growth, Regulatory Relief, and
Consumer Protection Act related to reciprocal deposits.\57\
---------------------------------------------------------------------------
\57\ 84 FR 1346 (Feb. 4, 2019).
---------------------------------------------------------------------------
Current Expected Credit Losses Methodology. The FDIC
addressed the temporary deposit insurance assessment effects resulting
from certain optional regulatory capital transition provisions relating
to the implementation of the current expected credit losses methodology
by adopting amendments to remove the double counting of a specified
portion of the CECL transitional amount or the modified CECL
transitional amount, as applicable, in certain financial measures that
are calculated using the sum of Tier 1 capital and reserves and that
are used to determine assessment rates for large or highly complex
IDIs. The final rule also adjusted the calculation of the loss severity
measure to remove the double counting of a specified portion of the
CECL transitional amounts for a large or highly complex IDI.\58\
---------------------------------------------------------------------------
\58\ 86 FR 11391 (Feb. 25, 2021).
---------------------------------------------------------------------------
Company-Run Stress Testing Requirements for State
Nonmember Banks and State Savings Associations. In 2019, the FDIC
revised the minimum threshold from $10 billion to $250 billion for
company-run stress tests applicable to state nonmember banks and state
savings associations. The FDIC also revised the frequency of required
stress tests from annual to periodically and reduced the number of
required stress testing scenarios from three to two.\59\
---------------------------------------------------------------------------
\59\ 84 FR 56929 (Oct. 24, 2019), as corrected at 84 FR 64984
(Nov. 26, 2019).
---------------------------------------------------------------------------
V. Request for Additional Comments on All Regulations
The agencies also invite comment on the following questions
regarding the agencies' rules in any of the 12 categories of
regulations in this current notice and previous EGRPRA documents.
[cir] Question 20: Are there additional comments you would like to
provide about the compliance costs for any of the EGRPRA categories
included in prior EGRPRA notices? If possible, please provide specific
quantitative information about the costs incurred. If possible, provide
a specific breakdown of costs paid to various services, e.g., labor,
legal and other consulting services, technology.
[cir] Question 21: Are there analyses that quantify the monetary
costs necessary to comply with each of these rules? If possible, please
provide a specific breakdown of costs paid to various services, e.g.,
labor, technology, legal or other consulting services.
[cir] Question 22: Looking at the regulations in a category as a
whole, what changes would effectively minimize monetary compliance
costs while still maintaining the firm's safety and soundness? If
possible, provide specific quantitative information about the current
costs incurred and the associated cost reductions.
[cir] Question 23: Are there additional costs incurred for
maintaining reporting, recordkeeping, and disclosure requirements for
these rules that you wish to highlight in addition to your response to
question 13? If possible, provide a specific breakdown of costs paid to
various services, e.g., labor, legal and other consulting services,
technology, for reporting, recordkeeping, and disclosure.
[cir] Question 24: Are there special considerations that might
increase or decrease compliance costs compared to typical compliance
expenses for other firms for the rules in these categories? Responses
are encouraged to be as specific and quantitative as possible about the
differences in costs incurred and the special characteristics that
drive those differences.
VI. The Agencies' Review of Regulations Under Section 610 of the
Regulatory Flexibility Act (RFA)
Consistent with past practice, the agencies will use the EGRPRA
review to satisfy their respective obligations under section 610 of the
RFA.\60\ To that end,
[[Page 35249]]
for each rule that has a significant impact on a substantial number of
small entities issued in the last 10 years, the agencies invite comment
on (1) the continued need for the rule; (2) the complexity of the rule;
(3) the extent to which the rule overlaps, duplicates or conflicts with
other Federal rules, and, to the extent feasible, with State and local
governmental rules; and (4) the length of time since the rule has been
evaluated or the degree to which technology, economic conditions, or
other factors have changed in the area affected by the rule. The
purpose of the review will be to determine whether such rules should be
continued without change, or should be amended or rescinded, consistent
with the stated objectives of applicable statutes, to minimize any
significant economic impact of the rules upon a substantial number of
such small entities.
---------------------------------------------------------------------------
\60\ Section 610 of the Regulatory Flexibility Act, 5 U.S.C.
