Rule2024-06497
Community Reinvestment Act; Supplemental Rule
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
March 29, 2024
Effective
April 1, 2024
Issuing agencies
Treasury DepartmentComptroller of the CurrencyFederal Reserve SystemFederal Deposit Insurance Corporation
Abstract
The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) (together referred to as the agencies, and each, individually, the agency) are issuing this supplemental rulemaking related to the agencies' Community Reinvestment Act (CRA) final rule issued on October 24, 2023, and published in the Federal Register on February 1, 2024 (2023 CRA Final Rule). The rulemaking has two components. First, the agencies are adopting an interim final rule that amends, and requests comment on, the applicability date of the facility-based assessment areas provision and public file provision included in the 2023 CRA Final Rule. Second, the agencies are adopting a final rule that makes technical amendments to the 2023 CRA Final Rule and related regulations. In addition to the rulemaking, this document makes a correction to the preamble to the 2023 CRA Final Rule regarding the OCC's Unfunded Mandates Reform Act (UMRA) regulatory analysis.
Full Text
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<title>Federal Register, Volume 89 Issue 62 (Friday, March 29, 2024)</title>
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[Federal Register Volume 89, Number 62 (Friday, March 29, 2024)]
[Rules and Regulations]
[Pages 22060-22069]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-06497]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Parts 24, 25, 35, and 192
[Docket ID OCC-2022-0002]
RIN 1557-AF26
FEDERAL RESERVE SYSTEM
12 CFR Parts 207 and 228
[Regulation BB; Docket No. R-1830]
RIN 7100-AG75
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Parts 345 and 346
RIN 3064-AG03
Community Reinvestment Act; Supplemental Rule
AGENCY: Office of the Comptroller of the Currency, Treasury; Board of
Governors of the Federal Reserve System; and Federal Deposit Insurance
Corporation.
ACTION: Interim final rule; technical amendments; correction.
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SUMMARY: The Office of the Comptroller of the Currency (OCC), the Board
of Governors of the Federal Reserve System (Board), and the Federal
Deposit Insurance Corporation (FDIC) (together referred to as the
agencies, and each, individually, the agency) are issuing this
supplemental rulemaking related to the agencies' Community Reinvestment
Act (CRA) final rule issued on October 24, 2023, and published in the
Federal Register on February 1, 2024 (2023 CRA Final Rule). The
rulemaking has two components. First, the agencies are adopting an
interim final rule that amends, and requests comment on, the
applicability date of the facility-based assessment areas provision and
public file provision included in the 2023 CRA Final Rule. Second, the
agencies are adopting a final rule that makes technical amendments to
the 2023 CRA Final Rule and related regulations. In addition to the
rulemaking, this document makes a correction to the preamble to the
2023 CRA Final Rule regarding the OCC's Unfunded Mandates Reform Act
(UMRA) regulatory analysis.
DATES:
Effective date: This rule (including interim final rule and
technical amendments) is effective on April 1, 2024.
Comment due date: Comments on the interim final rule (regarding the
applicability date for Sec. Sec. 25.16, 25.43, 228.16, 228.43, 345.16,
and 345.43) must be received by May 13, 2024.
ADDRESSES: Comments should be directed to:
OCC: Commenters are encouraged to submit comments through the
Federal eRulemaking Portal. Please use the title ``Community
Reinvestment Act; Supplemental Rule'' 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-2022-0002'' 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 (866) 498-2945 (toll free) Monday-
Friday, between 8 a.m. and 7 p.m. ET during Federal business weekdays,
or email <a href="/cdn-cgi/l/email-protection#a1d3c4c6d4cdc0d5c8cecfd2c9c4cdd1c5c4d2cae1c6d2c08fc6ced7"><span class="__cf_email__" data-cfemail="6c1e090b19000d180503021f0409001c08091f072c0b1f0d420b031a">[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-2022-0002'' 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-2022-0002'' in the
search box and click ``Search.'' Click on the ``Documents'' tab and
then the document's title. After clicking the document's title, click
the ``Browse 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 Results'' option on the left side of the screen.
Supporting materials can be viewed by clicking on the ``Documents'' tab
and filtered by clicking on the ``Sort By'' drop-down on the right side
of the screen or the ``Refine Documents Results'' option on the left
side of the
[[Page 22061]]
screen. For assistance with the <a href="http://Regulations.gov">Regulations.gov</a> site, please call (866)
498-2945 (toll free) Monday-Friday, during Federal business weekdays,
between 8 a.m. and 7 p.m. ET, or email <a href="/cdn-cgi/l/email-protection#d0a2b5b7a5bcb1a4b9bfbea3b8b5bca0b4b5a3bb90b7a3b1feb7bfa6"><span class="__cf_email__" data-cfemail="10627577657c7164797f7e6378757c607475637b507763713e777f66">[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. R-1830 and
RIN 7100-AG75, 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> Email: <a href="/cdn-cgi/l/email-protection#24564143570a474b4949414a50576442414041564548564157415652410a434b52"><span class="__cf_email__" data-cfemail="4b392e2c3865282426262e253f380b2d2e2f2e392a27392e382e393d2e652c243d">[email protected]</span></a>. Include docket
and RIN numbers 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.
Instructions: All public comments are available from the Board's
website at <a href="https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm">https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm</a> as submitted. Accordingly, comments will not be edited
to remove any identifying or contact 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 appointment to inspect comments. You may do so 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 RIN 3064-AG03, 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 agency website.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#d8bbb7b5b5bdb6acab98bebcb1bbf6bfb7ae"><span class="__cf_email__" data-cfemail="82e1edefefe7ecf6f1c2e4e6ebe1ace5edf4">[email protected]</span></a>. Include RIN 3064-AG03 on the
subject line of the message.
<bullet> Mail: James P. Sheesley, Assistant Executive Secretary,
Attention: Comments RIN 3064-AG03, 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 Federal business weekdays between 7 a.m.
and 5 p.m.
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 document 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: Heidi M. Thomas, Senior Counsel, or Emily Boyes, Counsel,
Chief Counsel's Office, (202) 649-5490; or Vonda Eanes, Director for
CRA and Fair Lending Policy, or Cassandra Remmenga, CRA Modernization
Program Manager, Bank Supervision Policy, (202) 649-5470, 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 711 to access telecommunications relay services.
Board: Dorian Hawkins, Counsel; S. Caroline (Carrie) Johnson,
Manager; Lorna Neill, Senior Counsel; Amal Patel, Senior Counsel; or
Jaydee DiGiovanni, Counsel; Division of Consumer and Community Affairs
or Cody Gaffney, Senior Attorney; Legal Division, Board of Governors of
the Federal Reserve System at (202) 452-2412. For users of TDD-TYY,
(202) 263-4869 or dial 711 from any telephone anywhere in the United
States.
FDIC: Pamela A. Freeman, CRA Program Manager, Supervisory Policy
Branch, Division of Depositor and Consumer Protection, (202) 898-3656;
Patience R. Singleton, Senior Policy Analyst, Supervisory Policy
Branch, Division of Depositor and Consumer Protection, (202) 898-6859;
Sherry Ann Betancourt, Counsel, Legal Division, (202) 898-6560; Alys V.
Brown, Senior Attorney, Legal Division, (202) 898-3565, Federal Deposit
Insurance Corporation, 550 17th Street NW, Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
I. Introduction
The CRA \1\ requires the agencies to assess a bank's \2\ record of
meeting the credit needs of its entire community, including low- and
moderate-income neighborhoods, consistent with the bank's safe and
sound operation. Upon completing this assessment, the statute requires
the agencies to ``prepare a written evaluation of the institution's
record of meeting the credit needs of its entire community, including
low- and moderate-income neighborhoods.'' \3\ The statute further
provides that each agency must consider a bank's CRA performance ``in
its evaluation of an application for a deposit facility by such
institution.'' \4\ The agencies implement the CRA and establish the
framework and criteria by which the agencies assess a bank's
performance through their individual CRA regulations.\5\
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\1\ 12 U.S.C. 2901 et seq.
