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.

Rules and Regulations Federal Register

77345 

Vol. 85, No. 232 

Wednesday, December 2, 2020 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Parts 3, 4, and 52 

[Docket ID OCC–2020–0044] 

RIN 1557–AF06 

FEDERAL RESERVE SYSTEM 

12 CFR Parts 208, 211, 212, 217, 225, 

235, and 238 

[Docket No. R–1731] 

RIN 7100–AG01 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Parts 304, 324, 337, 347, and 

348 

RIN 3064–AF67 

Temporary Asset Thresholds 

AGENCY: Office of the Comptroller of the 

Currency, Treasury (OCC); Board of 

Governors of the Federal Reserve 

System (Board); and Federal Deposit 

Insurance Corporation (FDIC). 

ACTION: Interim final rule, request for 

public comment. 

SUMMARY: To mitigate temporary 

transition costs on banking 

organizations related to the coronavirus 

disease 2019 (COVID event), the OCC, 

Board, and the FDIC (together, the 

agencies) are issuing an interim final 

rule to permit national banks, savings 

associations, state banks, bank holding 

companies, savings and loan holding 

companies, and U.S. branches and 

agencies of foreign banking 

organizations with under $10 billion in 

total assets as of December 31, 2019, 

(community banking organizations) to 

use asset data as of December 31, 2019, 

in order to determine the applicability 

of various regulatory asset thresholds 

during calendar years 2020 and 2021. 

For the same reasons, the Board is 

temporarily revising the instructions to 

a number of its regulatory reports to 

provide that community banking 

organizations may use asset data as of 

December 31, 2019, in order to 

determine reporting requirements for 

reports due in calendar years 2020 or 

2021. 

DATES: 

Effective date: This rule is effective on 

December 2, 2020. 

Comment date: Comments must be 

received on or before February 1, 2021. 

ADDRESSES: Comments should be 

directed to: 

OCC: You may submit comments to 

the OCC by any of the methods set forth 

below. Commenters are encouraged to 

submit comments through the Federal 

eRulemaking Portal, if possible. Please 

use the title ‘‘Temporary Asset 

Thresholds’’ to facilitate the 

organization and distribution of the 

comments. You may submit comments 

by any of the following methods: 

• Federal eRulemaking Portal— 

Regulations.gov Classic or 

Regulations.gov Beta. 

Regulations.gov Classic: Go to https:// 

www.regulations.gov/. Enter ‘‘Docket ID 

OCC–2020–0044’’ in the Search Box and 

click ‘‘Search.’’ Click on ‘‘Comment 

Now’’ to submit public comments. For 

help with submitting effective 

comments, please click on ‘‘View 

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Regulations.gov Beta: Go to https://

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the screen. For help with submitting 

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free) or (703) 454–9859 Monday–Friday, 

9 a.m.–5 p.m. ET or email to 

regulations@erulemakinghelpdesk.com. 

• Mail: Chief Counsel’s Office, Attn: 

Comment Processing, Office of the 

Comptroller of the Currency, 400 7th 

Street SW, Suite 3E–218, Washington, 

DC 20219. 

• 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–2020–0044’’ in your comment. 

In general, the OCC will enter all 

comments received into the docket and 

publish the comments on the 

Regulations.gov 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 

rulemaking action by the following 

methods: 

• Regulations.gov Classic or 

Regulations.gov Beta: 

Regulations.gov Classic: Go to https:// 

www.regulations.gov/. Enter ‘‘Docket ID 

OCC–2020–0044’’ in the Search box and 

click ‘‘Search.’’ Click on ‘‘Open Docket 

Folder’’ on the right side of the screen. 

Comments and supporting materials can 

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on the ‘‘Help’’ tab on the 

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The docket may be viewed after the 

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Regulations.gov Beta: Go to https://

beta.regulations.gov/ or click ‘‘Visit 

New Regulations.gov Site’’ from the 

Regulations.gov classic homepage. Enter 

‘‘Docket ID OCC 2020–0044’’ in the 

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77346 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 

1See ‘‘Supervisory and Regulatory Actions in 

Response to COVID–19,’’ available at https://

www.federalreserve.gov/supervisory-regulatoryaction-response-covid-19.htm.; ‘‘COVID–19 

(Coronavirus),’’ available at https://occ.gov/topics/ 

supervision-and-examination/bank-operations/ 

covid-19-information/convid-19-info-index.html; 

‘‘Coronavirus (COVID–19) Information for Bankers 

and Consumers,’’ available at https://www.fdic.gov/ 

coronavirus/. See also ‘‘The FDIC Approves Interim 

Final Rule to Provide Temporary Relief from Part 

363 Audit and Reporting Requirements,’’ available 

at https://www.fdic.gov/news/financial-institutionletters/2020/fil20099.html and Final Rule 

Mitigating the Deposit Insurance Assessment Effect 

of Participation in the Paycheck Protection Program 

(PPP), the PPP Liquidity Facility, and the Money 

Market Mutual Fund Liquidity Facility at https://

www.fdic.gov/news/financial-institution-letters/ 

2020/fil20063.html. 

2The SBA’s PPP was created under the 

Coronavirus Aid, Relief, and Economic Security Act 

(CARES Act) in response to market distress caused 

by the COVID–19 event. Public Law 116–136, 134 

Stat. 281. 

3 ‘‘Revised Interagency Statement on Loan 

Modifications by Financial Institutions Working 

with Customers Affected by the Coronavirus’’ (Apr. 

7, 2020), available at https://www.occ.gov/newsissuances/news-releases/2020/nr-ia-2020-50a.pdf. 