610, imposes a continuing obligation on the agencies to review
regulations that may have a significant economic impact upon a
substantial number of small entities within 10 years after a final
rulemaking is published. A subset of the rules the agencies will
review under EGRPRA will also be reviewed under the section 610
review criteria. The agencies will indicate which rules are subject
to section 610 review. The factors the agencies consider in
evaluating a rule under 5 U.S.C. 610 are (1) the continued need for
the rule; (2) the nature of complaints or comments received
concerning the rule from the public; (3) the complexity of the rule;
(4) the extent to which the rule overlaps, duplicates or conflicts
with other Federal rules, and, to the extent feasible, with State
and local governmental rules; and (5) the length of time since the
rule has been evaluated or the degree to which technology, economic
conditions, or other factors have changed in the area affected by
the rule.
---------------------------------------------------------------------------
The FDIC identified one rule pertaining to Capital that requires
review under the RFA. The agencies did not identify any additional
rules in the categories of Banking Operations, Capital, and Community
Reinvestment that require review under the RFA. Accordingly, the
agencies will consider public comments submitted through the EGRPRA
review process and agency experience to identify regulations where the
agencies can reduce burdens that have a significant impact on a
substantial number of small, insured depository institutions.\61\
---------------------------------------------------------------------------
\61\ The review will be consistent with the requirements of a
Regulatory Flexibility Act, section 610 review. The agencies will
determine whether particular rules should be continued without
change, amended, or rescinded, consistent with the objectives of
applicable statutes, to minimize any significant economic impact of
the rules on a substantial number of small, insured depository
institutions.
---------------------------------------------------------------------------
Title: Regulatory Capital Rules: Regulatory Capital, Implementation
of Basel III, Capital Adequacy, Transition Provisions, Prompt
Corrective Action, Standardized Approach for Risk Weighted Assets,
Market Discipline and Disclosure Requirements, Advanced Approaches Risk
Based Capital Rule, and Market Risk Capital Rule.
Citation: 78 FR 55340 and 79 FR 20754.
Authority: 12 U.S.C. 1831o(c) and See 12 U.S.C. 3907.
Description: The FDIC adopted an interim final rule that revised
its risk-based and leverage capital requirements for FDIC-supervised
institutions. The interim final rule is substantially identical to a
joint final rule issued by the OCC and the Board. The interim final
rule implements a revised definition of regulatory capital, a new
common equity tier 1 minimum capital requirement, a higher minimum tier
1 capital requirement, and, for advanced approaches or Category III
FDIC-supervised institutions,\62\ a supplementary leverage ratio that
incorporates a broader set of exposures in the denominator. The interim
final rule incorporates these new requirements into the FDIC's prompt
corrective action framework. In addition, the interim final rule
establishes limits on FDIC-supervised institutions' capital
distributions and certain discretionary bonus payments if the FDIC-
supervised institution does not hold a specified amount of common
equity tier 1 capital in addition to the amount necessary to meet its
minimum risk-based capital requirements. The interim final rule amends
the methodologies for determining risk-weighted assets for all FDIC-
supervised institutions. The interim final rule also adopts changes to
the FDIC's regulatory capital requirements that meet the requirements
of section 171 and section 939A of the Dodd-Frank Wall Street Reform
and Consumer Protection Act. The interim final rule was subsequently
adopted as final.\63\
---------------------------------------------------------------------------
\62\ The applicability of the supplementary leverage ratio was
expanded from advanced approaches banking organizations to include
Category III banking organizations in the agencies' tailoring final
rule issued in 2019. See Changes to Applicability Thresholds for
Regulatory Capital and Liquidity Requirements, 84 FR 59230 (Nov. 1,
2019).
\63\ 79 FR 20754 (Apr. 14, 2014).
---------------------------------------------------------------------------
Prior RFA Analysis: A final regulatory flexibility analysis was
prepared in accordance with 5 U.S.C. 604 in conjunction with an interim
final rule.\64\ In the interim final rule and subsequent final rule,
the FDIC considered comments received on initial regulatory flexibility
analyses included in three proposed rulemakings that preceded the
interim and final rules.\65\
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\64\ 78 FR 55340 (Aug. 10, 2013).
