Proposed Rule2024-02016
Regulatory Publication and Review Under the Economic Growth and Regulatory Paperwork Reduction Act of 1996
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
February 6, 2024
Issuing agencies
Treasury DepartmentComptroller of the CurrencyFederal Reserve SystemFederal Deposit Insurance Corporation
Abstract
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of 1996 (EGRPRA), the OCC, Board, and FDIC (collectively, the agencies) are reviewing agency regulations to identify outdated or otherwise unnecessary regulatory requirements on insured depository institutions and their holding companies. The agencies divided their regulations into 12 categories outlined in the included chart. Over the next two years, the agencies will publish four Federal Register documents requesting comment on multiple categories. This first Federal Register document requests comment on regulations concerning the following three categories: Applications and Reporting, Powers and Activities, and International Operations.
Full Text
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<title>Federal Register, Volume 89 Issue 25 (Tuesday, February 6, 2024)</title>
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[Federal Register Volume 89, Number 25 (Tuesday, February 6, 2024)]
[Proposed Rules]
[Pages 8084-8109]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-02016]
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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: Notice of 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. The agencies divided their
regulations into 12 categories outlined in the included chart. Over the
next two years, the agencies will publish four Federal Register
documents requesting comment on multiple categories. This first Federal
Register document requests comment on regulations concerning the
following three categories: Applications and Reporting, Powers and
Activities, and International Operations.
DATES: Written comments must be received no later than May 6, 2024.
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:
<bullet> Federal eRulemaking Portal--<a href="http://Regulations.gov">Regulations.gov</a>: Go to <a href="https://regulations.gov/">https://regulations.gov/</a>. 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
<a href="http://Regulations.gov">Regulations.gov</a> site, please call 1-866-498-2945 (toll free) Monday-
Friday, 9 a.m.-5 p.m. ET, or email <a href="/cdn-cgi/l/email-protection#93e1f6f4e6fff2e7fafcfde0fbf6ffe3f7f6e0f8d3f4e0f2bdf4fce5"><span class="__cf_email__" data-cfemail="8bf9eeecfee7eaffe2e4e5f8e3eee7fbefeef8e0cbecf8eaa5ece4fd">[email protected]</span></a>.
<bullet> 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.
<bullet> 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 <a href="http://Regulations.gov">Regulations.gov</a> 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:
<bullet> Viewing Comments Electronically--<a href="http://Regulations.gov">Regulations.gov</a>: Go to
<a href="https://regulations.gov/">https://regulations.gov/</a>. 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 <a href="http://Regulations.gov">Regulations.gov</a> site, please call 1-866-498-2945
(toll free) Monday-Friday, 9am-5pm ET, or email
<a href="/cdn-cgi/l/email-protection#196b7c7e6c75786d7076776a717c75697d7c6a72597e6a78377e766f"><span class="__cf_email__" data-cfemail="23514644564f42574a4c4d504b464f5347465048634450420d444c55">[email protected]</span></a>.
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:
<bullet> Agency Website: <a href="https://www.federalreserve.gov">https://www.federalreserve.gov</a>. Follow the
instructions for submitting comments at <a href="https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm">https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm</a>.
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Follow the instructions for submitting comments.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#2e5c4b495d004d4143434b405a5d6e484b4a4b5c4f425c4b5d4b5c584b00494158"><span class="__cf_email__" data-cfemail="a6d4c3c1d588c5c9cbcbc3c8d2d5e6c0c3c2c3d4c7cad4c3d5c3d4d0c388c1c9d0">[email protected]</span></a>. Include the
docket number in the subject line of the message.
<bullet> Fax: 202-452-3819 or 202-452-3102.