4 Data derived from the Consolidated Reports of 

Condition and Income (Call Report) and Financial 

screen or the ‘‘Refine Results’’ options 

on the left side of the screen. For 

assistance with the Regulations.gov Beta 

site please call (877) 378–5457 (toll free) 

or (703) 454–9859 Monday–Friday, 9 

a.m.–5 p.m. ET or email regulations@

erulemakinghelpdesk.com. 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–1731 and 

RIN No. 7100–AG01, by any of the 

following methods: 

• Agency Web Site: http://

www.federalreserve.gov. Follow the 

instructions for submitting comments at 

https://www.federalreserve.gov/apps/ 

foia/proposedregs.aspx. 

• E-mail: regs.comments@

federalreserve.gov. Include docket 

number and RIN in the subject line of 

the message. 

• Fax: (202) 452–3819 or (202) 452– 

3102. 

• Mail: Ann E. Misback, Secretary, 

Board of Governors of the Federal 

Reserve System, 20th Street and 

Constitution Avenue NW, Washington, 

DC 20551. 

All public comments are available 

from the Board’s website at http://

www.federalreserve.gov/generalinfo/ 

foia/ProposedRegs.cfm as submitted, 

unless modified for technical reasons or 

to remove sensitive PII at the 

commenter’s request. Public comments 

may also be viewed electronically or in 

paper form in Room 146, 1709 New 

York Avenue NW, Washington, DC 

20006, between 9:00 a.m. and 5:00 p.m. 

on weekdays. 

FDIC: You may submit comments on 

the notice of proposed rulemaking using 

any of the following methods: 

• Agency Website: https://

www.fdic.gov/regulations/laws/federal. 

Follow the instructions for submitting 

comments on the agency website. 

• Email: comments@fdic.gov. Include 

RIN 3064–AF67 on the subject line of 

the message. 

• Mail: Robert E. Feldman, Executive 

Secretary, Attention: Comments, Federal 

Deposit Insurance Corporation, 550 17th 

Street NW, Washington, DC 20429. 

• Hand Delivery: Comments may be 

hand delivered to the guard station at 

the rear of the 550 17th Street NW 

building (located on F Street) on 

business days between 7 a.m. and 5 p.m. 

• Public Inspection: All comments 

received, including any personal 

information provided, will be posted 

generally without change to https://

www.fdic.gov/regulations/laws/federal. 

FOR FURTHER INFORMATION CONTACT: 

OCC: Alison MacDonald, Special 

Counsel, or Kevin Korzeniewski, 

Counsel, Chief Counsel’s Office, (202) 

649–5490. 

Board: Juan Climent, Assistant 

Director, (202) 872–7526, Eric Kennedy, 

Assistant Director, (202) 263–4887, 

Nancy J. Oakes, Manager, (202) 452– 

3413, Teresa Scott, Manager, (202) 973– 

6114, Naima Jefferson, Lead Financial 

Institution Policy Analyst, (202) 912– 

4613, Daniel Newman, Senior Data 

Governance Analyst, (202) 973–7409, 

Senait Kahsay, Senior Financial 

Institution Policy Analyst II, (202) 245– 

4209, Joseph Willcox, Senior Financial 

Institution Policy Analyst II, (202) 452– 

3663, Division of Supervision and 

Regulation; Laurie Schaffer, Deputy 

General Counsel (202) 452–2272, 

Benjamin McDonough, Associate 

General Counsel, (202) 973–7432, Jonah 

Kind, Counsel (202) 452–2045, Justyna 

Bolter, Senior Attorney (202) 452–2686, 

Christopher Danello, Attorney, (202) 

736–1960, Legal Division, Board of 

Governors of the Federal Reserve 

System, 20th and C Streets NW, 

Washington, DC 20551. For users of 

Telecommunication Device for the Deaf 

(TDD), (202) 263–4869. 

FDIC: Rae-Ann Miller, Associate 

Director, Risk Management Policy, (202) 

898–3898, Bobby R. Bean, Associate 

Director, Capital Markets, (202) 898– 

6705; William Piervincenzi, Supervisory 

Counsel, (202) 898–6957, Nefretete A. 

Smith, Counsel, (202) 898–6851, 

Michael B. Phillips, Counsel, (202) 898– 

3581, Jennifer M. Jones, Counsel, (202) 

898–6768, jennjones@fdic.gov, 

Supervision and Legislation Branch, 

Legal Division, Federal Deposit 

Insurance Corporation, 550 17th Street 

NW, Washington, DC 20429. For the 

hearing impaired only, 

Telecommunication Device for the Deaf 

(TDD), (800) 925–4618. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Background 

II. Discussion 

A. Interim Final Rule 

B. Reservation of Authority 

C. Regulatory Reporting Changes 

III. Request for Comment 

IV. Administrative Law Matters 

A. Administrative Procedure Act 

B. Congressional Review Act 

C. Paperwork Reduction Act 

D. Regulatory Flexibility Act 

E. Riegle Community Development and 

Regulatory Improvement Act of 1994 

F. Unfunded Mandates Reform Act of 1995 

G. Use of Plain Language 

I. Background 

In light of strains in economic 

conditions related to the COVID event 

and stress in U.S. financial markets, the 

agencies have taken a number of actions 

intended to: (i) Restore market 

functioning and support the flow of 

credit to households, businesses, and 

communities and (ii) increase flexibility 

and reduce regulatory reporting burden. 

Among those actions, the agencies have 

issued a number of rules and 

supervisory guidance communications 

designed to mitigate the consequences 

of the COVID event and to facilitate the 

safe and effective operations of banking 

organizations.1

Community banking organizations 

have played an instrumental role in the 

nation’s financial response to the 

COVID event, and many have 

experienced significant balance sheet 

growth as a result of the COVID event 

and the policy response to the event. 

