FDIC Federal Register Citations

[Federal Register: December 21, 2007 (Volume 72, Number 245)]
[Rules and Regulations]              
[Page 72571-72574]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21de07-3]                        

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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 25

[Docket ID OCC-2007-0021]
RIN 1557-AD05

FEDERAL RESERVE SYSTEM

12 CFR Part 228

[Regulation BB; Docket No. R-1302]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 345

RIN 3064-AD24

DEPARTMENT OF TREASURY

Office of Thrift Supervision

12 CFR Part 563e

[Docket ID OTS-2007-0024]
RIN 1550-AC18

 
Community Reinvestment Act Regulations

AGENCIES: Office of the Comptroller of the Currency, Treasury (OCC);
Board of Governors of the Federal Reserve System (Board); Federal
Deposit Insurance Corporation (FDIC); Office of Thrift Supervision
(OTS).

ACTION: Joint final rule; technical correction.

-----------------------------------------------------------------------

SUMMARY: The OCC, the Board, the FDIC, and the OTS (collectively, the
``agencies'') are amending their Community Reinvestment Act (CRA)
regulations to adjust the asset-size thresholds used to define ``small
bank'' or ``small savings association'' and ``intermediate small bank''
or ``intermediate small savings association.'' As required by the CRA
regulations, the adjustment to the threshold amount is based on the
annual percentage change in the Consumer Price Index. The agencies are
also correcting a paragraph heading that is inaccurate as a result of
annual revisions to the small institution threshold.

DATE: Effective January 1, 2008.

FOR FURTHER INFORMATION CONTACT:
    OCC: Margaret Hesse, Special Counsel, Community and Consumer Law
Division, (202) 874-5750; or Karen Tucker, National Bank Examiner,
Compliance Policy Division, (202) 874-4428, Office of the Comptroller
of the Currency, 250 E Street, SW., Washington, DC 20219.
    Board: Anjanette M. Kichline, Senior Supervisory Consumer Financial
Services Analyst, (202) 785-6054; or Brett Lattin, Attorney, (202) 452-
3667, Division of Consumer and Community Affairs, Board of Governors of
the Federal Reserve System, 20th Street and Constitution Avenue, NW.,
Washington, DC 20551.
    FDIC: Deirdre Foley, Senior Policy Analyst, Compliance Policy
Section, (202) 898-6612, and Faye Murphy, Review Examiner, Compliance
Examination Support, (202) 898-6613, Division of Supervision and
Consumer Protection; or Susan van den Toorn, Counsel, Legal Division,
(202) 898-8707, Federal Deposit Insurance Corporation, 550 17th Street,
NW., Washington, DC 20429.
    OTS: Celeste Anderson, Senior Project Manager, Compliance and
Consumer Protection, (202) 906-7990; or Richard Bennett, Senior
Compliance Counsel, Regulations and Legislation Division, (202) 906-
7409, Office of Thrift Supervision, 1700 G Street, NW., Washington, DC
20552.

SUPPLEMENTARY INFORMATION:

Background and Description of the Joint Final Rule

    The agencies' CRA regulations establish CRA performance standards
for small and intermediate small banks and savings associations. The
regulations define small and intermediate small institutions by
reference to asset-size criteria expressed in dollar amounts, and they
further require the agencies to publish annual adjustments to these
dollar figures based

[[Page 72572]]

on the year-to-year change in the average of the Consumer Price Index
for Urban Wage Earners and Clerical Workers (CPIW), not seasonally
adjusted, for each twelve-month period ending in November, with
rounding to the nearest million. 12 CFR 25.12(u)(2), 228.12(u)(2),
345.12(u)(2), and 563e.12(u)(2).
    The threshold for small banks was revised most recently for the
OCC, the Board, and the FDIC effective January 1, 2007 (71 FR 78335
(Dec. 29, 2006)). These agencies' CRA regulations, as revised on
December 29, 2006, provide that banks that, as of December 31 of either
of the prior two calendar years, had assets of less than $1.033 billion
are ``small banks.'' Small banks with assets of at least $258 million
as of December 31 of both of the prior two calendar years and less than
$1.033 billion as of December 31 of either of the prior two calendar
years are ``intermediate small banks.'' 12 CFR 25.12(u)(1),
228.12(u)(1), 345.12(u)(1). The threshold for small savings
associations was revised in the same way and the same threshold for
intermediate small savings associations was established by OTS
effective July 1, 2007 (72 FR 13435 (Mar. 22, 2007). 12 CFR
563e.12(u)(1). This joint final rule further revises these thresholds.
    During the period ending November 2007, the CPIW increased by 2.7
percent. As a result, the agencies are revising 12 CFR 25.12(u)(1),
228.12(u)(1), 345.12(u)(1), and 563e.12(u)(1) to make this annual
adjustment. Beginning January 1, 2008, banks and savings associations
that, as of December 31 of either of the prior two calendar years, had
assets of less than $1.061 billion are ``small banks'' or ``small
savings associations.'' Small banks or small savings associations with
assets of at least $265 million as of December 31 of both of the prior
two calendar years and less than $1.061 billion as of December 31 of
either of the prior two calendar years are ``intermediate small banks''
or ``intermediate small savings associations.'' The agencies also
publish current and historical asset-size thresholds on the website of
the Federal Financial Institutions Examination Council at http://www.ffiec.gov/cra/
.

