Rule2026-18766
Expanded Examination Cycle for Certain Small Insured Depository Institutions and U.S. Branches and Agencies of Foreign Banks
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
September 14, 2026
Effective
September 14, 2026
Issuing agencies
Treasury DepartmentComptroller of the CurrencyFederal Reserve SystemFederal Deposit Insurance Corporation
Abstract
The OCC, Board, and FDIC (collectively, the Agencies) are jointly issuing and requesting public comment on an interim final rule to implement section 903 of the 21st Century ROAD to Housing Act. The interim final rule raises the asset threshold for certain supervised institutions with less than $6 billion in total assets to qualify for an 18-month on-site examination cycle. The interim final rule also makes parallel changes to the Agencies' regulations governing the on- site examination cycle for U.S. branches and agencies of foreign banks, consistent with the International Banking Act of 1978 (IBA).
Full Text
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<title>Federal Register, Volume 91 Issue 176 (Monday, September 14, 2026)</title>
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[Federal Register Volume 91, Number 176 (Monday, September 14, 2026)]
[Rules and Regulations]
[Pages 58009-58014]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-18766]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 91, No. 176 / Monday, September 14, 2026 /
Rules and Regulations
[[Page 58009]]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 4
[Docket ID OCC-2026-0761]
RIN 1557-AF59
FEDERAL RESERVE SYSTEM
12 CFR Parts 208 and 211
[Docket No. R-1898]
RIN 7100-AH28
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Parts 337 and 347
RIN 3064-AG33
Expanded Examination Cycle for Certain Small Insured Depository
Institutions and U.S. Branches and Agencies of Foreign Banks
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury;
Board of Governors of the Federal Reserve System (Board); and Federal
Deposit Insurance Corporation (FDIC).
ACTION: Joint interim final rule and request for comments.
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SUMMARY: The OCC, Board, and FDIC (collectively, the Agencies) are
jointly issuing and requesting public comment on an interim final rule
to implement section 903 of the 21st Century ROAD to Housing Act. The
interim final rule raises the asset threshold for certain supervised
institutions with less than $6 billion in total assets to qualify for
an 18-month on-site examination cycle. The interim final rule also
makes parallel changes to the Agencies' regulations governing the on-
site examination cycle for U.S. branches and agencies of foreign banks,
consistent with the International Banking Act of 1978 (IBA).
DATES: The interim final rule is effective on September 14, 2026.
Comments on the rule must be received by October 14, 2026.
ADDRESSES: Comments should be directed to:
OCC: Commenters are encouraged to submit comments through the
Federal eRulemaking Portal. Please use the title ``Expanded Examination
Cycle for Certain Small Insured Depository Institutions and U.S.
Branches and Agencies of Foreign Banks'' 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-2026-0761''
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. EST, or email
<a href="/cdn-cgi/l/email-protection#7e0c1b190b121f0a1711100d161b120e1a1b0d153e190d1f50191108"><span class="__cf_email__" data-cfemail="f88a9d9f8d94998c9197968b909d94889c9d8b93b89f8b99d69f978e">[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 1E-216, Washington, DC 20219.
<bullet> Hand Delivery/Courier: 400 7th Street SW, Suite 1E-216,
Washington, DC 20219.
Instructions: You must include ``OCC'' as the agency name and
Docket ID ``OCC-2026-0761'' 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-2026-0761''
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, 9 a.m.-5 p.m. EST, or email
<a href="/cdn-cgi/l/email-protection#ddafb8baa8b1bca9b4b2b3aeb5b8b1adb9b8aeb69dbaaebcf3bab2ab"><span class="__cf_email__" data-cfemail="80f2e5e7f5ece1f4e9efeef3e8e5ecf0e4e5f3ebc0e7f3e1aee7eff6">[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-1898 and
RIN 7100-AH28 by any of the following methods:
<bullet> Agency Website: <a href="https://www.federalreserve.gov/apps/proposals/">https://www.federalreserve.gov/apps/proposals/</a>. Follow the instructions for submitting comments, including
attachments. Preferred Method.
<bullet> Mail: Benjamin W. McDonough, Secretary, Board of Governors
of the Federal Reserve System, 20th Street and Constitution Avenue NW,
Washington, DC 20551.
<bullet> Hand Delivery/Courier: Same as mailing address.
<bullet> Other Means: <a href="/cdn-cgi/l/email-protection#522227303e3b31313d3f3f373c2621123420307c353d24"><span class="__cf_email__" data-cfemail="e9999c8b85808a8a8684848c879d9aa98f9b8bc78e869f">[email protected]</span></a>. You must include the
docket number in the subject line of the message.
