Rule2021-27439
Community Reinvestment Act Regulations
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 20, 2021
Effective
January 1, 2022
Issuing agencies
Federal Reserve SystemFederal Deposit Insurance Corporation
Abstract
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" and "intermediate small bank." 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).
Full Text
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<title>Federal Register, Volume 86 Issue 241 (Monday, December 20, 2021)</title>
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[Federal Register Volume 86, Number 241 (Monday, December 20, 2021)]
[Rules and Regulations]
[Pages 71813-71815]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-27439]
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FEDERAL RESERVE SYSTEM
12 CFR Part 228
[Regulation BB; Docket No. R-1763]
RIN 7100-AG 25
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 345
RIN 3064-AF79
Community Reinvestment Act Regulations
AGENCY: Board of Governors of the Federal Reserve System (Board);
Federal Deposit Insurance Corporation (FDIC).
ACTION: Joint final rule; technical amendment.
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SUMMARY: 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'' and
``intermediate small bank.'' 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 January 1, 2022.
FOR FURTHER INFORMATION CONTACT:
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,
or Cody M. Gaffney, Attorney, (202) 452-2674, 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
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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. The CRA regulations define
small and intermediate small banks 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 228.12(u)(2) and 345.12(u)(2). This adjustment
formula was first adopted for CRA purposes by the Board, the Office of
the Comptroller of the Currency (OCC), 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\
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\1\ Public Law 111-203, 124 Stat. 1376 (2010).
\2\ See OCC interim final rule, 76 FR 48950 (Aug. 9, 2011).
\3\ See Board interim final rule, 76 FR 56508 (Sept. 13, 2011).
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The OCC has determined that it will adjust the asset-size criteria
for institutions that are subject to OCC-issued CRA regulations,
including national banks and federal and state savings associations, by
a means separate from this rulemaking process.
The threshold for small banks was revised most recently in December
2020 and became effective January 1, 2021. 85 FR 83747 (Dec. 23, 2020).
The current CRA regulations provide that banks that, as of December 31
of either of the prior two calendar years, had assets of less than
$1.322 billion are small banks. Small banks with assets of at least
$330 million as of December 31 of both of the prior two calendar years
and less than $1.322 billion as of December 31 of either of the prior
two calendar years are intermediate small banks. 12 CFR 228.12(u)(1)
and 345.12(u)(1). This joint final rule revises these thresholds.
During the 12-month period ending November 2021, the CPI-W
increased by 4.73 percent. As a result, the Agencies are revising 12
CFR 228.12(u)(1) and 345.12(u)(1) to make this annual adjustment.
Beginning January 1, 2022, banks that, as of December 31 of either of
the prior two calendar years, had assets of less than $1.384 billion
are small banks. Small banks with assets of at least $346 million as of
December 31 of both of the prior two calendar years and less than
$1.384 billion as of December 31 of either of the prior two calendar
years are intermediate small banks. The Agencies also publish current
and historical asset-size thresholds on the website of the Federal
Financial Institutions Examination Council at <a href="http://www.ffiec.gov/cra/">http://www.ffiec.gov/cra/</a>.
Administrative Procedure Act and Effective Date
Under 5 U.S.C. 553(b)(B) of the Administrative Procedure Act (APA),
an agency may, for good cause, find (and incorporate the finding and a
brief statement of reasons therefore in the rules issued) that notice
and public procedure thereon are impracticable, unnecessary, or
contrary to the public interest.
The amendments to the regulations to adjust the asset-size
thresholds for small and intermediate small banks 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. 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. 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,
2022. 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.
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
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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\
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\4\ 12 U.S.C 4802(a).
\5\ 12 U.S.C 4802(b).
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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\
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\6\ 5 U.S.C. 801 et seq.
\7\ 5 U.S.C. 801(a)(3).
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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.
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\8\ 5 U.S.C. 804(2).
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List of Subjects
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.
Federal Reserve System
12 CFR Chapter II
For the reasons set forth in the common preamble, 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
1. 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
2. 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 $1.384
billion. Intermediate small bank means a small bank with assets of at
least $346 million as of December 31 of both of the prior two calendar
years and less than $1.384 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 common preamble, 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
3. 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
4. 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 $1.384
billion. Intermediate small bank means a small bank with assets of at
least $346 million as of December 31 of both of the prior two calendar
years and less than $1.384 billion as of December 31 of either of the
prior two calendar years.
* * * * *
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated
authority.
Ann E. Misback,
Secretary of the Board.
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on December 14, 2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021-27439 Filed 12-17-21; 8:45 am]
BILLING CODE 6210-01- 6714-01- P
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