\65\ 77 FR 52792 (Aug. 30, 2012); 77 FR 52888 (Aug. 30, 2012);
77 FR 52978 (Aug. 30, 2012).
--------------------------------------------------------------------------------------------------------------------------------------------------------
State non-member Federal savings State savings BHCs & FHCs -------
Subject National banks State member banks banks associations associations ------ SLHCs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Banking Operations
--------------------------------------------------------------------------------------------------------------------------------------------------------
OCC Regulations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Assessment of Fees.............. 12 CFR part 8..... .................. .................. 12 CFR part 8.....
National Bank and Federal 12 CFR part 7, .................. .................. 12 CFR part 7,
Savings Associations Operations. subpart C. subpart C.
Savings Association Operations.. .................. .................. .................. 12 CFR part 163...
Definitions for Regulations .................. .................. .................. 12 CFR part 141...
Affecting Federal Savings
Associations.
Definitions for Regulations .................. .................. .................. 12 CFR part 161...
Affecting All Savings
Associations.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Board Regulations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Assessment of Fees.............. .................. .................. .................. .................. .................. 12 CFR part 246
[Reg. TT].
-------------
12 CFR part 246>
[Reg. TT].
Availability of Funds and 12 CFR part 229 12 CFR part 229 12 CFR part 229 12 CFR part 229 12 CFR part 229
Collection of Checks. [Reg. CC]. [Reg. CC]. [Reg. CC]. [Reg. CC]. [Reg. CC].
Collection of Checks and Other 12 CFR part 210 12 CFR part 210 12 CFR part 210 12 CFR part 210 12 CFR part 210
Items by Federal Reserve Banks [Reg. J]. [Reg. J]. [Reg. J]. [Reg. J]. [Reg. J].
and Funds Transfers Through
Fedwire.
Debit Card Interchange Fees..... 12 CFR part 235 12 CFR part 235 12 CFR part 235 12 CFR part 235 12 CFR part 235
[Reg. II]. [Reg. II]. [Reg. II]. [Reg. II]. [Reg. II].
[[Page 35250]]
Reimbursement for Providing 12 CFR part 219 12 CFR part 219 12 CFR part 219 12 CFR part 219 12 CFR part 219
Financial Records; [Reg. S]. [Reg. S]. [Reg. S]. [Reg. S]. [Reg. S].
Recordkeeping Requirements for
Certain Financial Records.
Reserve Requirements of 12 CFR part 204 12 CFR part 204 12 CFR part 204 12 CFR part 204 12 CFR part 204
Depository Institutions. [Reg. D]. [Reg. D]. [Reg. D]. [Reg. D]. [Reg. D].
Payment System Risk Reduction Federal Reserve Federal Reserve Federal Reserve Federal Reserve Federal Reserve
Policy. Regulatory Regulatory Regulatory Regulatory Regulatory
Service 9-1000. Service 9-1000. Service 9-1000. Service 9-1000. Service 9-1000.
--------------------------------------------------------------------------------------------------------------------------------------------------------
FDIC Regulations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Assessments..................... 12 CFR part 327... 12 CFR part 327... 12 CFR part 327... 12 CFR part 327... 12 CFR part 327...
--------------------------------------------------------------------------------------------------------------------------------------------------------
Capital
--------------------------------------------------------------------------------------------------------------------------------------------------------
Interagency Regulations
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Capital Adequacy: General 12 CFR part 3, 12 CFR part 217, 12 CFR part 324, 12 CFR part 3, 12 CFR part 324, 12 CFR part 217,
Provisions Ratio Requirements subparts A-C, G. subparts A-C, G subparts A-C, G. subparts A-C, G. subparts A-C, G. subparts A-C, G,
and Buffers Definition of [Reg. Q]. and H [Reg. Q].
Capital Transition Provisions. -------------
12 CFR part 217,
subparts A-C, G
[Reg. Q].
Capital Adequacy: Risk-Weighted 12 CFR part 3, 12 CFR part 217, 12 CFR part 324, 12 CFR part 3, 12 CFR part 324, 12 CFR part 217,
Assets--Standardized Approach. subpart D. subpart D [Reg. subpart D. subpart D. subpart D. subpart D [Reg.