\2\ For purposes of this SUPPLEMENTARY INFORMATION, the term
``bank'' includes insured national and State banks, Federal and
State savings associations, Federal branches as defined in 12 CFR
part 28, insured State branches as defined in 12 CFR 345.11(c), and
State member banks as defined in 12 CFR part 208, except as provided
in 12 CFR __.11(c). See also note 5.
\3\ 12 U.S.C. 2906(a).
\4\ 12 U.S.C. 2903(a)(2).
\5\ See 12 CFR parts 25 (OCC), 228 (Regulation BB) (Board), and
345 (FDIC). For clarity and to streamline references, citations to
the agencies' common CRA regulations are provided in the following
format: 12 CFR __.xx. For example, references to 12 CFR 25.16 (OCC),
228.16 (Board), and 345.16 (FDIC) are streamlined as follows: ``12
CFR __.16.''
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On October 24, 2023, the agencies issued the 2023 CRA Final Rule
amending their CRA regulations to update how CRA activities qualify for
consideration, where CRA activities are considered, and how CRA
activities are evaluated. The 2023 CRA Final Rule was published in the
Federal Register on February 1, 2024,\6\ and it takes effect on April
1, 2024, with staggered applicability dates of April 1, 2024, January
1, 2026, and January 1, 2027.
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\6\ 89 FR 6574 (Feb. 1, 2024).
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As described in more detail below, this supplemental rulemaking
includes two parts. First, the agencies are issuing an interim final
rule to extend the applicability date of the facility-based assessment
areas provision and the public file provision in the 2023 CRA Final
Rule (Sec. Sec. __.16 and __.43,
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respectively) from April 1, 2024, to January 1, 2026. The agencies are
requesting comment on these changes.
Second, the agencies are issuing a final rule that makes technical
amendments to those amendments adopted in the 2023 CRA Final Rule and
related regulations. These technical amendments do not change the
substance or meaning of the 2023 CRA Final Rule. As discussed in more
detail in this SUPPLEMENTARY INFORMATION, the technical amendments to
the 2023 CRA Final Rule are as follows:
<bullet> The agencies are jointly (1) amending the transition
provision (Sec. __.51) to clarify the applicability date of the public
notice provision (Sec. __.44); and (2) amending the strategic plan
provision (Sec. __.27) to correct an omission from the agency-specific
amendments.
<bullet> The Board and the FDIC are (1) correcting a cross-
reference in an otherwise incomplete amendatory instruction for
appendix B (Calculations for the Community Development Tests); and (2)
amending their agency-specific versions of appendix G, which reproduces
the CRA regulations in effect on March 31, 2024 (legacy CRA
regulations), to reflect separate amendments made to the bank asset-
size thresholds since the issuance of the 2023 CRA Final Rule.
<bullet> The Board is making a technical amendment to its authority
section in Sec. 228.11.
Further, the agencies are making technical amendments to their
regulations implementing the CRA sunshine requirements of the Federal
Deposit Insurance Act \7\ (CRA Sunshine regulations) (12 CFR parts 35
(OCC), 207 (Regulation G) (Board), and 346 (FDIC)) and the OCC is
making technical amendments to its community and economic development
entities, community development projects, and other public welfare
investments regulation (Public Welfare Investment regulation) (12 CFR
part 24) to update cross-references to their CRA regulations to conform
with changes made by the 2023 CRA Final Rule. The OCC also is updating
a cross-reference to the agency's CRA regulation in its conversions
from mutual to stock form regulation (12 CFR part 192).
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\7\ Codified at 12 U.S.C. 1831y.
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Finally, this document corrects language in the preamble of the
Federal Register document issuing the 2023 CRA Final Rule with respect
to the OCC's UMRA \8\ discussion.
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\8\ 2 U.S.C. 1531 et seq.
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II. Interim Final Rule
As described below, the agencies are issuing an interim final rule
to extend the applicability date of the facility-based assessment areas
provision and the public file provision in the 2023 CRA Final Rule
(Sec. Sec. __.16 and __.43, respectively) from April 1, 2024, to
January 1, 2026. The agencies are requesting comment on these changes.
Facility-based assessment areas (Section __.16). Section __.16 of
the 2023 CRA Final Rule provides that a bank must delineate one or more
facility-based assessment areas within which the agencies evaluate the
bank's record of helping to meet the credit needs of its entire
community. This section prescribes the types of deposit-taking
facilities that trigger the requirement to delineate a facility-based
assessment area, the geographic requirements of a facility-based
assessment area, and other limitations on the delineation of facility-
based assessment areas. For example, Sec. __.16(b)(2) provides that,
except as provided in Sec. __.16(b)(3), each of a bank's facility-
based assessment areas must consist of a single metropolitan
statistical area (MSA), one or more contiguous counties within an MSA,
or one or more contiguous counties within the nonmetropolitan area of a
State. Section __.16(b)(3) provides that an intermediate bank or a
small bank may adjust the boundaries of its facility-based assessment
areas to include only the portion of a county that it reasonably can be
expected to serve, further stipulating that such a facility-based
assessment area must consist of contiguous whole-census tracts and
comply with the limitations in Sec. __.16(c).\9\
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\9\ Section __.16(c) provides that facility-based assessment
areas may not reflect illegal discrimination and may not arbitrarily
exclude low- or moderate-income census tracts. See Sec. __.16(c)(1)
and (2).
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As published in the Federal Register on February 1, 2024, Sec.
__.51(a) of the 2023 CRA Final Rule provides that the facility-based
assessment areas requirements in Sec. __.16 apply as of April 1, 2024.
In the course of implementation work, the agencies have identified and
considered issues arising due to this applicability date, including
potential uncertainty raised by some banks regarding how to comply with
Sec. __.16 as of April 1, 2024. As a result, and as discussed further
below, the agencies are extending the applicability date of Sec. __.16
to January 1, 2026.
Specifically, the agencies recognize that Sec. __.16 references
certain provisions and terms of the 2023 CRA Final Rule that do not
apply until January 1, 2026.\10\ For example, Sec. __.16(a) references
``the performance tests and strategic plan described in Sec. __.21''
of the 2023 CRA Final Rule, which are not applicable until January 1,
2026.\11\ Additionally, the asset-size thresholds for intermediate
small banks and large banks in the agencies' legacy CRA regulations
\12\ (which apply during the transition period) and the asset-size
thresholds for intermediate banks and large banks in the 2023 CRA Final
Rule \13\ (which apply as of January 1, 2026) are different. Thus,
certain banks that will be considered large banks during the transition
period may be considered intermediate banks after the transition period
ends, on January 1, 2026. As a result, these large banks will be
required to delineate facility-based assessment areas consisting of
full counties beginning on April 1, 2024; \14\ however, once they are
re-designated as intermediate banks as of January 1, 2026, these same
banks will have the option to delineate facility-based assessment areas
consisting of partial counties.\15\ Finally, delineating facility-based
assessment areas under new requirements beginning April 1, 2024,
involves evaluating banks according to different facility-based
assessment area delineation standards within a single year.
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\10\ See Sec. __.51(a)(2)(i) (listing the provisions of the
2023 CRA Final Rule that apply as of January 1, 2026, including
Sec. __.12 (Definitions) and Sec. __.21 (Evaluation of CRA
performance in general)).