Comments received are subject to public disclosure. In general,
comments received will be made available on the Board's website at
<a href="https://www.federalreserve.gov/apps/proposals/">https://www.federalreserve.gov/apps/proposals/</a> without change and will
not be modified to remove personal or business information including
confidential, contact, or other identifying information. Comments
should not include any information
[[Page 58010]]
such as confidential information that would not be appropriate for
public disclosure. Comments should identify the number for the specific
question(s) to which they respond. Public comments may also be viewed
electronically or in person in Room M-4365A, 2001 C St. NW, Washington,
DC 20551, between 9 a.m. and 5 p.m. during Federal business weekdays.
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 RIN 3064-AG33, by any of the
following methods:
<bullet> Agency Website: <a href="https://www.fdic.gov/federal-register-publications">https://www.fdic.gov/federal-register-publications</a>. Follow instructions for submitting comments on the FDIC's
website.
<bullet> Mail: Jennifer M. Jones, Deputy Executive Secretary,
Attention: Comments-RIN 3064-AG33, Federal Deposit Insurance
Corporation, 550 17th Street NW, Washington, DC 20429.
<bullet> Hand Delivered/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 a.m. and 5 p.m. ET.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#a5e6cac8c8c0cbd1d6e5e3e1ece68bc2cad3"><span class="__cf_email__" data-cfemail="0b486466666e657f784b4d4f4248256c647d">[email protected]</span></a>. Include RIN 3064-AG33 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/federal-register-publications">https://www.fdic.gov/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: Kimberly Folk Pratt, Acting Assistant Director, Daniel Amodeo,
Counsel, J. William Binkley, Counsel, Chief Counsel's Office, 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: Anthony Cain, Senior Adviser, (202) 725-7842, Alex Kobulsky,
Lead Financial Institution Policy Analyst, (202) 452-2031, Division of
Supervision and Regulation; or Jay Schwarz, Deputy Associate General
Counsel, (202) 452-2970, Julie Anthony, Senior Special Counsel, (202)
658-9400, David Cohen, Counsel, (202) 893-5662, Vivien Lee, Attorney,
(240) 814-3594, Daniel Parks, Attorney, (771) 210-7183, 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: Division of Risk Management Supervision--Suzanne Clair,
Associate Director, <a href="/cdn-cgi/l/email-protection#c39080afa2aab18385878a80eda4acb5"><span class="__cf_email__" data-cfemail="b6e5f5dad7dfc4f6f0f2fff598d1d9c0">[email protected]</span></a>; Brittany Audia, Chief,
<a href="/cdn-cgi/l/email-protection#9ad8dbeffef3fbdadcded3d9b4fdf5ec"><span class="__cf_email__" data-cfemail="75373400111c143533313c365b121a03">[email protected]</span></a>; Pete Martino, Senior Examination Specialist,
<a href="/cdn-cgi/l/email-protection#cb9b86aab9bfa2a5a48b8d8f8288e5aca4bd"><span class="__cf_email__" data-cfemail="72223f1300061b1c1d3234363b315c151d04">[email protected]</span></a>; Legal Division--Kimberly Yeh, Senior Attorney,
<a href="/cdn-cgi/l/email-protection#ce8597aba68e888a878de0a9a1b8"><span class="__cf_email__" data-cfemail="a7ecfec2cfe7e1e3eee489c0c8d1">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
Section 903 of the 21st Century ROAD to Housing Act became law on
July 11, 2026, and amended section 10(d) of the Federal Deposit
Insurance Act (FDI Act) \1\ to raise the asset thresholds from $3
billion to $6 billion to permit the Agencies to examine qualifying
insured depository institutions (IDIs) not less than once during each
18-month period instead of annually.\2\ Prior to the enactment of the
21st Century ROAD to Housing Act, only qualifying IDIs with under $3
billion in total assets were eligible for an 18-month on-site
examination cycle.\3\
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\1\ 12 U.S.C. 1820(d).
\2\ Public Law 119-101, 140 Stat. 846 (2026).
\3\ See section 210 of the Economic Growth, Regulatory Relief,
and Consumer Protection Act (Economic Growth Act), Public Law 115-
174, 132 Stat. 1296 (2018) (permitting the Agencies to examine
qualifying IDIs with under $3 billion in total assets not less than
once during each 18-month period). The Agencies published interim
final rules implementing the Economic Growth Act amendments in
August 2018, and final rules in December 2018. See 83 FR 43961 (Aug.
29, 2018) and 83 FR 67033 (Dec. 28, 2018), respectively.