Q]. Q].
-------------
12 CFR part 217,
subpart D [Reg.
Q].
Capital Adequacy: Risk-Weighted 12 CFR part 3, 12 CFR part 217, 12 CFR part 324, 12 CFR part 3, 12 CFR part 324, 12 CFR part 217,
Assets--Internal Ratings-Based subpart E. subpart E [Reg. subpart E. subpart E. subpart E. subpart E [Reg.
and Advanced Measurement Q]. Q].
Approaches. -------------
12 CFR part 217,
subpart E [Reg.
Q].
Capital Adequacy: Risk-Weighted 12 CFR part 3, 12 CFR part 217, 12 CFR part 324, 12 CFR part 3, 12 CFR part 324, 12 CFR part 217,
Assets--Market Risk. subpart F. subpart F [Reg. subpart F. subpart F. subpart F. subpart F [Reg.
Q]. Q].
-------------
12 CFR part 217,
subpart F [Reg.
Q].
Prompt Corrective Action........ 12 CFR part 6..... 12 CFR part 208, 12 CFR part 324, 12 CFR part 6; 12 12 CFR part 324, 12 CFR part 208,
subpart D [Reg. subpart H. CFR 165.8; 12 CFR subpart H. subpart D [Reg.
H]; 12 CFR part 165.9. H]. 12 CFR part
263, subpart H. 263, subpart H.
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OCC Regulations
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Capital Adequacy: Establishment 12 CFR part 3, .................. .................. 12 CFR part 3,
of Minimum Capital Ratios for subparts H-K. subparts H-K.
an Individual Bank or
Individual Federal Savings
Association Enforcement
Issuance of a Directive
Interpretations.
Annual Stress Tests............. 12 CFR part 46.... .................. .................. 12 CFR part 46....
Changes in Permanent Capital of 12 CFR 5.46-.47... .................. .................. 12 CFR 5.45, 5.56.
a National Bank or Federal
Savings Association;
Subordinated Debt Issued by a
National Bank or Federal
Savings Association.
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Board Regulations
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Capital Adequacy: Risk-Based .................. .................. .................. .................. .................. 12 CFR part 217,
Capital Requirements for subpart J [Reg
Depository Institution Holding Q].
Companies Significantly Engaged
in Insurance Activities.
Capital Planning................ .................. .................. .................. .................. .................. 12 CFR part 225.8
[Reg. Y].
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[[Page 35251]]
Stress Tests--U.S. Organizations .................. 12 CFR part 252, .................. .................. .................. 12 CFR part 252,
Company Run and Supervisory. subparts B, E, subparts B, E,
and F [Reg. YY]. and F [Reg. YY].
-------------
12 CFR Part 238,
subparts O and P
[Reg. LL].
Total Loss-Absorbing Capacity, .................. .................. .................. .................. .................. 12 CFR part 252,
Long Term Debt, and Clean subpart G and P
Holding Company Requirements. [Reg. YY].
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FDIC Regulations
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Annual Stress Tests............. .................. .................. 12 CFR part 325... .................. 12 CFR part 325...
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Community Reinvestment Act \1\
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Interagency Regulations
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Community Reinvestment Act...... 12 CFR part 25.... 12 CFR part 228 12 CFR part 345... 12 CFR part 25.... 12 CFR part 25.... 12 CFR part 228
[Reg. BB]. [Reg BB].
-------------
12 CFR part 228
[Reg BB].
Disclosure and Reporting of CRA- 12 CFR part 35.... 12 CFR part 207 12 CFR part 346... 12 CFR part 35.... 12 CFR part 346... 12 CFR part 207
Related Agreements. [Reg. G]. [Reg G].
-------------
12 CFR part 207
[Reg G].
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\1\ Community development regulations are being published for comment as part of the Powers and Activities category.
Rodney E. Hood,
Acting Comptroller of the Currency.
By order of the Board of Governors of the Federal Reserve
System.
Ann E. Misback,
Secretary of the Board.
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on July 15, 2025.
Jennifer M. Jones,
Deputy Executive Secretary.
[FR Doc. 2025-14060 Filed 7-24-25; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P