\11\ See Sec. __.51(a).
\12\ See Sec. 25.12(u) of appendix G to 12 CFR part 25 (OCC);
Sec. 228.12(u) of appendix G to 12 CFR part 228 (Board); and Sec.
345.12(u) of appendix G to 12 CFR part 345 (defining ``small bank''
and ``intermediate small bank''). See also 88 FR 87895 (Dec. 20,
2023) and OCC Bulletin 2023-40 (December 26, 2023) for bank asset-
size thresholds effective as of January 1, 2024.
\13\ See Sec. Sec. 25.12 (OCC); 228.12 (Board); and 345.12
(FDIC) (defining ``intermediate bank'' and ``large bank'') as
amended by the 2023 CRA Final Rule.
\14\ See Sec. __.16(b)(2).
\15\ See Sec. __.16(b)(3).
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On further consideration, the agencies are aligning the
applicability date of Sec. __.16 with the applicability date of the
performance tests \16\ and other geographic area provisions \17\--
January 1, 2026--to promote greater stability
[[Page 22063]]
and certainty for banks and other stakeholders in transitioning to the
provisions of the 2023 CRA Final Rule. In addition, by moving the
applicability date to the beginning of a calendar year, the interim
final rule will eliminate potential confusion resulting from evaluating
banks according to different facility-based assessment area delineation
standards within a single year.
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\16\ See Sec. __.22 (Retail lending test), Sec. __.23 (Retail
services and products test), Sec. __.24 (Community development
financing test), Sec. __.25 (Community development services test),
and Sec. __.26 (Limited purpose banks), Sec. __.29 (Small bank
performance evaluation), and Sec. __.30 (Intermediate bank
performance evaluation). See also Sec. __.27 (Strategic plan).
\17\ See Sec. __.17 (Retail lending assessment areas), Sec.
__.18 (Outside retail lending areas), and Sec. __.19 (Areas for
eligible community development loans, community development
investments, and community development services).
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Content and availability of public file (Section __.43). Section
__.43 of the 2023 CRA Final Rule requires a bank to maintain a public
file, in either paper or digital format, that includes specific
information related to the bank's branches, services, and performance
in helping meet community credit needs. Section __.51(a) of the 2023
CRA Final Rule provides that the public file provision in Sec. __.43
applies as of April 1, 2024.
As detailed in the 2023 CRA Final Rule, Sec. __.43 largely retains
the public file requirements of the agencies' legacy CRA
regulations,\18\ with revisions to clarify aspects of the requirements
and to reflect relevant terminology and provisions of the 2023 CRA
Final Rule.\19\ Under the agencies' legacy CRA regulations, a bank's
entire public file must be available for public inspection upon request
at no cost: (1) at its main office; and (2) if a bank operates in more
than one State, at one branch office in each of these States.\20\ The
2023 CRA Final Rule revised the agencies' legacy CRA regulations to
require any bank with a public website to include its CRA public file
on its website.\21\ If a bank does not maintain a public website, the
2023 CRA Final Rule requires a bank to maintain public file information
consistent with the agencies' legacy CRA regulations--namely, at the
main office and, if an interstate bank, at one branch office in each
State.\22\
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\18\ See 12 CFR __.43 of the agencies' legacy CRA regulations.
\19\ See 89 FR 6574, 7082-7085 (Feb. 1, 2024). For example, for
reasons explained in the 2023 CRA Final Rule, the agencies clarified
the meaning of ``current year'' in provisions requiring banks to
include in the public file: all written comments received from the
public for the current year and the prior two calendar years related
to the bank's performance in helping to meet community credit needs,
along with any responses by the bank (Sec. __.43(a)(1)); and a list
of branches opened or closed by the bank during the current year and
each of the prior two calendar years (Sec. __.43(a)(4)).
Specifically, ``current year'' was clarified to require updates to
the public file ``on a quarterly basis for the prior quarter by
March 31, June 30, September 30, and December 31.'' See Sec.
__.43(a)(1) and (a)(4).
\20\ See 12 CFR __.43(c)(1) of the agencies' legacy CRA
regulations.
\21\ See Sec. __.43(c)(1).
\22\ See Sec. __.43(c)(2).
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As with Sec. __.16, the agencies believe that moving the
applicability date of Sec. __.43 from April 1, 2024, to January 1,
2026, will alleviate potential confusion in complying with the public
file requirements and promote greater stability and certainty for banks
and other stakeholders in transitioning to the provisions of the 2023
CRA Final Rule. Consistent with the considerations discussed above
regarding Sec. __.16, the agencies recognize that Sec. __.43
references certain provisions and terms of the 2023 CRA Final Rule that
do not apply until January 1, 2026, or January 1, 2027.\23\ For
example, Sec. __.43 refers to terms defined in Sec. __.12 of the 2023
CRA Final Rule that do not apply until January 1, 2026, such as
``facility-based assessment areas;'' \24\ ``retail lending assessment
areas;'' \25\ ``operations subsidiaries'' or ``operating
subsidiaries;'' \26\ ``large bank;'' \27\ and ``small bank.'' \28\
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\23\ See Sec. __.51(a)(2)(i) (listing the provisions of the
2023 CRA Final Rule that apply as of January 1, 2026, including
Sec. __.12 (Definitions) and Sec. __.21 (Evaluation of CRA
performance in general), and January 1, 2027 (Reporting
requirements)).
\24\ See Sec. __.43(a)(6) and (c)(2)(ii)(B).
\25\ See Sec. __.43(a)(6).
\26\ See Sec. __.43(b)(1) and (b)(2)(i).
\27\ See Sec. __.43(b)(2)(ii).
\28\ See Sec. __.43(b)(3).
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In addition, aligning the applicability date of Sec. __.43 with
the performance tests of the 2023 CRA Final Rule--January 1, 2026--will
ensure consistency in the public file requirements concerning consumer
loans during the transition to the 2023 CRA Final Rule. Under the
public file provision of the agencies' legacy CRA regulations, the
public file of a bank (other than a small bank or a bank that was a
small bank during the prior calendar year, as defined in the agencies'
legacy CRA regulations \29\) must include data pertaining to any
category of consumer loans the bank has elected to have considered
under the lending test.\30\ Section __.43 of the 2023 CRA Final Rule,
however, does not require disclosure of consumer loan information in
the public file because most consumer loans will be considered
qualitatively under the Retail Services and Products Test (Sec.
__.23),\31\ with the exception of automobile loans for certain banks as
specified in the Retail Lending Test provision of the 2023 CRA Final
Rule (Sec. __.22). Again, these performances tests are not applicable
until January 1, 2026.\32\
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\29\ See Sec. __.12(u) of the agencies' legacy CRA regulations;
see also 88 FR 87895 (Dec. 20, 2023) and OCC Bulletin 2023-40 (Dec.
26, 2023) (asset-size of a ``small bank'' as of Jan. 1, 2024).
\30\ See Sec. __.43(b)(1)(i) of the agencies' legacy CRA
regulations.
\31\ See 89 FR 6574, 7084 (Feb. 1, 2024).
\32\ See Sec. __.51(a)(2)(i).
---------------------------------------------------------------------------
In the preamble to the 2023 CRA Final Rule, the agencies noted
their commitment to engage with stakeholders in the implementation
process and ensure that all stakeholders understand the regulatory
requirements.\33\ Consistent with this commitment, the agencies have
determined that extending the applicability date of Sec. Sec. __.16
and __.43 to January 1, 2026, is the most clear, timely, and effective
way to avoid potential uncertainty that could result from an April 1,
2024 applicability date for these provisions. The agencies remain
committed to providing guidance and related resources on Sec. Sec.