<bullet> 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 <a href="http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm">www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm</a> 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
[[Page 8085]]
Room M-4365A, 2001 C Street NW, Washington, DC 20551, between 9:00 a.m.
and 5:00 p.m. during Federal business weekdays. For security reasons,
the Board requires that visitors make an 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: The FDIC encourages interested parties to submit written
comments. Please include your name, affiliation, address, email
address, and telephone number(s) in your comment. You may submit
comments to the FDIC, identified by ``EGRPRA'' in the subject line of
your message by any of the following methods:
<bullet> Agency Website: <a href="https://www.fdic.gov/resources/regulations/federal-register-publications/">https://www.fdic.gov/resources/regulations/federal-register-publications/</a>. Follow instructions for
submitting comments on the FDIC's website.
<bullet> Mail: James P. Sheesley, Assistant Executive Secretary,
Attention: Comments/Legal OES (EGRPRA), Federal Deposit Insurance
Corporation, 550 17th Street NW, Washington, DC 20429.
<bullet> Hand Delivery/Courier: Comments may be hand-delivered to
the guard station at the rear of the 550 17th Street NW, building
(located on F Street NW) on business days between 7:00 a.m. and 5:00
p.m. ET.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#54373b3939313a20271412101d177a333b22"><span class="__cf_email__" data-cfemail="01626e6c6c646f757241474548422f666e77">[email protected]</span></a>. Include ``EGRPRA'' in the
subject line of the message.
Public Inspection: Comments received, including any personal
information provided, may be posted without change to <a href="https://www.fdic.gov/resources/regulations/federal-register-publications/">https://www.fdic.gov/resources/regulations/federal-register-publications/</a>.
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 this notice 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, Maria
Jovanovic, Senior Financial Institution Policy Analyst II, (202) 475-
6327, and Colton Hamming, Financial Institution Policy Analyst II,
(202) 452-3932, Division of Supervision and Regulation; Mandie Aubrey,
Senior Counsel, (202) 452-2595, Division of Consumer and Community
Affairs; Dafina Stewart, Assistant General Counsel, (202) 452-2677 and
David Cohen, Senior Attorney, (202) 452-5259, 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: Karen J. Currie, Chief, Policy & Program Development Section,
(202) 898-3981, Division of Risk Management Supervision; or William
Piervincenzi, Supervisory Counsel, (202) 898-6957, Legal Division.
SUPPLEMENTARY INFORMATION:
I. Introduction
Congress enacted Section 2222 of EGRPRA \1\ to reduce regulatory
burden imposed upon insured depository institutions consistent with
safety and soundness, to promote consistency between the agencies'
regulations, and to support consumer protection. The statute requires
that not less frequently than once every 10 years, the Federal
Financial Institutions Examination Council (FFIEC),\2\ along with 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 shall (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 notice.
\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 notices 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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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 these issues. It also
directs the agencies to eliminate unnecessary regulations to the extent
that such action is appropriate. Finally, the statute requires the
FFIEC to submit to Congress a report that summarizes any significant
issues raised in the public comments and the relative merits of those
issues. The report also must include an analysis of whether the
agencies are able to address the regulatory burdens associated with
such issues or whether these 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 look at 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 the way business
is
[[Page 8086]]
conducted 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 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 on
these smaller institutions. The agencies understand that when a new
regulation is issued or a current regulation amended, smaller
institutions may have to devote a significant amount of their resources
to determine if and how the regulation will affect them. Through the
public comment process, the EGRPRA review can help the agencies
identify and target regulatory changes to reduce impacts on these
smaller institutions.
Burden reduction must be compatible with consumer protection, 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, we specifically ask the public to comment on the
relationship among burden reduction, regulatory requirements, policy
objectives, and statutory mandates. We also seek quantitative data
about the impact of rules, where available.
We note that the agencies 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 EGRPRA, 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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Over the next two years, the agencies plan to publish four Federal
Register notices, each addressing one or more categories of rules. Each
Federal Register notice will have a 90-day comment period. Today, the
agencies are publishing the first of the four notices, addressing the
following categories of regulations: Applications and Reporting; Powers
and Activities; and International Operations. The agencies invite the
public to identify outdated, unnecessary, or unduly burdensome
regulatory requirements imposed on insured depository institutions and
their holding companies in these three categories.
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 with the three categories of
regulations addressed in this Federal Register notice appearing as the
first three categories in the chart. 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 to
generally 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 undertake any rulemaking 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.