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The Agencies are issuing an interim final rule to implement the
21st Century ROAD to Housing Act's amendments to section 10(d)(4) and
10(d)(10) of the FDI Act,\4\ which allow qualifying IDIs with under $6
billion in total assets to be eligible for the extended 18-month
examination schedule. In addition, the interim final rule makes
parallel changes to the Agencies' regulations governing the on-site
examination cycle for U.S. branches and agencies of foreign banks,
consistent with the IBA.\5\
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\4\ 12 U.S.C. 1820(d)(4) and 1820(d)(10).
\5\ 12 U.S.C. 3105(c)(1)(C). Additionally, certain changes would
also be responsive to comments received through the Economic Growth
and Regulatory Paperwork Reduction Act review. See Public Law 104-
208, Div. A, Title II, section 2222, 110 Stat. 3009-414 (1996)
(codified at 12 U.S.C. 3311). See also 89 FR 99751 (Dec. 11, 2024).
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Section 10(d)(1) of the FDI Act generally requires the appropriate
Federal banking agency for an IDI to conduct a full-scope, on-site
examination of the IDI at least once during each 12-month period. With
the enactment of section 903 of the 21st Century ROAD to Housing Act,
section 10(d)(4) of the FDI Act now authorizes the appropriate Federal
banking agency to extend the on-site examination cycle for an IDI to at
least once during an 18-month period if the IDI (1) has total assets of
less than $6 billion; (2) is well capitalized; \6\ (3) was found, at
its most recent examination, to be well managed and to have a composite
condition of ``outstanding'' or, in the case of an IDI with total
assets of not more than $200 million, ``outstanding'' or ``good''; \7\
(4) is not subject to a formal enforcement proceeding or order by the
FDIC or its appropriate Federal banking agency; and (5) has not
undergone a change in control during the previous 12-month period in
which a full-scope, on-site examination otherwise would have been
required. The 21st Century ROAD to Housing Act also revised the total
asset threshold under section 10(d)(10) of the FDI Act to provide each
appropriate Federal banking agency discretionary authority to extend
eligibility for an 18-month examination cycle, by regulation, to
qualifying IDIs with an ``outstanding''
[[Page 58011]]
or ``good'' composite condition and total assets of an amount not to
exceed $6 billion (increased from $3 billion), if the agency determines
that this amount would be consistent with the principles of safety and
soundness for IDIs.\8\
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\6\ Well capitalized is defined by section 38 of the FDI Act,
codified at 12 U.S.C. 1831o, to mean that an IDI significantly
exceeds the required minimum level for each relevant capital
measure. As required by section 38, the Agencies have defined
capital levels that IDIs must meet in order to be well capitalized
under the prompt corrective action framework. See 12 CFR 6.4 (OCC);
12 CFR 208.43 (Board); 12 CFR 324.403 (FDIC).
\7\ IDIs are evaluated under the Uniform Financial Institutions
Rating System (commonly referred to as ``CAMELS''). CAMELS is an
acronym that is drawn from the first letters of the individual
components of the rating system: Capital adequacy, Asset quality,
Management, Earnings, Liquidity, and Sensitivity to market risk.
CAMELS ratings of ``1'' and ``2'' correspond with ratings of
``outstanding'' and ``good.'' In addition to having a CAMELS
composite rating of ``1'' or ``2,'' an IDI is considered to be
``well managed'' for the purposes of section 10(d) of the FDI Act
only if the IDI also received a rating of ``1'' or ``2'' for the
management component of the CAMELS rating at its most recent
examination. See 72 FR 54347 (Sept. 25, 2007).
\8\ Additionally, the Board and the FDIC, as the appropriate
Federal banking agencies for State-chartered insured banks and
savings associations, are permitted to conduct on-site examinations
of such IDIs on alternating 12-month or 18-month periods with an
IDI's State supervisor, if the Board or FDIC, as appropriate,
determines that the alternating examination conducted by the State
carries out the purposes of section 10(d) of the FDI Act. 12 U.S.C.
1820(d)(3).
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In addition, section 7(c)(1)(C) of the IBA provides that a Federal
or a State branch or agency of a foreign bank shall be subject to on-
site examination by its appropriate Federal banking agency or State
bank supervisor as frequently as a national or State bank would be
subject to such an examination by the appropriate Federal banking
agency.\9\
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\9\ 12 U.S.C. 3105(c)(1)(C).