__.16 and __.43, as well as all other aspects of the 2023 CRA Final
Rule.
---------------------------------------------------------------------------
\33\ See 89 FR 6574, 7093 (Feb. 1, 2024).
---------------------------------------------------------------------------
Although these amendments take effect on April 1, 2024, to coincide
with the effective date of the 2023 CRA Final Rule, the agencies are
requesting public comment on the changes to the applicability date for
the facility-based assessment areas and public file provisions in
Sec. Sec. __.16 and __.43, respectively.
III. Technical Amendments
The agencies are issuing a final rule that makes technical
amendments to the 2023 CRA Final Rule and related regulations, as
described below. These technical amendments do not change the substance
or meaning of the 2023 CRA Final Rule.
Public notice (Section __.44). The agencies are amending the 2023
CRA Final Rule to clarify the agencies' intention that banks may
continue to use the CRA Notice in the agencies' legacy CRA regulations
until January 1, 2026. Section __.44 of the 2023 CRA Final Rule
requires a bank to provide a CRA Notice in the public area of its main
office and each of its branches, as set forth in appendix F, that
includes, among other things, information about the availability of a
bank's public file, the appropriate Federal financial supervisory
agency's CRA examination schedule, and how a member of the public may
provide public comment. The posting requirement in Sec. __.44 is
substantively the same as the longstanding CRA public notice
requirement in 12 CFR __.44 (referencing the CRA Notice in appendix B)
of the agencies' legacy CRA regulations, which are reproduced in
[[Page 22064]]
the 2023 CRA Final Rule as appendix G.\34\
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\34\ See appendix G to 12 CFR part 25 (appendix B) (OCC);
appendix G to 12 CFR part 228 (appendix B) (Board); and appendix G
to 12 CFR part 345 (appendix B) (FDIC).
---------------------------------------------------------------------------
Section __.51(a) of the 2023 CRA Final Rule provides that the
public notice requirements in Sec. __.44 apply as of April 1, 2024,
but Sec. __.51(a) of the 2023 CRA Final Rule also provides that the
CRA Notice reproduced in appendix F is applicable on January 1, 2026.
Further, Sec. __.51(a) provides that, with respect to provisions that
are not applicable until after April 1, 2024, banks must instead comply
with relevant provisions of the agencies' legacy CRA regulations, set
forth in appendix G to the 2023 CRA Final Rule.\35\ Thus, because
appendix F expressly does not apply until January 1, 2026, banks would
need to comply with Sec. __.44 of the 2023 CRA Final Rule as of April
1, 2024, but use the CRA Notice in appendix G of the 2023 CRA Final
Rule, which is the same notice banks were required to use prior to the
2023 CRA Final Rule.
---------------------------------------------------------------------------
\35\ See Sec. __.51(a)(2)(iii) (cross-referencing Sec.
__.51(a)(2)(i) and (ii)).
---------------------------------------------------------------------------
The agencies are amending Sec. __.51(a)(2)(i) to align the
applicability date of the substantive public notice requirements in
Sec. __.44 with the applicability date of the CRA Notice in appendix
F. The amendment to move the applicability date of Sec. __.44 of the
2023 CRA Final Rule to January 1, 2026, has no substantive effect. By
providing that both Sec. __.44 and appendix F are applicable as of
January 1, 2026, amended Sec. __.51(a)(2)(i) clarifies the agencies'
intention in the 2023 CRA Final Rule that banks may continue to use the
CRA Notice in the agencies' legacy CRA regulations, as provided in
appendix G, to comply with public notice requirements until January 1,
2026.
Asset-size thresholds. As noted, appendix G of the 2023 CRA Final
Rule includes the agencies' legacy CRA regulations, and reflects those
regulations as of the date the agencies adopted the 2023 CRA Final
Rule, October 24, 2023. Since that date, the agencies have increased
the bank asset-size thresholds based on the year-to-year change in the
average of the Consumer Price Index for Urban Wage Earners and Clerical
Workers, pursuant to the annual inflation adjustment mechanism in the
agencies' legacy CRA regulations,\36\ and the Board and the FDIC have
amended their regulations to reflect this increase.\37\ These new
asset-size thresholds are: (1) for small banks, less than $1.564
billion as of December 31 of either of the prior two calendar years;
and (2) for intermediate small banks, at least $391 million as of
December 31 of both of the prior two calendar years and less than
$1.564 billion as of December 31 of either of the prior two calendar
years. The Board and the FDIC are updating the asset-size thresholds in
appendix G to reflect these updated thresholds so that appendix G
remains consistent with their legacy CRA regulations, as intended.
---------------------------------------------------------------------------
\36\ See Sec. Sec. __.12(u)(2) of the agencies' legacy CRA
regulations.
\37\ 88 FR 87895 (Dec. 20, 2023). The OCC does not amend its CRA
regulation to reflect the annually adjusted asset-size thresholds.
Instead, it issues an OCC Bulletin to announce the revised
thresholds. See OCC Bulletin 2023-40 (December 26, 2023).
---------------------------------------------------------------------------
Agency-specific technical amendments. The agencies are adopting a
technical amendment to the agency-specific amendments in the 2023 CRA
Final Rule to add a missing conforming amendment in their strategic
plan provisions, Sec. __.27. This amendment changes ``[Operations
subsidiaries or operating subsidiaries]'' to ``Operation subsidiaries''
for the Board and ``Operating subsidiaries'' for the OCC and the FDIC.
The Board and the FDIC also are adopting technical amendments to
correct errors in amendatory instructions 50.c. and 73.c. in the 2023
CRA Final Rule that made the instructions inoperable. These amendments
correct cross-references in appendix B (Calculations for the Community
Development Tests) to the 2023 CRA Final Rule. Further, the Board is
making a technical amendment to its authority section in Sec. 228.11
of the 2023 CRA Final Rule to replace ``the Federal Reserve'' with
``the Board.''
CRA Sunshine regulations and OCC Public Welfare Investment
regulation. The agencies are amending their CRA Sunshine regulations
\38\ to update the cross-references explained below to conform with
changes made by the 2023 CRA Final Rule.\39\ In 2001, the OCC, the
Board, the FDIC, and the Office of Thrift Supervision (OTS) published
joint rules to implement the CRA sunshine requirements of section 48 of
the Federal Deposit Insurance Act, which were contained in section 711
of the Gramm-Leach-Bliley Act.\40\ This statute requires
nongovernmental entities or persons, insured depository institutions,
and affiliates of insured depository institutions that are parties to
certain agreements in fulfillment of the CRA to make the agreements
available to the public and the appropriate agency and to file annual
reports concerning the agreements with the appropriate agency. The CRA
Sunshine regulations contain a number of cross-references to the
agencies' CRA regulations.
---------------------------------------------------------------------------
\38\ See 12 CFR parts 35 (OCC), 207 (Regulation G) (Board), and
346 (FDIC).
\39\ See 89 FR 6574, 6579 (Feb. 1, 2024) (explaining in footnote
14 of the 2023 CRA Final Rule that the agencies would, at a later
date, evaluate other rules that cross-reference to the CRA
regulations to identify conforming changes that may be appropriate).
\40\ See 66 FR 2052 (Jan. 10, 2001). Since this issuance, the
OTS's CRA Sunshine regulation and its rulemaking authority for the
CRA sunshine requirements for Federal savings associations
transferred to the OCC pursuant to Title III of the Dodd-Frank Wall
Street Reform and Consumer Protection Act, Public Law 111-203, 124
Stat. 1376, 1522 (2010).