Policies encouraging banks to work with 

their customers, such as the Small 

Business Administration’s (SBA’s) 

Paycheck Protection Program (PPP) 2

and the interagency statement 

encouraging financial institutions to 

work with borrowers affected by the 

COVID event,3 have resulted in muchneeded emergency liquidity being 

offered to small businesses, including, 

but not limited to, individuals operating 

sole proprietorships or acting as 

independent contractors, certain 

franchisees, nonprofit corporations, 

veterans organizations, Tribal 

businesses, and households. As a result, 

during the COVID event many 

community banking organizations have 

experienced an unexpected and sharp 

increase in assets, swelling their balance 

sheets in some cases by more than 25 

percent.4 Much of this growth, 

Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 77347 

Statements for Holding Companies (FR Y–9C) data 

December 31, 2019 to June 30, 2020. 

5See https://www.federalreserve.gov/newsevents/ 

pressreleases/monetary20200409a.htm. 

6See Paycheck Protection Program Liquidity 

Facility Term Sheet, available at https://

www.federalreserve.gov/newsevents/pressreleases/ 

files/monetary20200728a7.pdf. 

7U.S. Small Business Administration, ‘‘Notice: 

Paycheck Protection Program closed August 8, 

2020,’’ available at https://www.sba.gov/fundingprograms/loans/coronavirus-relief-options/ 

paycheck-protection-program#section-header-0. 

8U.S. Small Business Administration, ‘‘SBA and 

Treasury Announce Simpler PPP Forgiveness for 

Loans of $50,000 or Less’’, October 8, 2020 available 

at https://www.sba.gov/article/2020/oct/08/sbatreasury-announce-simpler-ppp-forgiveness-loans50000-or-less. 

9U.S. Small Business Administration, ‘‘Paycheck 

Protection Program (PPP) Report: Approvals 

through 08/08/2020,’’ available at https://

home.treasury.gov/system/files/136/SBA-PaycheckProtection-Program-Loan-Report-Round2.pdf. 

10As of the June 30, 2020, approximately 80 

percent of depository institutions with assets less 

than $10 billion reported PPP loans on their Call 

Report. 11The agencies recognize there are some 

guidance documents that include asset-based 

thresholds of $10 billion or below. In these 

instances, the agencies are confirming that these 

thresholds are exemplary only and not suggestive 

of requirements. For the reasons discussed above, 

the agencies will take the same perspective on 

asset-based thresholds in guidance as they are 

taking with regard to asset-based regulatory 

thresholds. 

12Based on data as of June 30, 2020, the agencies 

estimate that around 44 holding companies and 582 

community banks crossed a regulatory threshold set 

at $10 billion or less. 

particularly that related to participation 

in PPP, is expected to be temporary. 

PPP loans are a special asset class of 

government-guaranteed assets designed 

to incentivize businesses to keep 

workers on payroll. To encourage 

lending to small businesses through the 

SBA’s PPP, the Board established the 

PPP Liquidity Facility on April 9, 2019.5

Under the PPP Liquidity Facility, each 

of the Federal Reserve Banks may 

extend non-recourse loans to banking 

organizations that pledge PPP loans, 

which continue to be assets on the 

balance sheets of banking organizations, 

as collateral.6 The last day for lenders to 

make a PPP loan was August 8, 2020,7

and depending on SBA determinations, 

a significant amount of PPP debt 

forgiveness may occur in the fourth 

calendar quarter of 2020 or early in the 

first calendar quarter of 2021. However, 

as a result of the PPP loan forgiveness 

process, many PPP-related assets remain 

on community banking organizations’ 

balance sheets. The SBA recently 

released a simpler loan forgiveness 

application for PPP loans of $50,000 or 

less, which will likely result in PPPrelated assets being removed from 

community banking organization’s 

balance sheets at a faster rate.8

According to SBA statistics, 

collectively all lenders with less than 

$10 billion in assets originated 

2,745,204 PPP loans totaling $233.7 

billion, which buttressed the paychecks 

of more than 26 million American 

workers and represented more than 52.6 

percent of the number of loans 

originated under the program.9 This 

data suggests that the percentage of PPP 

loans originated by community banking 

organizations far exceeds those 

organizations’ market share as a 

percentage of total banking system 

assets illustrating the outsized impact 

that participation in the PPP has had on 

community banking organizations.10

Community banking organizations are 

subject to a wide range of statutory 

requirements, regulations, and reporting 

requirements predicated on their risk 

profile and asset size.11 Due to their 

response to the COVID event, many 

community banking organizations have 

been, or may soon be, pushed over an 

asset threshold that could subject them 

to additional regulation or to additional 

reporting requirements.12 In the absence 

of regulatory burden relief, complying 

with these new or more stringent 

regulatory standards, especially if the 

community banking organization’s 

assets are expected to be above a 

threshold for a limited time, would 

impose significant transition and 

compliance costs on community 

banking organizations. This interim 

final rule gives community banking 

organizations more time to either reduce 

their balance sheets by shedding 

temporary growth, or to prepare for 

higher regulatory and reporting 

standards. 

II. Discussion 

A. Interim Final Rule 

A number of regulations contain 

asset-based thresholds that determine 

whether a banking organization is 

required to comply with a given 

regulatory requirement or provide a 

mandatory regulatory report, or whether 

a banking organization is otherwise 

eligible for a particular regulatory 

treatment. Asset-based regulatory 

thresholds are meant to ensure that the 

regulatory requirements applicable to a 

banking organization are appropriate, 

given the banking organization’s likely 

risk profile and, in some cases, the 

potential risk that the banking 

organization poses to U.S. financial 

stability. 