IV. Request for Comments on the First Three Categories of Regulations:
Applications and Reporting, Powers and Activities, and International
Operations
The agencies are requesting comment on regulations in three
specific categories to identify outdated, unnecessary, or unduly
burdensome requirements imposed on insured depository institutions and
their holding companies. The agencies will solicit comment on all rules
finalized by the agencies before the publication of the last EGRPRA
notice in the series. In addition to comments on regulations in the
first three categories generally, the agencies are requesting comments
on certain specific regulations described below within the first three
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' Applications and Reporting, Powers and
Activities, and International Operations rules addressed in this
notice. We will ask these same questions for each notice we issue in
connection with the EGRPRA process.
<bullet> 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 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.
<bullet> Overarching approaches/flexibilities.
[[Page 8087]]
[cir] Question 3: With respect to the regulations in these
categories, could an agency use a different regulatory approach to
lessen the burden imposed by the regulations and achieve statutory
intent?
[cir] Question 3: Do any of these rules impose unnecessarily
inflexible requirements? If so, please identify the regulations and
indicate how they should be amended.
<bullet> Cumulative effects.
[cir] Question 4: 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.
<bullet> Effect on competition.
[cir] Question 5: 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.
<bullet> Reporting, recordkeeping, and disclosure requirements.
[cir] Question 6: 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 7: 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.
<bullet> Unique characteristics of a type of institution.
[cir] Question 8: 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.
<bullet> Clarity.
[cir] Question 9: Are the regulations in these categories clear and
easy to understand?
[cir] Question 10: Are there specific regulations for which
clarification is needed? If so, please identify the regulations and
indicate how they should be amended.
<bullet> Impact to community banks and other small, insured
depository institutions.
[cir] Question 11: 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 12: Have the agencies issued regulations pursuant to
a common statute that, as applied by the agencies, create redundancies
or impose inconsistent requirements?
[cir] Question 13: 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 14: 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.
<bullet> Scope of rules.
[cir] Question 15: Is the scope of each rule in these categories
consistent with the intent of the underlying statute(s)?
[cir] Questions 16: 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
<bullet> Expanded Examination Cycle for U.S. Branches and Agencies
of Foreign Banks. In December 2018, the agencies expanded the number of
insured depository institutions and U.S. branches and agencies of
foreign banks eligible for an 18-month on-site examination cycle. As
authorized by the Economic Growth, Regulatory Relief, and Consumer
Protection Act (EGRRCPA),\11\ the agencies' final rules generally allow
qualifying insured depository institutions with less than $3 billion in
total assets to benefit from an extended 18-month on-site examination
cycle. The rules also make parallel changes to the agencies'
regulations governing the on-site examination cycle for U.S. branches
and agencies of foreign banks.
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\11\ See Economic Growth, Regulatory Relief, and Consumer
Protection Act, Public Law 115-174, 132 Stat. 1296 (2018).
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<bullet> Reduced Reporting for Covered Depository Institutions. In
June 2019, the agencies established a reduced reporting requirement for
certain covered depository institutions.\12\
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\12\ 84 FR 29050 (Jun. 21, 2019).
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<bullet> Margin and Capital Requirements for Covered Swap Entities.
The agencies have issued and modified provisions related to margin and
capital requirements for covered swap entities since the last EGRPRA
review.\13\
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\13\ 80 FR 74839 (Nov. 30, 2015); 83 FR 50805 (Oct. 10, 2018);
84 FR 9940 (Mar. 19, 2019); 85 FR 39464 (Jul. 1, 2020); 85 FR 39754
(Aug. 31, 2020).