---------------------------------------------------------------------------
In addition, the OCC is amending its Public Welfare Investment
regulation, 12 CFR part 24, to update cross-references to its CRA
regulation, 12 CFR part 25, to conform with changes made by the 2023
CRA Final Rule.\41\ Part 24 currently provides that a national bank or
national bank subsidiary may make an investment if the investment
primarily benefits low- and moderate-income individuals, low- and
moderate-income areas, or other areas targeted by a governmental entity
for redevelopment, or the investment would receive consideration under
12 CFR 25.23 as a ``qualified investment.''
---------------------------------------------------------------------------
\41\ The Board's public welfare investment regulations do not
cite to its CRA regulations, and thus do not need to be amended. See
12 CFR 208.22. The FDIC does not have public welfare investment
regulations.
---------------------------------------------------------------------------
The conforming amendments to the agencies' CRA Sunshine regulations
and the OCC's Public Welfare Investment regulation update the cross-
references from provisions in the agencies' legacy CRA regulations to
reference the appropriate provisions in appendix G of the 2023 CRA
Final Rule. As noted above, appendix G reproduces the agencies' legacy
CRA regulations, which apply to banks until superseded by the
provisions of the 2023 CRA Final Rule that become applicable on January
1, 2026, or January 1, 2027. The agencies will update the cross-
references in the CRA Sunshine regulations again in the future to
reflect the appropriate provisions in the 2023 CRA Final Rule prior to
these future applicability dates.
Technical amendment to 12 CFR part 192. The OCC regulations
governing how a savings association may convert from mutual to stock
form of ownership, 12 CFR part 192, currently include a cross-reference
to the OCC's former CRA regulation for savings associations, 12 CFR
part 195. The OCC integrated its CRA regulation for savings
associations into 12 CFR part 25 and repealed part 195 in 2021.\42\ The
OCC is updating this cross-reference, contained in 12 CFR
[[Page 22065]]
192.200(c), to now refer to 12 CFR part 25.
---------------------------------------------------------------------------
\42\ See 86 FR 71328 (Dec. 15, 2021).
---------------------------------------------------------------------------
IV. Regulatory Analysis
Administrative Procedure Act
The interim final rule and technical amendments are effective on
April 1, 2024. The Administrative Procedure Act \43\ (APA) generally
requires public notice and an opportunity for comment before a rule
becomes effective.\44\ However, the APA provides that the notice-and-
comment requirements do not apply ``when the agency for good cause
finds (and incorporates the finding and a brief statement of reasons
therefor in the rules issued) that notice and public procedure thereon
are impracticable, unnecessary, or contrary to the public interest.''
\45\
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\43\ 5 U.S.C. 551 et seq.
\44\ See 5 U.S.C. 553(b)(A) and (B).
\45\ 5 U.S.C. 553(b)(B).
---------------------------------------------------------------------------
In addition, the APA requires that rules be published not less than
30 days before their effective date.\46\ However, the APA provides that
the requirement for a 30-day delay before the effective date of a rule
does not apply: (1) for substantive rules which grant or recognize an
exemption or relieve a restriction; (2) for interpretative rules and
statements of policy; or (3) as otherwise provided by the agency ``for
good cause found and published with the rule.'' \47\
---------------------------------------------------------------------------
\46\ See 5 U.S.C. 553(d).
\47\ 5 U.S.C. 553(d)(1)-(3).
---------------------------------------------------------------------------
As described below, the agencies have determined that there is good
cause for adopting the amendments in the interim final rule without
advance notice and comment and with less than 30 days before its
effective date, and for adopting the technical amendments as a final
rule without notice and comment and with less than 30 days before its
effective date.
Interim final rule. The agencies have determined that advance
public comment on the amendment to extend the applicability date of
Sec. __.16 (Facility-based assessment areas) and Sec. __.43 (Content
and availability of public file) of the 2023 CRA Final Rule to January
1, 2026, is impracticable, unnecessary, or contrary to the public
interest. Compared to the legacy CRA regulations, Sec. __.16 requires
certain changes to the requirements for delineating CRA assessment
areas based on a bank's deposit-taking facilities,\48\ and Sec. __.43
similarly requires banks to make certain adjustments to comply with
changes to the public file requirements.\49\ As discussed further in
the SUPPLEMENTARY INFORMATION of this preamble, the agencies have
determined that extending the applicability date of Sec. Sec. __.16
and __.43 to January 1, 2026, will facilitate bank understanding of,
and compliance with, these provisions; allay potential uncertainty that
may be associated with an April 1, 2024 applicability date; and further
secure a stable transition from the agencies' legacy CRA regulations to
the provisions of the 2023 CRA Final Rule, for the benefit of all
stakeholders. To realize these benefits, the relief provided by this
interim final rule is needed on or before April 1, 2024. Advance public
comment would impede effectuation of the interim final rule in time to
provide the necessary relief.
---------------------------------------------------------------------------
\48\ See 89 FR 6728-6735 (Feb. 1, 2024).
\49\ See 89 FR 7082-7085 (Feb. 1, 2024).
---------------------------------------------------------------------------
For the reasons stated above, the agencies also find good cause for
this amendment to be effective less than 30 days after publication in
the Federal Register, on April 1, 2024. In particular, the agencies
note both the time-sensitive nature of providing the relief, with the
applicability date of Sec. Sec. __.16 and __.43 otherwise being April
1, 2024, but also that, consistent with another enumerated exception
from APA timing requirements noted above, the amendment provides relief
from new requirements in Sec. Sec. __.16 and __.43.\50\
---------------------------------------------------------------------------
\50\ See 5 U.S.C. 553(d)(1) and (3).
---------------------------------------------------------------------------
While the agencies believe that there is good cause to issue this
interim final rule without advance notice and comment and with an
effective date of April 1, 2024, the agencies are interested in the
views of the public and request comment on moving the applicability
date of Sec. Sec. __.16 and __.43 from April 1, 2024, to January 1,
2026.
Technical amendments. As explained further in the SUPPLEMENTARY
INFORMATION of this preamble, the amendment to add Sec. __.44 (Public
notice) to the provisions that will apply on January 1, 2026, is a
technical amendment with no substantive effect. Amending the
applicability date for the public notice provision facilitates
compliance by clarifying that banks may continue to use the CRA Notice
in the agencies' legacy CRA regulations \51\ until appendix F becomes
applicable on January 1, 2026. The agencies therefore find that public
comment regarding this amendment is impracticable, unnecessary, or
contrary to the public interest. For the same reasons, the agencies
also find good cause for an exception to the APA 30-day notice
requirement. Providing that this amendment takes effect on April 1,
2024, clarifies the application of these provisions and ensures that
banks have timely certainty of the CRA Notice form they may use as of
the 2023 CRA Final Rule's April 1, 2024, effective date.
---------------------------------------------------------------------------
\51\ See appendix B to the agencies' legacy CRA regulations in
appendix G of the 2023 CRA Final Rule.
---------------------------------------------------------------------------
The technical amendments to the bank asset-size thresholds in the
Board's and the FDIC's appendix G of the 2023 CRA Final Rule update
these thresholds to reflect subsequent amendments to the thresholds, so
that the Board's and FDIC's appendix G remains consistent with the
legacy CRA regulations, as intended. The Board and the FDIC issued
these amendments through a final rule published in the Federal Register
after they approved the 2023 CRA Final Rule.\52\ Accordingly, the Board
and the FDIC find good cause for an exemption from the APA's public
notice and comment procedures because public comment regarding these
amendments is unnecessary. In addition, the agencies find that good
cause exists for these amendments to be effective less than 30 days
after publication in the Federal Register because the thresholds in
appendix G of the Board's and the FDIC's CRA regulations will be
immediately inaccurate as of April 1, 2024, absent the amendments in
this final rule.