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II. Description of the Interim Final Rule
The Agencies are adopting the interim final rule to implement the
21st Century ROAD to Housing Act's amendments to sections 10(d)(4) and
10(d)(10) of the FDI Act. The interim final rule implements section
10(d)(4) of the FDI Act, as revised by the 21st Century ROAD to Housing
Act, to increase, from $3 billion to $6 billion, the total asset
threshold under which the Agencies may apply an 18-month on-site
examination cycle for qualifying IDIs that have an ``outstanding''
composite condition.\10\ The interim final rule also reflects the
Agencies' exercise of their discretionary authority under section
10(d)(10) of the FDI Act to extend eligibility for an 18-month
examination cycle to qualifying IDIs with an ``outstanding'' or
``good'' composite condition with total assets under $6 billion, rather
than total assets under $3 billion.\11\
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\10\ 12 U.S.C. 1820(d)(4). The OCC's regulation implementing
section 10(d) of the FDI Act, 12 CFR 4.6, applies to every national
bank and Federal savings association, not solely to IDIs.
\11\ 12 U.S.C. 1820(d)(10). Section 10(d)(10) of the FDI Act
permits the Agencies to increase the dollar threshold for the 18-
month exam cycle for institutions with a composite condition of
``good'' from $200 million to an amount not to exceed $6 billion.
The Agencies previously increased this amount to less than $3
billion. See 83 FR 67033 (Dec. 28, 2018).
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The Agencies have determined that increasing the maximum total
asset amount limitation for IDIs with a ``good'' composite condition to
qualify for the 18-month examination cycle to less than $6 billion in
total assets is consistent with principles of safety and soundness for
IDIs. While extending the examination cycle has the potential to delay
an agency's ability to detect deterioration in an IDI's financial
condition, the Agencies do not expect that extending the examination
cycle by six months for these small, well-rated IDIs with relatively
simple risk profiles and no outstanding enforcement action or order
would appreciably increase their risk of financial deterioration or
failure. In addition, the Agencies will continue their off-site
monitoring activities designed to identify new or increasing risks,
which often include various Call Report-based analyses. This interim
final rule also would not change the Agencies' existing authorities to
examine IDIs that qualify for the 18-month examination cycle more
frequently as necessary or appropriate, including those IDIs with a
``good'' composite rating.\12\ The Agencies also note that, in order to
qualify for an 18-month examination cycle, these IDIs with total assets
under $6 billion must meet the other capital, managerial, and
supervisory criteria set forth in section 10(d)(4) of the FDI Act and
the Agencies' implementing regulations.\13\
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\12\ 12 CFR 4.6(c), 4.7(c) (OCC); 12 CFR 208.64(c), 211.26(c)(3)
(Board); 12 CFR 337.12(c), 347.211(c) (FDIC).
\13\ 12 U.S.C. 1820(d)(4).
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In accordance with section 7(c)(1)(C) of the IBA,\14\ the Agencies
are also making conforming changes to their regulations to raise, from
$3 billion to $6 billion, the total asset threshold for the U.S.
branches and agencies of foreign banks that would qualify for an 18-
month examination cycle.
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\14\ 12 U.S.C. 3105(c)(1)(C).
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The Agencies will continue to monitor IDIs and U.S. branches and
agencies of foreign banks (collectively, financial institutions) in
this asset range and the impact of the extended examination cycle.
III. Economic Analysis
The Agencies estimate that the interim final rule will increase the
number of banks and savings associations that may be eligible for an
extended 18-month examination cycle by approximately 188 (95 of which
are supervised by the FDIC, 50 by the OCC, and 43 by the Board),
bringing the total number of institutions that may qualify for an
extended 18-month cycle to 4,016. This estimate includes the
approximately 19 additional U.S. branches and agencies of foreign banks
that may be eligible (1 of which is supervised by the FDIC, 10 by the
OCC, and 8 by the Board).\15\
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\15\ The estimates are based off active institutions as of July
11, 2026 for the Board and the FDIC and as of July 30, 2026 for the
OCC, as well as March 31, 2026 data from the Call Report and FFIEC
002, ``Report of Assets and Liabilities of U.S. Branches and
Agencies of Foreign Banks.''
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Financial institutions with total assets of $3 billion or more but
less than $6 billion that are eligible for the 18-month examination
cycle will realize costs savings and can utilize those costs savings in
various ways. A potential reduction in examination activity is likely
to enable those financial institutions' existing staff to allocate
resources to other activities that could improve business-related
outcomes, such as serving customers. These potential beneficial effects
will vary from institution to institution depending upon the
composition of staff supporting examinations, an institution's business
activities, and the decisions of senior management. Therefore, they are
difficult to accurately estimate.
As previously discussed, the Agencies believe that extending the
examination cycle from 12 months to 18 months for these small financial
institutions with relatively simple risk profiles should not
appreciably increase their risk of financial deterioration or failure.