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<bullet> Amendments to the Regulations Implementing Section 13 of
the Bank Holding Company Act Regarding Proprietary Trading and
Relationships with Covered Funds. In July 2020, the agencies adopted
amendments to the regulations implementing Section 13 of the Bank
Holding Company Act (BHC Act),\14\ also known as the Volcker Rule. The
amendments continued efforts in 2014, when the agencies amended the
regulations in a manner consistent with certain sections of the
EGRRCPA.\15\ Section 13 of the BHC Act contains certain restrictions on
the ability of a banking entity or nonbank financial company supervised
by the Board to engage in proprietary trading and have certain
interests in, or relationships with, a hedge fund or private equity
fund (covered funds). The amendments were intended to improve and
streamline the regulations implementing Section 13 of the BHC Act by
modifying and clarifying requirements related to the covered fund
provisions of the rules and to be consistent with EGRRCPA.
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\14\ 12 U.S.C. 1851.
\15\ See EGRRCPA sections 203, 204. These provisions were
effective upon EGRRCPA's enactment.
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<bullet> Computer-Security Incident Notification Requirements. In
November 2021, the agencies established notification requirements
related to computer-security incidents that may adversely affect
insured depository institutions.\16\
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\16\ 86 FR 66424 (Nov. 23, 2021).
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Specific OCC Regulations Issued Since the Last EGRPRA Review
<bullet> Integration of Applications and Reporting rules and Powers
and Activities rules for Federal Savings
[[Page 8088]]
Associations and National Banks. In December 2020, to the extent
appropriate and consistent with statutory charter differences, the OCC
integrated its Applications and Reporting rules (the majority of which
are included in the OCC's licensing rules contained in 12 CFR part 5)
for national banks and Federal savings associations.\17\ Similarly, in
December 2020, to the extent appropriate and consistent with statutory
charter differences, the OCC integrated its Powers and Activities rules
(which are contained in 12 CFR part 7) for national banks and Federal
savings association.\18\
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\17\ 85 FR 80404 (Dec. 11, 2020). The OCC initially integrated
its licensing rules for national banks and Federal savings
associations in 2015. 80 FR 28345 (May 18, 2015).
\18\ 85 FR 83686 (Dec. 22, 2020).
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<bullet> Question 17: Are there additional rules that could be
integrated, amended, or removed?
<bullet> Covered Savings Associations Provisions. In 2019, as
required by the EGRRCPA,\19\ the OCC established standards and
procedures for Federal savings associations that elected to operate as
a covered savings association under Section 5a of the Home Owners' Loan
Act.\20\
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\19\ 12 U.S.C. 1464a.
\20\ 84 FR 23991 (May 24, 2019).
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Specific Board Regulations Issued Since the Last EGRPRA Review
<bullet> Modified Capital Planning Requirements for Certain Holding
Companies. In 2021, the Board adopted a final rule to modify the
requirements in the Board's capital plan rule for firms with assets of
$100 billion or more.\21\ Among other changes, this rule modified
regulatory reporting requirements for Large Bank Holding Companies,
Intermediate Holding Companies, and Savings and Loan Holding Companies.
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\21\ 86 FR 7927 (Feb. 3, 2021).
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Specific FDIC Regulations Issued Since the Last EGRPRA Review
<bullet> Transferred Regulations from the Office of Thrift
Supervision (OTS). Pursuant to Section 316(b) of the Dodd-Frank Act,
rules transferred from the OTS to the FDIC and other successor agencies
remain in effect ``until modified, terminated, set aside, or superseded
in accordance with applicable law'' by the relevant successor agency,
by a court of competent jurisdiction, or by operation of law. When the
FDIC republished the transferred OTS regulations as new FDIC
regulations applicable to state savings associations, the FDIC stated
in its Federal Register notice that its staff would evaluate the
transferred OTS rules and might later recommend incorporating the
transferred OTS regulations into other FDIC rules, amending them, or
rescinding them. This process began in 2013 and continues, involving
publication in the Federal Register of a series of notices of proposed
rulemakings and final rulemakings.\22\ As of the date of this notice,
only two of the transferred OTS regulations remain. The FDIC will
consider public comments submitted either through the EGRPRA review
process or through any notice and comment rulemaking related to the
FDIC's determinations regarding the transferred OTS regulations.