    The agencies also are amending their CRA regulations to make a
technical correction to revise a paragraph heading that is inaccurate
as a result of annual small institution threshold adjustments. The
technical correction revises the paragraph headings found at 12 CFR
25.26(a)(1), 228.26(a)(1), and 345.26(a)(1) (``Small banks with assets
of less than $250 million'') and 12 CFR 563e.26(a)(1) (``Small savings
associations with assets of less than $250 million''). As a result of
the agencies' annual adjustments to the dollar amount threshold for
small institutions, the threshold of $250 million described in the
paragraph heading is inaccurate. The agencies are revising the headings
so that they do not reference the dollar amount of the small bank or
small savings association asset threshold.

Administrative Procedure Act and Effective Date

    Under 5 U.S.C. 553(b)(B) of the Administrative Procedure Act (APA),
an agency may, for good cause, find (and incorporate the finding and a
brief statement of reasons therefore in the rules issued) that notice
and public procedure thereon are impracticable, unnecessary, or
contrary to the public interest.
    The amendments to the regulations to adjust the asset-size
thresholds for small and intermediate small banks and savings
associations result from the application of a formula established by a
provision in the CRA regulations that the agencies previously published
for comment. See 70 FR 12148 (Mar. 11, 2005), 70 FR 44256 (Aug. 2,
2005), 71 FR 67826 (Nov. 24, 2006), and 72 FR 13429 (Mar. 22, 2007).
Sections 25.12(u)(1), 228.12(u)(1), 345.12(u)(1), and 563e.12(u)(1) are
amended by adjusting the asset threshold as provided for in Sec. Sec. 
25.12(u)(2), 228.12(u)(2), 345.12(u)(2), and 563e.12(u)(2).
    Accordingly, since the agencies' rules provide no discretion as to
the computation or timing of the revisions to the asset-size criteria,
the agencies have determined that publishing a notice of proposed
rulemaking and providing opportunity for public comment are
unnecessary.
    With regard to the revision amending the paragraph heading, as a
result of the annual adjustment required by the regulations, the
heading describing ``small banks'' or ``small savings associations'' as
those with assets of less than $250 million is inaccurate. The revision
merely amends the heading to correct this inaccuracy and prevent
further inaccuracies when annual adjustments are made in the future.
For this reason, the agencies, for good cause, find that the notice and
comment procedures prescribed by the APA are unnecessary because the
joint final rule is making a technical correction without substantive
change to the provisions of parts 25, 228, 345, and 563e.
    This joint final rule takes effect January 1, 2008. Under 5 U.S.C.
553(d)(3) of the APA, the required publication or service of a
substantive rule shall be made not less than 30 days before its
effective date, except, among other things, as provided by the agency
for good cause found and published with the rule. The agencies find
that there is good cause for shortened notice because their current
rules already provide notice that the small and intermediate asset-size
thresholds will be adjusted as of December 31 based on twelve-month
data as of the end of November each year. Moreover, the revisions to
the headings in the agencies' rules are minor, nonsubstantive, and
technical.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) does not apply to a rulemaking
where a general notice of proposed rulemaking is not required. 5 U.S.C.
603 and 604. As noted previously, the agencies have determined that it
is unnecessary to publish a notice of proposed rulemaking for this
joint final rule. Accordingly, the RFA's requirements relating to an
initial and final regulatory flexibility analysis do not apply.

Paperwork Reduction Act of 1995

    There are no collection of information requirements in this joint
final rule.

Executive Order 12866

    The OCC and OTS have each determined that its portion of this joint
final rule is not a significant regulatory action as defined in
Executive Order 12866.

Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C.
1532 (Unfunded Mandates Act), requires that an agency must prepare a
budgetary impact statement before promulgating any rule likely to
result in 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 in any one year. If a budgetary
impact statement is required, section 205 of the Unfunded Mandates Act
also requires an agency to identify and consider a reasonable number of
regulatory alternatives before promulgating a rule. The OCC and OTS
have each determined that its portion of this joint final rule will not
result in expenditures by State, local, and tribal governments, or by
the private sector, of $100 million or more in any one year.
Accordingly, this joint final rule is not subject to section 202 of the
Unfunded Mandates Act.

[[Page 72573]]

Executive Order 13132

    The OCC and OTS have each determined that its portion of this joint
final rule does not have any Federalism implications as required by
Executive Order 13132.

List of Subjects

12 CFR Part 25

    Community development, Credit, Investments, National banks,
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 563e

    Community development, Credit, Investments, Reporting and
recordkeeping requirements, Savings associations.