---------------------------------------------------------------------------
\52\ See 88 FR 87895 (Dec. 20, 2023).
---------------------------------------------------------------------------
The technical amendments that update cross-references in the
agencies' CRA Sunshine regulations and the OCC's Public Welfare
Investment regulation correct citations that will be inaccurate as of
April 1, 2024, when the 2023 CRA Final Rule is effective, and do not
change the substance or meaning of the affected regulations. The
agencies accordingly find good cause for an exemption from the APA's
public notice and comment procedures because public comment regarding
these amendments is unnecessary. In addition, the agencies find that
good cause exists for these amendments to be effective less than 30
days after publication in the Federal Register because the citations of
the affected regulations will be immediately inaccurate as of April 1,
2024, absent the amendments in this final rule. Similarly, the OCC's
amendment to its conversions from mutual to stock form regulation
corrects an outdated cross-reference and has no substantive effect.
Therefore, the OCC finds good cause for an exemption from the APA's
public notice and comment provision and the 30-day effective date
provision because public comment and a delayed effective
[[Page 22066]]
date on this amendment are unnecessary.
Congressional Review Act
For purposes of the Congressional Review Act,\53\ the Office of
Management and Budget (OMB) makes a determination as to whether a final
rule constitutes a ``major rule.'' 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. 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--(1) an annual effect on the economy of $100 million or more;
(2) a major increase in costs or prices for consumers, individual
industries, Federal, State, or local government agencies, or geographic
regions; or (3) 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.\54\ The agencies will submit the interim
final rule and technical amendments to the OMB for this major rule
determination. As required by the Congressional Review Act, the
agencies will submit the appropriate report to Congress and the
Government Accountability Office for review.\55\
---------------------------------------------------------------------------
\53\ 5 U.S.C. 801 et seq.
\54\ See 5 U.S.C. 804(2).
\55\ See 5 U.S.C. 801(a)(1).
---------------------------------------------------------------------------
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 \56\ 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 OMB control
number. The agencies have determined that the interim final rule and
technical amendments do not create any new, or revise any existing,
collections of information pursuant to the Paperwork Reduction Act.
---------------------------------------------------------------------------
\56\ 44 U.S.C. 3501-3521.
---------------------------------------------------------------------------
Regulatory Flexibility Act
Under the Regulatory Flexibility Act (RFA),\57\ an agency must
consider the impact of its rules on small entities. Specifically,
section 3 of the RFA requires an agency to provide a final regulatory
flexibility analysis with a final rule unless the head of the agency
certifies that the rule will not have a significant economic impact on
a substantial number of small entities \58\ and publishes this
certification and a statement of its factual basis in the Federal
Register. However, the RFA does not apply to a rulemaking when a
general notice of proposed rulemaking is not required.\59\ As described
above, the agencies have determined that they are not required to
publish a general notice of proposed rulemaking for the interim final
rule or for the technical amendments. Accordingly, the RFA's
requirements relating to an initial and final regulatory flexibility
analysis do not apply.
---------------------------------------------------------------------------
\57\ 5 U.S.C. 601 et seq.
\58\ Small Business Administration regulations currently define
small entities to include banks and savings associations with total
assets of $850 million or less, and trust banks with total assets of
$47.0 million or less. See 13 CFR 121.201, Section 52--Finance and
Insurance, Subsectors 522 (Credit Intermediation and Related
Activities) and 523 (Securities, Commodity Contracts, and Other
Financial Investments and Related Activities).
\59\ See 5 U.S.C. 603 and 604.
---------------------------------------------------------------------------
Riegle Community Development and Regulatory Improvement Act of 1994
Pursuant to section 302(a) of the Riegle Community Development and
Regulatory Improvement Act of 1994 (RCDRIA),\60\ in determining the
effective date and administrative compliance requirements for new
regulations that impose additional reporting, disclosure, or other
requirements on insured depository institutions, an agency must
consider, consistent with principles of safety and soundness and the
public interest: (1) any administrative burdens that the rule will
place on depository institutions, including small depository
institutions and customers of depository institutions; and (2) the
benefits of the rule.
---------------------------------------------------------------------------
\60\ 12 U.S.C. 4802(a).
---------------------------------------------------------------------------
Section 302(b) of RCDRIA \61\ provides that new regulations and
amendments to regulations prescribed by a Federal banking agency which
impose additional reporting, disclosures, or other new requirements on
insured depository institutions must generally take effect on the first
day of a calendar quarter which begins on or after the date on which
the regulations are published in final form.
---------------------------------------------------------------------------
\61\ 12 U.S.C. 4802(b).
---------------------------------------------------------------------------
The interim final rule and technical amendments do not impose any
additional reporting, disclosure, or other new requirements. Instead,
the interim final rule extends the applicability date of the 2023 CRA
Final Rule's facility-based assessment areas provision and public file
provision, while the technical amendments make non-substantive changes
to the agencies' CRA regulations, the agencies' CRA Sunshine
regulations, the OCC's Public Welfare Investment regulation, and the
OCC's mutual to stock conversion regulation. Therefore, subsections (a)
and (b) of section 302 of RCDRIA are not applicable to this rulemaking
action. However, the amendments made by this rulemaking action are
effective on April 1, 2024, which is the first date of a calendar
quarter.
Plain Language
Section 722(a) of the Gramm-Leach-Bliley Act \62\ requires each
Federal banking agency to use plain language in its proposed and final
rulemakings. In this document, the agencies use plain language.
---------------------------------------------------------------------------
\62\ 12 U.S.C. 4809(a).
---------------------------------------------------------------------------
Unfunded Mandates Reform Act
As a general matter, the UMRA \63\ requires the OCC to prepare a
budgetary impact statement before promulgating a rule that includes a
Federal mandate that may result in the expenditure by State, local, and
tribal governments, in the aggregate, or by the private sector, of $100
million or more (adjusted annually for inflation and currently $182
million) in any one year. However, the UMRA does not apply to final
rules for which a general notice of proposed rulemaking was not
published.\64\ As described above, the OCC has found good cause for an
exception to the APA's notice and comment for the interim final rule
and technical amendments. Therefore, the OCC has not prepared an
economic analysis of the rule under the UMRA.
---------------------------------------------------------------------------
\63\ 2 U.S.C. 1531 et seq.
\64\ See 2 U.S.C. 1532(a).
---------------------------------------------------------------------------
V. Federal Register Correction
The OCC is making a correction to its UMRA discussion in the
preamble to the 2023 CRA Final Rule (RIN 1557-AF15). This correction
clarifies the OCC's expenditure estimates in consideration of the 2023
CRA Final Rule transition provisions.
Correction
In rule document 2023-25797 at 89 FR 6574 in the issue of February
1, 2024, on page 7106, in the second column, the second paragraph that
carries over to the third column is corrected to read as follows:
Were the final rule to require full compliance within the first
12 months of the transition period, the OCC estimates that
expenditures to comply with mandates during those twelve months
would not exceed approximately $91.8 million (approximately $7.9
million associated with increased data collection, recordkeeping or
reporting; $82 million for large banks to collect, maintain, and
report annually
[[Page 22067]]
geographic data on deposits; and $1.9 million for banks' strategic
plan submissions).\1644\ Under the final rule transition provisions,
banks have longer than one year, until January 1, 2026, for most
substantive provisions, and January 1, 2027, for the reporting
requirements, to fully comply with the rule. Therefore, the OCC
concludes that the final rule will not result in an expenditure by
State, local, and tribal governments, in the aggregate, or by the
private sector of $100 million or more (adjusted for inflation and
currently $182 million annually) in any one year. Accordingly, the
OCC has not prepared the budgetary impact statement.