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\22\ Final rulemakings include: 78 FR 76721 (Dec. 19, 2013); 79
FR 42182 (Jul. 21, 2014); 79 FR 42183 (Jul. 21, 2014); 79 FR 63498
(Oct. 24, 2014); 80 FR 5009 (Jan. 30, 2015); 80 FR 5015 (Jan. 30,
2015); 80 FR 65612 (Oct. 27, 2015); 80 FR 65903 (Oct. 28, 2015); 80
FR 65913 (Oct. 28, 2015); 80 FR 79250 (Dec. 21, 2015); 83 FR 13839
(Apr. 2, 2018); 83 FR 13843 (Apr. 2, 2018); 83 FR 60333 (Nov. 26,
2018); 84 FR 31171 (Jul. 1, 2019); 84 FR 65276 (Nov. 27, 2019); 85
FR 3232 (Jan. 21, 2020); 85 FR 3247 (Jan. 21, 2020); 85 FR 3250
(Jan. 21, 2020); 86 FR 8082 (Feb. 3, 2021); 86 FR 8089 (Feb. 3,
2021); 86 FR 8098 (Feb. 3, 2021).
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<bullet> Amendments to International Banking Regulations (Part
347). In March 2020, the FDIC revised its existing international
banking regulations (contained in 12 CFR part 347) to replace
references to credit ratings in the definition of investment grade with
an alternative standard of creditworthiness and to make changes to the
eligibility criteria for the types of assets that insured branches of
foreign banks may pledge for the benefit of the FDIC.
<bullet> Incorporation of Existing Statement of Policy Regarding
Requests for Participation in the Affairs of an Insured Depository
Institution by Convicted Individuals. In August 2020, the FDIC revised
its existing regulations pertaining to Section 19 of the FDI Act \23\
(contained in 12 CFR parts 303 and 308) regarding the FDIC's procedures
and standards relating to applications for the FDIC's written consent
and to incorporate and revise the FDIC's existing Statement of Policy
for Section 19 of the FDI Act (SOP). The incorporation of the SOP into
the FDIC's regulations was intended to make the application of the SOP
more transparent, increase certainty concerning the FDIC's application
process, afford regulatory relief, and help both insured depository
institutions and affected individuals to understand the impact of
Section 19 and to potentially seek relief from it.\24\
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\23\ 12 U.S.C. 1829.
\24\ On December 23, 2022, the President signed into law the
Fair Hiring in Banking Act (FHBA), which significantly revised
Section 19 and was effective immediately. The FHBA appears at
Section 5705 of the James M. Inhofe National Defense Authorization
Act for Fiscal Year 2023, Pub. L. 117-263, 136 Stat. 2395, 3411
(2022). The FDIC is working on a proposal to amend its Section 19
regulations under 12 CFR parts 303 and 308 to conform with the FHBA.
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<bullet> Rule Regarding Parent Companies of Industrial Banks and
Industrial Loan Companies (Part 354). In February 2021, the FDIC
adopted a final rule (contained in 12 CFR part 354) that requires
certain conditions and commitments for each deposit insurance
application approval, non-objection to a change in control notice, and
merger application approval that would result in an insured industrial
bank or industrial loan company becoming, on or after the effective
date of the final rule, a subsidiary of a company that is not subject
to consolidated supervision by the Board. The final rule also requires
that before any industrial bank or industrial loan company may become a
subsidiary of a company that is not subject to consolidated supervision
by the Board, such company and the industrial bank or industrial loan
company must enter into one or more written agreements with the FDIC.
V. 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.\25\ To that end, 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
[[Page 8089]]
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.
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\25\ 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.
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The agencies have not identified any rules pertaining to
Applications and Reporting, Powers and Activities, and International
Operations that would have a significant impact on a substantial number
of small entities. 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.\26\
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\26\ 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.
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BILLING CODE 4810-33-; 6210-01-; 6714-01-P
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Michael J. Hsu,
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 January 16, 2024.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2024-02016 Filed 2-5-24; 8:45 am]
BILLING CODE 4810-33-; 6210-01; 6714-01-C
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</html>Indexed from Federal Register on February 6, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.