As discussed above, many community 

banking organizations have experienced 

an unexpected and sharp increase in 

assets since the beginning of the COVID 

event. This rapid growth has caused the 

assets of certain community banking 

organizations to rise above certain assetbased thresholds in the agencies’ 

regulations, and may cause other 

community banking organizations to do 

so in the near future. As noted, much of 

this growth, especially growth related to 

PPP lending, is likely to be temporary, 

and the increase in assets currently held 

by a community banking organization 

may not reflect a change in the 

organization’s longer-term risk profile. 

In the absence of regulatory burden 

relief, community banking organizations 

that experience an increase in assets 

above one or more regulatory thresholds 

would face significant transition costs 

necessary to comply with new or more 

stringent regulatory and reporting 

standards. Given the rapid and 

unexpected nature of community 

banking organization asset growth in 

2020, many community banking 

organizations are unlikely to have 

planned for these transition costs. 

Further, to the extent this asset growth 

is temporary, it does not reflect changes 

in community banking organizations’ 

risk profiles, and many community 

banking organizations that cross above 

asset-based regulatory thresholds could 

fall back below the thresholds. 

Additionally, community banking 

organizations that are approaching 

certain asset thresholds in the agencies’ 

regulations may become reluctant to 

continue lending if this would subject 

them to new or more stringent 

regulatory and reporting standards. 

Therefore, the agencies believe it is 

appropriate to provide temporary 

regulatory burden relief to community 

banking organizations that have risen 

above, or will rise above, certain assetbased regulatory thresholds. The relief 

should promote further lending and 

avoid potentially temporary, but 

significant, transition costs that 

community banking organizations 

would otherwise face to comply with 

new standards. 

In order to provide this regulatory 

burden relief, the agencies are issuing 

this interim final rule to temporarily 

change, for a number of asset-based 

regulatory thresholds, the date as of 

when a community banking 

organization measures its assets for the 

purpose of determining whether it 

exceeds the threshold (referred to as the 

‘‘measurement date’’). Specifically, the 

interim final rule will permit 

community banking organizations, 

through December 31, 2021, to 

determine the applicability of certain 

asset-based regulatory thresholds using 

asset data as of December 31, 2019, if 

the organization’s assets as of that date 

were less than its assets on the date as 

77348 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 

13This interim final rule does not address the 

exemption in the Board’s Regulation H from certain 

flood insurance escrow requirements for qualifying 

state member banks (less than $1 billion in assets 

as of December 31 of either of the two prior 

calendar years, provided other conditions are also 

met), 12 CFR 208.25(e)(3), or the provision in the 

Board’s Regulation BB defining small bank and 

intermediate small bank for purposes of 

determining applicable Community Reinvestment 

Act evaluation procedures. As currently defined in 

Regulation BB: a small bank is a bank that, as of 

December 31 of either of the prior two calendar 

years, had assets of less than $1.305 billion; an 

intermediate small bank is a small bank with assets 

of at least $326 million as of December 31 of both 

of the prior two calendar years and less than $1.305 

billion as of December 31 of either of the prior two 

calendar years; and a large bank is a bank with 

assets of at least $1.305 billion as of December 31 

of both of the prior two calendar years, 12 CFR 

228.12(u)(1). As indicated, the asset-based 

thresholds in these provisions take into account 

assets as of the end of the two previous calendar 

years. Therefore, the earliest that a bank with assets 

that did not exceed one of these thresholds as of 

December 31, 2019, could exceed the threshold is 

January 1, 2022. As a result, consistent with this 

interim final rule, asset growth in 2020 or 2021 will 

not trigger new regulatory requirements until 

January 1, 2022, at the earliest. For similar reasons, 

the interim final rule does not adjust thresholds in 

the OCC and the FDIC’s flood insurance escrow rule 

at 12 CFR 22.5(c) (OCC) and 12 CFR 339.5(c) (FDIC) 

and Community Reinvestment Act regulatory 

thresholds for small banks and intermediate banks 

at 12 CFR part 25 (OCC) and 12 CFR 345 (FDIC). 

The OCC also is not adjusting thresholds for 

depository institution management interlocks at 12 

CFR part 26, as this part already permits any 

affected bank to request a waiver related to 

unanticipated asset growth. 

14 This interim final rule only provides 

temporary relief with regard to the measurement 

date of assets. Other criteria that apply to certain 

of the affected regulatory provisions remain in 

effect, and the measurement date for other 

quantities has not been changed by this interim 

final rule. 

of which the applicability of a given 

threshold would normally be 

determined. This means that asset 

growth in 2020 or 2021 will not trigger 

new regulatory requirements for these 

community banking organizations until 

January 1, 2022, at the earliest. This 

temporary regulatory burden relief 

reflects that much of the asset growth 

since the start of the COVID event, 

especially growth related to PPP 

lending, is generally expected to be 

temporary in nature and therefore likely 

does not reflect changes in community 

banking organizations’ risk profile. 

The agencies are limiting the 

regulatory burden relief in this interim 

final rule to banking organizations that 

had less than $10 billion in assets as of 

December 31, 2019. Banking 

organizations with under $10 billion in 

assets likely have fewer resources 

available to prepare and comply with 

previously unanticipated regulatory 

requirements, especially during a time 

of economic uncertainty and disruption. 

Further, as discussed above, community 

banking organizations have originated a 

disproportionately large percentage of 

PPP loans, as compared with the 

organizations’ market share; therefore, 

as compared to larger organizations, a 

larger portion of any increase in asset 

size at community banking 

organizations is likely to be temporary, 

and is therefore less likely to reflect a 

change in an organization’s risk profile 

or business activities. 

This temporary regulatory burden 

relief applies to the following assetbased regulatory thresholds: 13

Regulation Regulatory threshold 

effect Asset-based threshold 14 Rule location Asset measurement date (prior to January 1, 2022) 

Asset measurement date 

(for requirements in 

2022) 

OCC: Capital Adequacy 

Standards (Part 3).