The Agencies acknowledge that extending the examination cycles creates
a longer window during which emerging problems could develop before
being detected through an on-site examination. That said, the Agencies
believe that the strict eligibility requirements as well as the
Agencies' off-site monitoring activities should serve to minimize any
such risks and associated costs.
Finally, qualifying financial institutions may incur modest one-
time implementation costs such as those attributable to updating their
compliance calendars, policies, and examination preparation schedules
to reflect the new eligibility criteria and extended cycles.
Nonetheless, such implementation costs are expected to be marginal and
far outweighed by the ongoing cost savings from the less-frequent
examination cycles for qualifying financial institutions.
IV. Regulatory Analysis
A. Administrative Procedure Act
The Agencies are issuing the interim final rule without prior
notice, the opportunity for prior public comment, or the delayed
effective date ordinarily prescribed by the Administrative Procedure
Act (APA).\16\ Pursuant to section 553(b)(B) of the APA, general notice
and the opportunity for public comment are not required with respect to
a rulemaking when an ``agency for good cause finds (and incorporates
the
[[Page 58012]]
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.'' \17\ The interim
final rule implements the provisions of section 903 of the 21st Century
ROAD to Housing Act that went into effect on July 11, 2026. In
particular, the interim final rule adopts the statutory increase in the
total asset threshold, from less than $3 billion to less than $6
billion, for IDIs with an ``outstanding'' composite condition, and also
makes available, pursuant to statutory authority, the 18-month
examination cycle for qualifying IDIs with an ``outstanding'' or
``good'' composite condition and total assets of less than $6
billion.\18\ The interim final rule also makes conforming amendments to
the Agencies' regulations governing the on-site examination cycle for
U.S. branches and agencies of foreign banks, as required by statute.
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\16\ See 5 U.S.C. 553.
\17\ 5 U.S.C. 553(b)(B).
\18\ Under 12 U.S.C. 1820(d)(4)(C)(ii), the Agencies may examine
on an 18-month cycle an IDI that meets the other factors provided
under 12 U.S.C. 1820(d)(4) if the IDI has total assets of
$200,000,000 or less and provided its composite condition is
``outstanding'' or ``good.'' Under 12 U.S.C. 1820(d)(10), as
modified by the 21st Century ROAD to Housing Act, the Agencies are
authorized to increase the $200,000,000 total asset threshold to
$6,000,000,000. The Agencies are doing so in this interim final
rule.
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The Agencies believe that the public interest is best served by
aligning the Agencies' regulations with the 21st Century ROAD to
Housing Act's amendments and implementing the increased total asset
threshold as soon as possible. Immediate implementation will clarify
requirements and reduce regulatory burden on certain small, well
capitalized, and well managed financial institutions while also
allowing the Agencies to better focus their supervisory resources on
those financial institutions that may present capital, managerial, or
other issues of supervisory concern. Because financial institutions and
the Agencies must plan and prepare for examinations in advance, the
Agencies believe that issuing the interim final rule would provide the
certainty necessary for qualifying financial institutions and the
Agencies to begin reorienting their planning and preparation, including
scheduling examinations according to the new examination cycle period.
In addition, the Agencies believe that providing a notice and comment
period prior to issuance of the interim final rule is unnecessary
because the Agencies do not expect public objection to the regulations
being promulgated as they implement the relief provided for in the 21st
Century ROAD to Housing Act.\19\ Moreover, the interim final rule does
not alter the Agencies' current authority to conduct on-site
examinations of financial institutions more frequently than once every
18 months if deemed necessary. For these reasons, the Agencies find
there is good cause consistent with the public interest to issue the
rule without advance notice and comment.\20\
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\19\ See, e.g., 83 FR 67033 (Dec. 28, 2018) and 81 FR 10063
(Feb. 29, 2016).
\20\ 5 U.S.C. 553(b)(B).
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The APA also requires a 30-day delayed effective date, except for
(1) substantive rules which grant or recognize an exemption or relieve
a restriction; (2) interpretative rules and statements of policy; or
(3) as otherwise provided by the agency for good cause.\21\ The
Agencies conclude that, because the rule recognizes an exemption, the
interim final rule is exempt from the APA's delayed effective date
requirement.\22\ Additionally, the Agencies find good cause to publish
the interim final rule with an immediate effective date for the same
reasons set forth above under the discussion of section 553(b)(B) of
the APA.\23\
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\21\ 5 U.S.C. 553(d).
\22\ 5 U.S.C. 553(d)(1).
\23\ 5 U.S.C. 553(d)(3).
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While the Agencies believe there is good cause to issue the rule
without advance notice and comment and with an immediate effective
date, the Agencies are interested in the views of the public and
request comment on all aspects of the interim final rule.
B. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) states that no agency may
conduct or sponsor, nor is the respondent required to respond to, an
information collection unless it displays a currently valid Office of
Management and Budget (OMB) control number.\24\ The Agencies have
reviewed the interim final rule and determined that it would not
introduce any new collection of information or revise any existing
collection of information pursuant to the PRA. Therefore, no submission
will be made to OMB for review.
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\24\ 44 U.S.C. 3501 et seq.
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C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) \25\ requires an agency to
consider whether the rules it proposes will have a significant economic
impact on a substantial number of small entities.\26\ The RFA applies
only to rules for which an agency publishes a general notice of
proposed rulemaking pursuant to 5 U.S.C. 553(b) or any other law. As
discussed previously, consistent with section 553(b)(B) of the APA, the
Agencies have determined for good cause that general notice and
opportunity for public comment is unnecessary, and therefore the
Agencies are not issuing a notice of proposed rulemaking. Accordingly,
the Agencies have concluded that the RFA's requirements relating to
initial and final regulatory flexibility analyses do not apply.
Further, the Agencies note that no small entities, as defined by the
Small Business Administration's rules implementing the RFA, will be
affected by the interim final rule's increased asset thresholds.
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\25\ 5 U.S.C. 601 et seq.
\26\ Under regulations issued by the Small Business
Administration, a small entity includes a depository institution,
bank holding company, or savings and loan holding company with total
assets of $850 million or less and trust companies with total assets
of $47.0 million or less.
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D. Plain Language
Section 722 of the Gramm-Leach Bliley Act \27\ requires the Federal
banking agencies to use plain language in all proposed and final rules
published after January 1, 2000. The Agencies invite comment on the use
of plain language and have sought to present the interim final rule in
a simple and straightforward manner. For example:
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\27\ 12 U.S.C. 4809.
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<bullet> Have the Agencies organized the material to suit your
needs? If not, how could they present the rule more clearly?
<bullet> Are the requirements in the rule clearly stated? If not,
how could the rule be more clearly stated?
<bullet> Do the regulations contain technical language or jargon
that is not clear? If so, which language requires clarification?
<bullet> Would a different format (grouping and order of sections,
use of headings, paragraphing) make the regulation easier to
understand? If so, what changes would achieve that?
<bullet> Would more, but shorter, sections be better? If so, which
sections should be changed?
<bullet> What other changes can the Agencies incorporate to make
the rule easier to understand?
E. OCC Unfunded Mandates Reform Act of 1995
As a general matter, the Unfunded Mandates Reform Act of 1995
(UMRA) \28\ requires the preparation of a budgetary impact statement
before promulgating a rule that includes a
[[Page 58013]]
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 in any one year ($193 million as adjusted annually for
inflation). However, the UMRA does not apply to final rules for which a
general notice of proposed rulemaking was not published.\29\ As
discussed above, consistent with section 553(b)(B) of the APA, the
Agencies have determined for good cause that general notice and
opportunity for public comment is unnecessary and therefore the
Agencies are not issuing a notice of proposed rulemaking. Moreover,
because this interim final rule imposes no new mandates, it will not
require additional expenditure of $193 million or more annually by any
State, local, or tribal governments, in the aggregate, or by the
private sector. Accordingly, for these reasons, the OCC has not
prepared a budgetary impact statement under the UMRA.
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\28\ 2 U.S.C. 1531 et seq.
\29\ See 2 U.S.C. 1532(a).
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F. Riegle Community Development and Regulatory Improvement Act of 1994
Pursuant to section 302(a) of the Riegle Community Development and
Regulatory Improvement Act (RCDRIA),\30\ in determining the effective
date and administrative compliance requirements for new regulations
that impose additional reporting, disclosure, or other requirements on
IDIs, each Federal banking agency must consider, consistent with
principles of safety and soundness and the public interest, any
administrative burdens that such regulations would place on depository
institutions, including small depository institutions, and customers of
depository institutions, as well as the benefits of such regulations.
In addition, section 302(b) of RCDRIA requires new regulations and
amendments to regulations that impose additional reporting,
disclosures, or other new requirements on IDIs generally to take effect
on the first day of a calendar quarter that begins on or after the date
on which the regulations are published in final form, with certain
exceptions, including for good cause.\31\ Because the interim final
rule expands eligibility for an 18-month, rather than 12-month, on-site
examination schedule and is burden-reducing in nature, the interim
final rule does not impose additional reporting, disclosure, or other
requirements on IDIs, and section 302 of the RCDRIA therefore does not
apply. Nevertheless, the Agencies have considered the administrative
burdens that such regulations would place on depository institutions
and the benefits of such regulations in determining the effective date
and compliance requirements. In addition, for the same reasons set
forth previously under the discussion of section 553(b)(B) of the APA,
the Agencies find good cause under section 302 of RCDRIA to publish the
interim final rule with an immediate effective date.