Department of the Treasury

Office of the Comptroller of the Currency

12 CFR Chapter I

0
For the reasons discussed in the joint preamble, 12 CFR part 25 is
amended as follows:

PART 25--COMMUNITY REINVESTMENT ACT AND INTERSTATE DEPOSIT
PRODUCTION REGULATIONS

0
1. 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, 1814, 1816, 1828(c), 1835a, 2901 through 2907, and 3101
through 3111.


0
2. Revise Sec.  25.12(u)(1) to read as follows:


Sec.  25.12  Definitions.

* * * * *
    (u) Small bank--(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 $1.061 billion. Intermediate small bank means a small bank
with assets of at least $265 million as of December 31 of both of the
prior two calendar years and less than $1.061 billion as of December 31
of either of the prior two calendar years.
* * * * *

0
3. Revise the paragraph heading to Sec.  25.26(a)(1) to read as
follows:


Sec.  25.26  Small bank performance standards.

    (a) Performance criteria--(1) Small banks that are not intermediate
small banks. * * *
* * * * *

Federal Reserve System

12 CFR Chapter II

0
For the reasons set forth in the joint preamble, the Board of Governors
of the Federal Reserve System amends part 228 of chapter II of title 12
of the Code of Federal Regulations as follows:

PART 228--COMMUNITY REINVESTMENT (REGULATION BB)

0
1. The authority citation for part 228 continues to read as follows:

    Authority: 12 U.S.C. 321, 325, 1828(c), 1842, 1843, 1844, and
2901 et seq.


0
2. Revise Sec.  228.12(u)(1) to read as follows:


Sec.  228.12  Definitions.

* * * * *
    (u) Small bank--(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 $1.061 billion. Intermediate small bank means a small bank
with assets of at least $265 million as of December 31 of both of the
prior two calendar years and less than $1.061 billion as of December 31
of either of the prior two calendar years.
* * * * *

0
3. Revise the paragraph heading to Sec.  228.26(a)(1) to read as
follows:


Sec.  228.26  Small bank performance standards.

    (a) Performance criteria--(1) Small banks that are not intermediate
small banks. * * *
* * * * *

Federal Deposit Insurance Corporation

12 CFR Chapter III

Authority and Issuance

0
For the reasons set forth in the joint preamble, the Board of Directors
of the Federal Deposit Insurance Corporation amends part 345 of chapter
III of title 12 of the Code of Federal Regulations to read as follows:

PART 345--COMMUNITY REINVESTMENT

0
1. The authority citation for part 345 continues to read as follows:

    Authority: 12 U.S.C. 1814-1817, 1819-1820, 1828, 1831u and 2901-
2907, 3103-3104, and 3108(a).


0
2. Revise Sec.  345.12(u)(1) to read as follows:


Sec.  345.12  Definitions.

* * * * *
    (u) Small bank--(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 $1.061 billion. Intermediate small bank means a small bank
with assets of at least $265 million as of December 31 of both of the
prior two calendar years and less than $1.061 billion as of December 31
of either of the prior two calendar years.
* * * * *

0
3. Revise the paragraph heading to Sec.  345.26(a)(1) to read as
follows:


Sec.  345.26  Small bank performance standards.

    (a) Performance criteria--(1) Small banks that are not intermediate
small banks. * * *
* * * * *

Department of the Treasury

Office of Thrift Supervision

12 CFR Chapter V

0
For the reasons discussed in the joint preamble, 12 CFR part 563e is
amended as follows:

PART 563e--COMMUNITY REINVESTMENT

0
1. The authority citation for part 563e continues to read as follows:

    Authority: 12 U.S.C. 1462a, 1463, 1464, 1467a, 1814, 1816,
1828(c), and 2901 through 2907.


0
2. Revise Sec.  563e.12(u)(1) to read as follows:


Sec.  563e.12  Definitions.

* * * * *
    (u) Small savings association--(1) Definition. Small savings
association means a savings association that, as of December 31 of
either of the prior two calendar years, had assets of less than $1.061
billion. Intermediate small savings association means a small savings
association with assets of at least $265 million as of December 31 of
both of the prior two calendar years and less than $1.061 billion as of
December 31 of either of the prior two calendar years.
* * * * *

0
3. Revise the paragraph heading to Sec.  563e.26(a)(1) to read as
follows:

[[Page 72574]]

Sec.  563e.26  Small savings association performance standards.

    (a) Performance criteria--(1) Small savings associations that are
not intermediate small savings associations. * * *
* * * * *

    Dated: December 5, 2007.
Julie L. Williams,
First Senior Deputy Comptroller and Chief Counsel.

    By order of the Board of Governors of the Federal Reserve
System.
    Dated: December 14, 2007.
Jennifer J. Johnson,
Secretary of the Board.

    By order of the Board of Directors.

    Dated at Washington, DC, this 10th day of December, 2007.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
    Dated: December 14, 2007.

    By the Office of Thrift Supervision.
John M. Reich,
Director.
 [FR Doc. E7-24719 Filed 12-20-07; 8:45 am]

BILLING CODE 4810-33-P