Section 612 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) imposes restrictions on conversions of certain national banks or federal savings associations to state-chartered institutions and conversions of certain state-chartered banks or savings associations to national banks or federal savings associations. The agencies that administer Section 612—the Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System (Board), and the Office of the Comptroller of the Currency (OCC) (collectively, the Agencies)—together with the Conference of State Bank Supervisors (CSBS) are issuing this Interagency Statement to outline supervisory expectations for conversions covered by this law.
Statement of Applicability to Institutions With Total Assets Under $1 Billion: This Financial Institution Letter applies to all FDIC-supervised banks and savings associations, including community institutions.
The Agencies and CSBS are issuing this guidance to clarify supervisory expectations for regulatory conversion requests subject to Section 612 of the Dodd-Frank Act.
Section 612 prohibits charter conversions by certain financial institutions subject to a cease and desist order (or other formal enforcement order) or a memorandum of understanding relating to a significant supervisory matter.
Institutions may request an exception to the conversion prohibition as described in Section 612(d).
The Agencies expect that exceptions will be rare and generally would occur only when the provisions of an enforcement action have been substantially addressed.
The July 2009 FFIEC Statement on Regulatory Conversions remains in effect.
FDIC-Supervised Banks (Commercial and Savings)