Board: Capital Adequacy 

of Bank Holding Companies, Savings and 

Loan Holding Companies, and State Member Banks (Regulation 

Q).

FDIC: Capital Adequacy 

of FDIC- Supervised 

Institutions.

Eligibility for community 

bank leverage ratio 

framework.

$10 billion in total consolidated assets.OCC: 12 CFR 3.12 .........

Board: 12 CFR 217.12 

FDIC: 12 CFR 324.12 

December 31, 2019, or 

the end of the most recent calendar quarter, 

whichever results in a 

lower amount.

End of the most recent 

calendar quarter. 

Board: Debit Card Interchange Fees and 

Routing (Regulation II).

Exemption for small 

issuers.

$10 billion in assets ........ Board: 12 CFR 235.5(a) December 31, 2019, or 

December 31, 2020, 

whichever results in a 

lower amount.

December 31, 2021. 

Board: Management Official Interlocks (Regulation L).

FDIC: Management Official Interlocks.

Exemption from prohibition on service as a 

‘‘management official’’ 

of multiple institutions.

$10 billion in total assets Board: 12 CFR 212.3(c) 

FDIC: 12 CFR 348.3(c) 

December 31, 2019, or 

the end of the depository organization’s 

most recent fiscal year, 

whichever results in a 

lower amount.

End of the most recent 

fiscal year. 

Exemption for honorary 

or advisory directors 

from definition of 

‘‘management official’’.

$100 million in total assets.Board: 12 CFR 

212.2(j)(1) 

FDIC: 12 CFR 

348.2(k)(1). 

Exemption from relevant 

metropolitan statistical 

area prohibition.

$50 million in total assets Board: 12 CFR 212.3(b)

FDIC: 12 CFR 348.3(b). 

Board: Savings and Loan 

Holding Companies 

(Regulation LL).

Interlocks—Major asset 

prohibition.

$10 billion ....................... Board: 12 CFR 238.93(c) December 31, 2019, or 

the end of the organization’s most recent 

fiscal year, whichever 

results in a lower 

amount.

End of the most recent 

fiscal year. 

Audit requirement for 

safety and soundness 

purposes.

$500 million .................... Board: 12 CFR 238.5(b) December 31, 2019, or 

end of the organization’s most recent fiscal year, whichever results in a lower amount.

End of the most recent 

fiscal year. 

Informational requirements for acquisition of 

a company.

$150 million .................... Board: 12 CFR 238.53(c)

(2)(iii)–(iv).

December 31, 2019, or 

the end of the most recent calendar quarter, 

whichever results in a 

lower amount.

End of the most recent 

calendar quarter. 

Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 77349 

15 12 CFR 235.5(a). 

16See 12 CFR 3.12(c) (OCC); 12 CFR 217.12(c) 

(Board); 12 CFR 324.12(c) (FDIC) (community bank 

leverage ratio framework); 12 CFR 235.5(a)(3) (rules 

regarding debit card interchange fees and routing). 

Regulation Regulatory threshold 

effect Asset-based threshold 14 Rule location Asset measurement date 

(prior to January 1, 2022) 

Asset measurement date 

(for requirements in 

2022) 

Interlocks—Exemption for 

honorary or advisory 

directors from definition 

of ‘‘management official’’.

$100 million .................... Board: 12 CFR 

238.92(j)(1) 

December 31, 2019, or 

the end of the organization’s most recent 

fiscal year, whichever 

results in a lower 

amount.

End of the most recent 

fiscal year. 

Interlocks—Exemption 

from relevant metropolitan statistical area 

prohibition.

$50 million ...................... Board: 12 CFR 238.93(b) December 31, 2019, or 

the end of the organization’s most recent 

fiscal year, whichever 

results in a lower 

amount.

End of the most recent 

fiscal year. 

OCC: Regulatory Reporting (Part 52).

Board: Membership of 

State Banking Institutions in the Federal 

Reserve System (Regulation H) 

FDIC: Forms, Instructions, and Reports 

Eligibility for reduced reporting of the Consolidated Reports of Condition and Income (Call 

Report).

$5 billion ......................... OCC: 12 CFR 52.2 

Board: 12 CFR 

208.122(b) 

FDIC: 12 CFR 304.12(a) 

December 31, 2019, or 

June 30, 2020, whichever results in a lower 

amount.

June 30, 2021. 

OCC: Organization and 

Functions (Part 4, Subpart A).

Board: Membership of 

State Banking Institutions in the Federal 

Reserve System (Regulation H).

FDIC: Unsafe and Unsound Bank Practices.

Eligibility for 18-month 

examination cycle.

$3 billion ......................... OCC: 12 CFR 4.6(b) ......

Board: 12 CFR 208.64(b) 

FDIC: 12 CFR 337.12(b) 

December 31, 2019, or 

the end of the most recent calendar quarter, 

whichever results in a 

lower amount.

End of most recent calendar quarter. 

Board: Membership of 

State Banking Institutions in the Federal 

Reserve System (Regulation H).

Eligibility for streamlined 

method of compliance 

with the reporting requirements of the Securities and Exchange 

Commission.

$150 million .................... 12 CFR 208.36(b) ........... December 31, 2019, or 

the end of the bank’s 

most recent fiscal year, 

whichever results in a 

lower amount.

End of the most recent 

fiscal year. 

Bank Holding Companies 

and Change in Bank 

Control (Regulation Y).

Various thresholds in the 

Board’s rules regarding 

bank holding companies and change in 

bank control (Regulation Y) concerning filing requirements and 

permissible activities.

$3 billion, $300 million, 

$150 million, and $50 

million.