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\30\ 12 U.S.C. 4802(a).
\31\ 12 U.S.C. 4802(b).
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G. Executive Orders 12866, 13563, and 14192
Executive Order 12866 (Regulatory Planning and Review) \32\ and
Executive Order 13563 (Improving Regulation and Regulatory Review) \33\
direct Federal agencies to assess the costs and benefits of available
regulatory alternatives and, if regulation is necessary, to select
regulatory approaches that maximize net benefits. The interim final
rule was drafted and reviewed in accordance with Executive Order 12866
and Executive Order 13563. Within OMB, the Office of Information and
Regulatory Affairs (OIRA) has determined that this rulemaking is not a
``significant regulatory action'' under section 3(f) of Executive Order
12866, as amended, and therefore it was not subject to an E.O. 12866
review. This joint interim final rule is also not an E.O. 14192
regulatory action.
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\32\ E.O. 12866, 58 FR 51735 (Oct. 4, 1993).
\33\ E.O. 13563, 76 FR 3821 (Jan. 21, 2011).
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H. Congressional Review Act
For purposes of the Congressional Review Act, OMB determines
whether a final rule constitutes a ``major'' rule.\34\ If a rule is
deemed a ``major rule'' by OMB, the Congressional Review Act generally
provides that the rule may not take effect until at least 60 days
following its publication.\35\
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\34\ 5 U.S.C. 801 et seq.
\35\ 5 U.S.C. 801(a)(3).
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The Congressional Review Act defines a ``major rule'' as any rule
that the Administrator of the Office of Information and Regulatory
Affairs of the OMB finds has resulted in or is likely to result in--(A)
an annual effect on the economy of $100,000,000 or more; (B) a major
increase in costs or prices for consumers; individual industries;
Federal, State, or local government agencies; or geographic regions; or
(C) significant adverse effects on competition, employment, investment,
productivity, innovation, or on the ability of United States-based
enterprises to compete with foreign-based enterprises in domestic and
export markets.\36\ OMB has determined that this interim final rule is
not a major rule for purposes of the Congressional Review Act. As
required, the Agencies will submit this final rule and other
appropriate reports to Congress and the Government Accountability
Office for review.
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\36\ 5 U.S.C. 804(2).
---------------------------------------------------------------------------
List of Subjects
12 CFR Part 4
Administrative practice and procedure, Freedom of information,
Individuals with disabilities, Minority businesses, Organization and
functions (Government agencies), Reporting and recordkeeping
requirements, Women.
12 CFR Part 208
Accounting, Agriculture, Banks, banking, Confidential business
information, Consumer protection, Crime, Currency, Federal Reserve
System, Flood insurance, Insurance, Investments, Mortgages, Reporting
and recordkeeping requirements, Securities.
12 CFR Part 211
Exports, Federal Reserve System, Foreign banking, Holding
companies, Investments, Reporting and recordkeeping requirements.
12 CFR Part 337
Banks, banking, Reporting and recordkeeping requirements, Savings
associations, Securities.
12 CFR Part 347
Authority delegations (Government agencies), Bank deposit
insurance, Banks, banking, Credit, Foreign banking, Investments,
Reporting and recordkeeping requirements, U.S. investments abroad.
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, the Office of the
Comptroller of the Currency proposes to amend part 4 of chapter I of
title 12 of the Code of Federal Regulations as follows:
[[Page 58014]]
PART 4--ORGANIZATION AND FUNCTIONS, AVAILABILITY AND RELEASE OF
INFORMATION, CONTRACTING OUTREACH PROGRAM, POST-EMPLOYMENT
RESTRICTIONS FOR SENIOR EXAMINERS
0
1. The authority citation for part 4 continues to read as follows:
Authority: 5 U.S.C. 301, 552; 12 U.S.C. 1, 93a, 161, 481, 482,
484(a), 1442, 1462a, 1463, 1464, 1817(a), 1818, 1820, 1821, 1831m,
1831p-1, 1831o, 1833e, 1867, 1951 et seq., 2601 et seq., 2801 et
seq., 2901 et seq., 3101 et seq., 3401 et seq., 5321, 5412, 5414; 15
U.S.C. 77uu(b), 78q(c)(3); 18 U.S.C. 641, 1905, 1906; 29 U.S.C.
1204; 31 U.S.C. 5318(g)(2), 9701; 42 U.S.C. 3601; 44 U.S.C. 3506,
3510; E.O. 12600 (3 CFR, 1987 Comp., p. 235).