* * * * *
\1644\ Several commenters addressed the OCC's UMRA analysis of
the proposed rule. Some of these commenters stated that the agency
underestimated burden of the proposed rule, and others noted that
the OCC provided insufficient information about its actual
calculations. In drafting the final rule, the OCC considered these
comments and made changes from the proposal where appropriate.
List of Subjects
12 CFR Part 24
Community development, Credit, Investments, Low and moderate income
housing, Manpower, National banks, Reporting and recordkeeping
requirements, Rural areas, Small businesses.
12 CFR Part 25
Community development, Credit, Investments, National banks,
Reporting and recordkeeping requirements, Savings associations.
12 CFR Part 35
Community development, Credit, Freedom of information, Investments,
National banks, Reporting and recordkeeping requirements.
12 CFR Part 192
Reporting and recordkeeping requirements, Savings associations,
Securities.
12 CFR Part 207
Banks, Banking, Community development, Holding companies, Reporting
and recordkeeping requirements.
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.
12 CFR Part 346
Banks, Banking, Savings associations.
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Chapter I
Authority and Issuance
For the reasons set forth in the preamble and under the authority
of 12 U.S.C. 93a and 2905, the Office of the Comptroller of the
Currency amends chapter I of title 12 of the Code of Federal
Regulations as follows:
PART 24--COMMUNITY AND ECONOMIC DEVELOPMENT ENTITIES, COMMUNITY
DEVELOPMENT PROJECTS, AND OTHER PUBLIC WELFARE INVESTMENTS
0
1. The authority citation for part 24 is revised to read as follows:
Authority: 12 U.S.C. 24(Eleventh), 93a, 481, and 1818.
Sec. 24.2 [Amended]
0
2. Amend Sec. 24.2 by:
0
a. In the introductory text of paragraph (c), removing ``12 CFR 25.23''
and adding ``Sec. 25.23 of appendix G to 12 CFR part 25'' in its
place.
0
b. In paragraph (f), removing ``12 CFR 25.12(m)'' and adding ``Sec.
25.12(m) of appendix G to 12 CFR part 25'' in its place.
Sec. 24.3 [Amended]
0
3. Amend Sec. 24.3 by removing ``12 CFR 25.23'' and adding ``Sec.
25.23 of appendix G to 12 CFR part 25'' in its place.
Sec. 24.7 [Amended]
0
4. Amend Sec. 24.7 in paragraph (b) by removing ``12 CFR 25.23'' and
adding ``Sec. 25.23 of appendix G to 12 CFR part 25'' in its place.
PART 25--COMMUNITY REINVESTMENT ACT AND INTERSTATE DEPOSIT
PRODUCTION REGULATIONS
0
5. The authority citation for part 25 continues to read as follows:
Authority: 12 U.S.C. 21, 22, 26, 27, 30, 36, 93a, 161, 215,
215a, 481, 1462a, 1463, 1464, 1814, 1816, 1828(c), 1835a, 2901
through 2908, 3101 through 3111, and 5412(b)(2)(B).
Sec. 25.27 [Amended]
0
6. Amend Sec. 25.27 in the headings of paragraphs (c)(4) and (c)(4)(i)
by removing the text ``[Operations subsidiaries or operating
subsidiaries]'' wherever it appears and adding the text ``Operating
subsidiaries'' in its place.
Sec. 25.51 [Amended]
0
7. Amend Sec. 25.51 in paragraph (a)(2)(i) by removing the text
``Sec. Sec. 25.12 through 25.15, 25.17 through 25.30, and 25.42(a)''
and adding the text ``Sec. Sec. 25.12 through 25.30, 25.42(a), 25.43,
and 25.44'' in its place.
PART 35--DISCLOSURE AND REPORTING OF CRA-RELATED AGREEMENTS
0
8. The authority citation for part 35 continues to read as follows:
Authority: 12 U.S.C. 1, 93a, 1462a, 1463, 1464, 1831y, and
5412(b)(2)(B).
0
9. Amend Sec. 35.1 by revising paragraph (c) to read as follows:
Sec. 35.1 Purpose and scope of this part.
* * * * *
(c) Relation to Community Reinvestment Act. This part does not
affect in any way the Community Reinvestment Act of 1977 (CRA) (12
U.S.C. 2901 et seq.), part 25 of this chapter (Community Reinvestment
Act and Interstate Deposit Production Regulations), or the OCC's
interpretations or administration of that Act or part 25.
* * * * *
0
10. Amend Sec. 35.4 by revising paragraph (a)(2) to read as follows:
Sec. 35.4 Fulfillment of the CRA.
(a) * * *
(2) Activities given favorable CRA consideration. Performing any of
the following activities if the activity is of the type that is likely
to receive favorable consideration by a Federal banking agency in
evaluating the performance under the CRA of the insured depository
institution that is a party to the agreement or an affiliate of a party
to the agreement--
(i) Home-purchase, home-improvement, small business, small farm,
community development, and consumer lending, as described in Sec.
25.22 of appendix G to 12 CFR part 25, including loan purchases, loan
commitments, and letters of credit;
(ii) Making investments, deposits, or grants, or acquiring
membership shares, that have as their primary purpose community
development, as described in Sec. 25.23 of appendix G to 12 CFR part
25;
(iii) Delivering retail banking services, as described in Sec.
25.24(d) of appendix G to 12 CFR part 25;
(iv) Providing community development services, as described in
Sec. 25.24(e) of appendix G to 12 CFR part 25;
(v) In the case of a wholesale or limited-purpose insured
depository
[[Page 22068]]
institution, community development lending, including originating and
purchasing loans and making loan commitments and letters of credit,
making qualified investments, or providing community development
services, as described in Sec. 25.25(c) of appendix G to 12 CFR part
25;
(vi) In the case of a small insured depository institution, any
lending or other activity described in Sec. 25.26(a) of appendix G to
12 CFR part 25; or
(vii) In the case of an insured depository institution that is
evaluated on the basis of a strategic plan, any element of the
strategic plan, as described in Sec. 25.27(f) of appendix G to 12 CFR
part 25.
* * * * *
Sec. 35.6 [Amended]
0
11. Amend Sec. 35.6 in paragraph (b)(7) by removing ``(12 CFR 25.43)''
and adding ``of appendix G to 12 CFR part 25'' in its place.
Sec. 35.11 [Amended]
0
12. Amend Sec. 35.11 in paragraph (d) by removing ``(12 CFR 25.43)''
and adding ``of appendix G to 12 CFR part 25'' in its place.
PART 192--CONVERSIONS FROM MUTUAL TO STOCK FORM
0
13. The authority citation for part 192 continues to read as follows:
Authority: 12 U.S.C. 1462a, 1463, 1464, 1467a, 2901 et seq.,
5412(b)(2)(B); 15 U.S.C. 78c, 78l, 78m, 78n, 78w.
Sec. 192.200 [Amended]
0
14. Amend Sec. 192.200 in paragraph (c) introductory text by removing
``under 12 CFR part 195'' and adding ``under 12 CFR part 25'' in its
place.
FEDERAL RESERVE SYSTEM
12 CFR Chapter II
Authority and Issuance
For the reasons discussed in the preamble, the Board of Governors
of the Federal Reserve System amends chapter II of title 12 of the Code
of Federal Regulations as follows:
PART 207--DISCLOSURE AND REPORTING OF CRA-RELATED AGREEMENTS
(REGULATION G)
0
15. The authority citation for part 207 continues to read as follows:
Authority: 12 U.S.C. 1831y.
0
16. Amend Sec. 207.4 by revising paragraph (a)(2) to read as follows:
Sec. 207.4 Fulfillment of the CRA.