12 CFR 225.4(b)(2) 

(iii)(A)–(B), 

225.14(a)(1)(v)(A)(1)– 

(2), 225.14(a)(1)(vi), 

224.14(c)(6)(ii), 

225.17(a)(6), 

225.23(a)(1)(iii)(A)(1)– 

(2), 225.23(c)(5)(ii), 

225.24(a)(2)(iv)–(v), 

225.28(b)(11)(vi), and 

Appendix C.

December 31, 2019, or 

the end of the most recent calendar quarter, 

whichever results in a 

lower amount.

Normally applicable asset 

measurement date. 

OCC: Organization and 

Functions (Part 4, Subpart A).

Board: International 

Banking Operations 

(Regulation K). 

FDIC: International Banking. 

Eligibility for an 18-month 

examination cycle for 

U.S. branches and 

agencies of foreign 

banks.

$3 billion ......................... OCC: 12 CFR 4.7(b) ......

Board: 12 CFR 

211.26(c)(2) 

FDIC: 12 CFR 

347.211(b) 

December 31, 2019, or 

the end of the most recent calendar quarter, 

whichever results in a 

lower amount.

End of most recent calendar quarter. 

As a result of this temporary 

regulatory burden relief, a community 

banking organization that was below 

one of the above-listed asset thresholds 

as of December 31, 2019, generally will 

be deemed to remain below that 

threshold through the end of 2021, plus 

any applicable transition period 

provided by the regulation. For 

example, the Board’s rules regarding 

debit card interchange fees and routing 

include an exemption for small issuers, 

which provides that a debit card issuer 

is not required to comply with certain 

requirements with respect to an 

electronic debit transaction if the issuer 

holds the account that is debited and 

the issuer, together with its affiliates, 

has assets of less than $10 billion as of 

the end of the calendar year preceding 

the date of the electronic debit 

transaction.15 Pursuant to this interim 

final rule, an issuer that, together with 

its affiliates, had assets of $9.9 billion as 

of December 31, 2019, $10.1 billion as 

of December 30, 2020, and $10.1 billion 

as of December 31, 2021, would be 

deemed to remain below the $10 billion 

threshold for purposes of this rule 

through the end of 2021, at which point 

the six-month transition period 

provided by 12 CFR 235.5(a)(3) would 

begin. Therefore, this issuer would not 

be required to comply with the Board’s 

rules regarding debit card interchange 

fees and routing until July 1, 2022. 

The temporary regulatory burden 

relief provided by this interim final rule 

applies through the end of 2021, so that 

a community banking organization 

within the scope of the temporary 

regulatory burden relief will not be 

required to comply with the regulatory 

or reporting requirements covered by 

this interim final rule until the 

beginning of 2022 (plus any applicable 

transition period),16 at the earliest, 

77350 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 

17 12 CFR 44.2(c) (OCC); 12 CFR 248.2(c) (Board); 

12 CFR 324.12(c) (FDIC). 

18 12 CFR 44.2(r) (OCC); 12 CFR 248.2(r)(2) 

(Board); 12 CFR 351.2(r)(2) (FDIC). The Economic 

Growth, Regulatory Relief, and Consumer 

Protection Act (EGRRCPA), enacted on May 24, 

2018, amended section 13 of the BHC Act by 

modifying the definition of ‘‘banking entity,’’ to 

exclude certain small firms from section 13’s 

restrictions. EGRRCPA, Public Law 115–174, 

section 203 (May 24, 2018). This amendment was 

effective upon EGRRCPA’s enactment. 

19Pursuant to sections (c)(2) and (c)(6) of the 

Volcker Rule (12 U.S.C. 1851(c)(2) and (c)(6)), the 

Board has sole authority to issue rules to implement 

the Volcker Rule conformance period. 

20See 12 CFR 225.181(a)(2), (3). 

21Although the conformance regulation refers to 

a requirement that a company was not a banking 

entity as of July 21, 2010, EGRRCPA’s change to the 

definition of ‘‘banking entity’’ means that a firm 

that was below the asset threshold as of July 21, 

2010, regardless of whether it was subject to the 

Volcker Rule at the time, is eligible for the 

conformance period if it becomes a banking entity 

due to exceeding the asset threshold. 

22With respect to the exemption for small issuers 

from the Board’s rules regarding debit card 

interchange fees and routing, the reservation of 

authority will concern a determination related to 

the issuer’s asset profile, rather than its risk profile, 

due to differences in the relevant statutory 

framework. 

23The interim final rule does not include a new 

reservation of authority in connection with the 

temporary relief provided with respect to the $3 

billion threshold in the agencies’ rules that 

determines, in part, a depository institution’s 

eligibility for an 18-month examination cycle, 

because the rules already contain a reservation of 

authority pursuant to which each agency may 

examine any depository institution that it 

supervises as frequently as the agency deems 

necessary. 12 CFR 4.6(c) and 4.7(c) (OCC); 12 CFR 

208.64(c) (Board); 12 CFR 337.12(c) and 12 CFR 

347.211(c) (FDIC). Amendments to the agencies’ 

capital regulations governing eligibility for use of 

the community bank leverage ratio framework and 

regulations affecting the prohibition on certain 

management official interlocks each include a 

reservation of authority. The agencies may exercise 

this reservation of authority to determine that such 

relief provisions shall not apply to a supervised 

institution if the relevant agency determines that 

such relief would not be commensurate with the 

risk posed by the institution. Amendments to the 

regulations governing eligibility to use the FFIEC 

051 do not include new reservations of authority 

because the existing reservations of authority would 

continue to apply. The existing Call Reports rules 

reserve the authority of each agency to require a 

depository intuition otherwise eligible for reduced 

reporting to file the FFIEC 041 version of the report 

of condition. 12 CFR 52.4 (OCC); 12 CFR 304.14 

(FDIC). 24The temporary regulatory burden relief 

provided by this interim final rule does not 

eliminate any existing authority of the Board to 

apply a regulatory standard, such as a standard 

related to application processing, to a community 

banking organization that, due to its asset size, 

would otherwise not qualify for the standard. For 

example, a bank holding company that meets 

certain characteristics, including asset-size limits, 

may be eligible for streamlined application 

processing. However, the Board or its delegatee may 

in its discretion notify such organizations that a full 

application is required in order to permit a closer 

assuming that the organization remains 

above the relevant threshold. 