0
2. Section 4.6 is amended by revising paragraph (b)(1) to read as
follows:
Sec. 4.6 Frequency of examination of national banks and Federal
savings associations.
* * * * *
(b) * * *
(1) The bank or Federal savings association has total assets of
less than $6 billion;
* * * * *
0
3. Section 4.7 is amended by revising paragraph (b)(1)(i) to read as
follows:
Sec. 4.7 Frequency of examination of Federal agencies and branches.
* * * * *
(b) * * *
(1) * * *
(i) Has total assets of less than $6 billion;
* * * * *
FEDERAL RESERVE SYSTEM
12 CFR Chapter II
Authority and Issuance
For the reasons set forth in the preamble, the Board amends parts
208 and 211 of chapter II of title 12 of the Code of Federal
Regulations as follows:
PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL
RESERVE SYSTEM (REGULATION H)
0
4. The authority citation for part 208 continues to read as follows:
Authority: 12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321-338a,
371d, 461, 481-486, 601, 611, 1814, 1816, 1817(a)(3), 1817(a)(12),
1818, 1820(d)(9), 1833(j), 1828(o), 1831, 1831o, 1831p-1, 1831r-1,
1831w, 1831x, 1835a, 1882, 2901-2907, 3105, 3310, 3331-3351, 3905-
3909, 5371, and 5371 note; 15 U.S.C. 78b, 78I(b), 78l(i), 780-
4(c)(5), 78q, 78q-1, 78w, 1681s, 1681w, 6801 and 6805, 31 U.S.C.
5318; 42 U.S.C. 4012a, 4104a, 4104b, 4106, and 4128.
0
5. Amend Sec. 208.64 by revising paragraph (b)(1) to read as follows:
Sec. 208.64 Frequency of examination.
* * * * *
(b) * * *
(1) The bank has total assets of less than $6 billion;
* * * * *
PART 211--INTERNATIONAL BANKING OPERATIONS (REGULATION K)
0
6. The authority citation for part 211 continues to read as follows:
Authority: 12 U.S.C. 221 et seq., 1818, 1835a, 1841 et seq.,
3101 et seq., 3901 et seq., and 5101 et seq.; 15 U.S.C. 1681s,
1681w, 6801 and 6805.
0
7. Amend Sec. 211.26 by revising paragraph (c)(2)(i)(A) to read as
follows:
Sec. 211.26 Examinations of offices and affiliates of foreign banks.
* * * * *
(c) * * *
(2) * * *
(i) * * *
(A) Has total assets of less than $6 billion;
* * * * *
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Chapter III
Authority and Issuance
For the reasons stated in the preamble, the Board of Directors of
the FDIC amends parts 337 and 347 of chapter III of title 12 of the
Code of Federal Regulations as follows:
PART 337--UNSAFE AND UNSOUND BANKING PRACTICES
0
8. The authority citation for part 337 continues to read as follows:
Authority: 12 U.S.C. 375a(4), 375b, 1463, 1464, 1468, 1816,
1818(a), 1818(b), 1819, 1820(d), 1821(f), 1828(j)(2), 1831, 1831f,
1831g, 5412.
0
9. Amend Sec. 337.12 by revising paragraph (b)(l) to read as follows:
Sec. 337.12 Frequency of examination.
* * * * *
(b) * * *
(1) The institution has total assets of less than $6 billion;
* * * * *
PART 347--INTERNATIONAL BANKING
0
10. The authority citation for part 347 continues to read as follows:
Authority: 12 U.S.C. 1813, 1815, 1817, 1819, 1820, 1828, 3103,
3104, 3105, 3108, 3109; Pub L. No. 111-203, section 939A, 124 Stat.
1376, 1887 (July 21, 2010) (codified 15 U.S.C. 78o-7 note).
0
11. Amend Sec. 347.211 by revising paragraph (b)(l)(i) to read as
follows:
Sec. 347.211 Examination of branches of foreign banks.
* * * * *
(b) * * *
(1) * * *
(i) Has total assets of less than $6 billion;
* * * * *
Jonathan V. Gould,
Comptroller of the Currency.
By order of the Board of Governors of the Federal Reserve
System.
Benjamin W. McDonough,
Secretary of the Board.
Federal Deposit Insurance Corporation.
By order of the Board of Directors,
Dated at Washington, DC, on August 27, 2026.
Jennifer M. Jones,
Deputy Executive Secretary.
[FR Doc. 2026-18766 Filed 9-11-26; 8:45 am]
BILLING CODE 4810-33-P-6210-01-P-6714-01-P
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