(a) * * *
(2) Activities given favorable CRA consideration. Performing any of
the following activities if the activity is of the type that is likely
to receive favorable consideration by a Federal banking agency in
evaluating the performance under the CRA of the insured depository
institution that is a party to the agreement or an affiliate of a party
to the agreement--
(i) Home-purchase, home-improvement, small business, small farm,
community development, and consumer lending, as described in Sec.
228.22 of appendix G to 12 CFR part 228, including loan purchases, loan
commitments, and letters of credit;
(ii) Making investments, deposits, or grants, or acquiring
membership shares, that have as their primary purpose community
development, as described in Sec. 228.23 of appendix G to 12 CFR part
228;
(iii) Delivering retail banking services, as described in Sec.
228.24(d) of appendix G to 12 CFR part 228;
(iv) Providing community development services, as described in
Sec. 228.24(e) of appendix G to 12 CFR part 228;
(v) In the case of a wholesale or limited-purpose insured
depository institution, community development lending, including
originating and purchasing loans and making loan commitments and
letters of credit, making qualified investments, or providing community
development services, as described in Sec. 228.25(c) of appendix G to
12 CFR part 228;
(vi) In the case of a small insured depository institution, any
lending or other activity described in Sec. 228.26(a) of appendix G to
12 CFR part 228; or
(vii) In the case of an insured depository institution that is
evaluated on the basis of a strategic plan, any element of the
strategic plan, as described in Sec. 228.27(f) of appendix G to 12 CFR
part 228.
* * * * *
Sec. 207.6 [Amended]
0
17. Amend Sec. 207.6 in paragraph (b)(7) by removing ``Regulation BB
(12 CFR 228.43)'' and adding ``appendix G to 12 CFR part 228'' in its
place.
Sec. 207.11 [Amended]
0
18. Amend Sec. 207.11 in paragraph (d) by removing ``Regulation BB (12
CFR 228.43)'' and adding ``appendix G to 12 CFR part 228'' in its
place.
PART 228--COMMUNITY REINVESTMENT (REGULATION BB)
0
19. 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.
Sec. 228.11 [Amended]
0
20. Amend Sec. 228.11 in paragraph (a) introductory text by removing
``authorizing the Federal Reserve:'' and adding ``authorizing the
Board:'' in its place.
Sec. 228.27 [Amended]
0
21. Amend Sec. 228.27 in the headings of paragraphs (c)(4) and
(c)(4)(i) by removing the text ``[Operations subsidiaries or operating
subsidiaries]'' wherever it appears and adding the text ``Operations
subsidiaries'' in its place.
Sec. 228.51 [Amended]
0
22. Amend Sec. 228.51 in paragraph (a)(2)(i) by removing the text
``Sec. Sec. 228.12 through 228.15, 228.17 through 228.30, and
228.42(a)'' and adding the text ``Sec. Sec. 228.12 through 228.30,
228.42(a), 228.43, and 228.44'' in its place.
Appendix B to Part 228 [Amended]
0
23. Amend appendix B in paragraphs III.c.1 and 2 by removing the text
``12 CFR 25.42(b), 228.42(b), or 345.42(b)'' and adding the text
``Sec. 228.42(b) or 12 CFR 25.42(b) or 345.42(b)'' in its place.
0
24. Amend appendix G by revising Sec. 228.12(u)(1) to read as follows:
Appendix G to Part 228--Community Reinvestment Act (Regulation BB)
* * * * *
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
$1.564 billion. Intermediate small bank means a small bank with
assets of at least $391 million as of December 31 of both of the
prior two calendar years and less than $1.564 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 discussed in the preamble, the Federal Deposit
Insurance Corporation amends chapter III of title 12 of the Code of
Federal Regulations as follows:
PART 345--COMMUNITY REINVESTMENT
0
25. The authority citation for part 345 continues to read as follows:
[[Page 22069]]
Authority: 12 U.S.C. 1814-1817, 1819-1820, 1828, 1831u and
2901-2908, 3103-3104, and 3108(a).
Sec. 345.27 [Amended]
0
26. Amend Sec. 345.27 in the headings of paragraphs (c)(4) and
(c)(4)(i) by removing the text ``[Operations subsidiaries or operating
subsidiaries]'' wherever it appears and adding the text ``Operating
subsidiaries'' in its place.
Sec. 345.51 [Amended]
0
27. Amend Sec. 345.51 in paragraph (a)(2)(i) by removing the text
``Sec. Sec. 345.12 through 345.15, 345.17 through 345.30, and
345.42(a)'' and adding the text ``Sec. Sec. 345.12 through 345.30,
345.42(a), 345.43, and 345.44'' in its place.
Appendix B to Part 345 [Amended]
0
28. Amend appendix B in paragraphs III.c.1 and 2 by removing ``12 CFR
25.42(b), 228.42(b), or 345.42(b)'' and adding ``Sec. 345.42(b) or 12
CFR 25.42(b) or 228.42(b)'' in its place.
0
29. Amend appendix G by revising Sec. 345.12(u)(1) to read as follows:
Appendix G to Part 345--Community Reinvestment Regulations
* * * * *
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
$1.564 billion. Intermediate small bank means a small bank with
assets of at least $391 million as of December 31 of both of the
prior two calendar years and less than $1.564 billion as of December
31 of either of the prior two calendar years.
* * * * *
PART 346--DISCLOSURE AND REPORTING OF CRA-RELATED AGREEMENTS
0
30. The authority citation for part 346 continues to read as follows:
Authority: 12 U.S.C. 1831y.
0
31. Amend Sec. 346.4 by revising paragraph (a)(2) to read as follows:
Sec. 346.4 Fulfillment of the CRA.
(a) * * *
(2) Activities given favorable CRA consideration. Performing any of
the following activities if the activity is of the type that is likely
to receive favorable consideration by a Federal banking agency in
evaluating the performance under the CRA of the insured depository
institution that is a party to the agreement or an affiliate of a party
to the agreement--
(i) Home-purchase, home-improvement, small business, small farm,
community development, and consumer lending, as described in Sec.
345.22 of appendix G to 12 CFR part 345, including loan purchases, loan
commitments, and letters of credit;
(ii) Making investments, deposits, or grants, or acquiring
membership shares, that have as their primary purpose community
development, as described in Sec. 345.23 of appendix G to 12 CFR part
345;
(iii) Delivering retail banking services as described in Sec.
345.24(d) of appendix G to 12 CFR part 345;
(iv) Providing community development services, as described in
Sec. 345.24(e) of appendix G to 12 CFR part 345;
(v) In the case of a wholesale or limited-purpose insured
depository institution, community development lending, including
originating and purchasing loans and making loan commitments and
letters of credit, making qualified investments, or providing community
development services, as described in Sec. 345.25(c) of appendix G to
12 CFR part 345;
(vi) In the case of a small insured depository institution, any
lending or other activity described in Sec. 345.26(a) of appendix G to
12 CFR part 345; or
(vii) In the case of an insured depository institution that is
evaluated on the basis of a strategic plan, any element of the
strategic plan, as described in Sec. 345.27(f) of appendix G to 12 CFR
part 345.
* * * * *
Sec. 346.6 [Amended]
0
32. Amend Sec. 346.6 in paragraph (b)(7) by removing the text ``12 CFR
345.43'' and adding the text ``Sec. 345.43 of appendix G to 12 CFR
part 345'' in its place.
Sec. 346.11 [Amended]
0
33. Amend Sec. 346.11 in paragraph (d) by removing the text ``12 CFR
345.43'' and adding the text ``Sec. 345.43 of appendix G to 12 CFR
part 345'' in its place.
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 March 21, 2024.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2024-06497 Filed 3-28-24; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P
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