The agencies have determined not to 

amend in this interim final rule a 

provision in the agencies’ regulations 

regarding section 13 of the Bank 

Holding Company Act (BHC Act) 

(commonly known as the Volcker Rule). 

The Volcker Rule generally applies to 

‘‘banking entities,’’ which include 

insured depository institutions, their 

affiliates, and any company that 

controls an insured depository 

institution, among other companies.17

For purposes of the Volcker Rule, the 

definition of ‘‘insured depository 

institution’’ excludes an insured 

depository institution if the insured 

depository institution, and every entity 

that controls it, has total consolidated 

assets equal to or less than $10 billion, 

as long as the total consolidated trading 

assets and liabilities of the insured 

depository institution, and every entity 

that controls it, are equal to or less than 

five percent of the insured depository 

institution’s total consolidated assets.18

The agencies have determined that it 

is not necessary to amend the Volcker 

Rule regulations in order to provide 

temporary regulatory burden relief to a 

bank or any of its subsidiaries or 

affiliates that become a ‘‘banking entity’’ 

for purposes of the Volcker Rule 

because the assets of the bank or any 

entity that controls it increase above the 

$10 billion asset threshold. Under 

section 13 of the BHC Act and the 

Board’s rule implementing the 

conformance period in the Volcker 

Rule,19 an entity that newly becomes a 

‘‘banking entity’’ for purposes of the 

Volcker Rule has two years to come into 

compliance with the requirements of the 

Volcker Rule, and may seek an 

extension of the conformance period 

from the Board.20 A banking entity that 

ceases to be a banking entity during that 

period—for example by virtue of 

reducing its asset size—would no longer 

be subject to the Volcker Rule. 

The regulation implementing the 

statutory Volcker Rule conformance 

period have not yet been updated to 

account for the change in the definition 

of ‘‘banking entity’’ implemented by 

EGRRCPA. However, the Board notes 

that because the changes EGRRCPA 

made to the Volcker Rule were effective 

immediately upon enactment, the 

conformance period regulation should 

be read in a way that is consistent with 

EGRRCPA and takes into account the 

amendments it made to the definition of 

‘‘banking entity.’’ Under this 

interpretation, a company may become 

a new banking entity by virtue of 

crossing the $10 billion asset threshold 

under the definition of ‘‘banking 

entity,’’ as amended by EGRRCPA. 

Therefore, for the sake of clarification, 

the Board confirms that a company that 

was not a banking entity, or a subsidiary 

or affiliate of a banking entity, and then 

becomes a banking entity for purposes 

of the Volcker Rule because it, or any 

subsidiary or affiliate, exceeds $10 

billion in assets, will qualify for the 

conformance period described in the 

Volcker Rule and the Board’s 

implementing regulations.21 This 

interpretation covers any company that 

crossed the $10 billion asset threshold 

after the enactment of EGRRCPA on 

May 24, 2018, including a company that 

crossed the threshold after December 31, 

2019. 

A. Reservation of Authority 

The temporary regulatory burden 

relief described above is generally 

available to community banking 

organizations that meet the 

requirements described above. However, 

there may be limited instances in which 

such regulatory burden relief would be 

inappropriate. In order to address 

certain such situations, the agencies 

may use existing reservations of 

authority in their respective regulations 

to require a community banking 

organization to comply with a given 

regulatory requirement that would 

otherwise not be applicable to the 

organization pursuant to the relief 

provided by this interim final rule. 

Additionally, with respect to each of the 

asset-based regulatory thresholds that 

did not previously include a reservation 

of authority, the interim final rule 

creates a new reservation of authority 

pursuant to which an agency may 

determine that a community banking 

organization is not eligible to use the 

relief provision with respect to one or 

more of the asset thresholds covered by 

the rule if the relevant agency makes an 

institution-specific determination that 

permitting the institution to determine 

its assets in accordance with that relief 

provision would not be appropriate 

based on the organization’s risk 

profile.22 23 When making any such 

determination, the agencies would 

consider all relevant factors, including 

the extent of asset growth of the 

community banking organization since 

December 31, 2019; the causes of such 

growth, including whether growth 

occurred as a result of mergers or 

acquisitions; whether such growth is 

likely to be temporary or permanent; 

whether the community banking 

organization has become involved in 

any additional activities since December 

31, 2019, and, if so, the risk of such 

activities; the asset size of any parent 

companies; and the type of assets held 

by the community banking 

organization.24

Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 77351 

review of the proposal. Nothing in this interim final 

rule affects the Board’s authority to exercise such 

discretion, to request information that is needed to 

analyze the relevant statutory factors for an 

application or notice, or to consider the ability of 

a community banking organization that files a 

notice or application with the Board to comply with 

statutory or regulatory requirements that may be 

applicable to the organization upon expiration of 

the relief provided by this interim final rule. 

Certain provisions of the Board’s Regulation Y 

include asset-based thresholds of $10 billion or 

below that are based on the pro forma consolidated 

assets of a bank holding company or the 

consolidated risk-weighted assets of a bank holding 

company immediately following consummation of 

a proposed transaction. With regard to these 

thresholds, the interim final rule permits bank 

holding companies, through 2021, to calculate pro 

forma assets by adding together the assets that each 

company involved in a business combination had 

as of December 31, 2019. However, the calculation 

of pro forma or combined assets must also include 

the December 31, 2019, assets of any company with 

which any company that is party to a proposed 

business combination has itself combined with 

since December 31, 2019. 

In particular, in determining that the 

community banking organization is not 

eligible to use a regulatory burden relief 

provision, the relevant agency will 

consider whether a community banking 

organization crossed an asset-based 

regulatory threshold due to a merger or 

acquisition that significantly increases 

the community banking organization’s 

asset size. Asset growth that occurs as 

a result of a merger or acquisition is 

planned, unlike the growth that many 

community banking organizations have 

experienced since the beginning of the 

COVID event. Community banking 

organizations crossing a regulatory 

threshold as a result of a merger or 

acquisition therefore have had the 

opportunity to prepare for the change in 

regulatory requirements. Additionally, 

asset growth caused by a merger or 

acquisition is generally expected to be 

permanent and therefore not impose 

transition costs for a requirement 

expected to be temporary. The 

reservations of authority included in 

this interim final rule are not limited to 

situations in which there has been a 

merger or acquisition because, even in 

the absence of a merger or acquisition 

transaction, significant asset growth at a 

community banking organization may 

reflect a material change in the business 

model, risk profile, or complexity of the 

community banking organization. 

Nonetheless, the agencies expect to 

apply the reservation of authority only 

in limited circumstances, such as when 

there is significant growth due to a 

merger or acquisition or when there is 

a material change in the business model, 

risk profile, or complexity of the 

community banking organization. 

B. Regulatory Reporting Changes 

Similar to the Board’s regulations, a 

number of the Board’s regulatory reports 

contain asset-based thresholds that 

determine whether a banking 

organization is required to report certain 

information. For the same reason that 

the Board is providing the regulatory 

burden relief discussed above with 

regard to determining the applicability 

of asset-based thresholds contained in 

the Board’s regulations, the Board is 

temporarily revising certain of its 

regulatory reports that contain assetbased reporting thresholds set at $10 

billion or less pursuant to the Board’s 

authority to temporarily revise a 

collection of information without 

providing the opportunity for public 

comment. This regulatory burden relief 

applies to reports with as-of dates up to 

and including December 31, 2021. 

Specifically, with regard to each of the 

regulatory reports discussed below, 

through December 31, 2021, a banking 

organization will be permitted to 

determine the applicability of assetbased reporting thresholds set at $10 

billion or less using asset data as of 

December 31, 2019, if the organization’s 

assets as of that date were less than its 

assets on the date as of which the 

applicability of a given threshold would 

normally be determined. The revisions 

to the affected reports do not affect the 

substantive reporting instructions for 

any item, schedule, or report. Rather, 

they merely affect which banking 

organizations are required to report 

certain items, schedules, or reports. 

As with regard to asset-based 

regulatory thresholds, and for the same 

reasons, the Board will retain a 

reservation of authority with regard to 

each of the affected reports, pursuant to 

which the Board would retain the 

authority to require a banking 

organization to use an asset 

measurement date other than December 

31, 2019, to determine compliance with 

a reporting threshold. The Board will 

use the same factors in determining 

whether to exercise its reservation of 

authority with regard to reporting 

thresholds as with regard to regulatory 

thresholds. 

The regulatory burden relief 

discussed above applies to the following 

information collections: 

• Financial Statements for Holding 

Companies (FR Y–9 Reports; OMB No. 

7100–0128); 

• Statements of U.S. Nonbank 

Subsidiaries of U.S. Holding Companies 

(FR Y–11 and FR Y–11S; 7100–0244); 

• Reports of Foreign Banking 

Organizations (FR Y–7N, FR Y–7NS, 

and FR Y–7Q; 7100–0125); and 

• Statements of Foreign Subsidiaries 

of U.S. Banks (FR 2314 and FR 2314S; 

OMB No. 7100–0073). 

The agencies plan to publish a 

separate Federal Register notice that 

will address corresponding changes to 

the Call Reports. 

The following chart summarizes the 

manner in which banking organizations 

will be required to determine the 

applicability of various reporting 

thresholds through the end of 2021 and 

afterwards. 

TABLE 1—REPORTING REQUIREMENTS FOR AFFECTED FEDERAL RESERVE REPORTS UNDER THE INTERIM FINAL RULE AND

AFTER REGULATORY BURDEN RELIEF ENDS 1

Information collection Reporting applicability for 2020–2021 Filers use assets as of these dates to 

determine reporting requirement for 2022 2

FR Y–9C (quarterly)—Consolidated Financial 

Statements for Holding Companies.

Report filing not required for holding company 

below the $3 billion asset threshold using 

the lesser of most current filing applicable 

date or 12/31/2019 as-of-date.

Use 06/30/2021 total assets to determine reporting applicability for reports with 2022 asof dates. 

FR Y–9LP (quarterly)—Parent Company Only 

Financial Statements for Large Holding 

Companies.

Report filing not required for holding company 

below the $3 billion asset threshold using 

the lesser of most current filing applicable 

date or 12/31/2019 as-of-date.

Use 06/30/2021 total assets to determine reporting applicability for reports with 2022 asof dates. 

77352 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 

TABLE 1—REPORTING REQUIREMENTS FOR AFFECTED FEDERAL RESERVE REPORTS UNDER THE INTERIM FINAL RULE AND

AFTER REGULATORY BURDEN RELIEF ENDS 1—Continued 

Information collection Reporting applicability for 2020–2021 Filers use assets as of these dates to 

determine reporting requirement for 2022 2

FR Y–11 (quarterly)—Financial Statements of 

U.S. Nonbank Subsidiaries of U.S. Bank 

Holding Companies.

Quarterly report filing not required if nonbank 

subsidiary had assets of at least $500 million but less than $1 billion using the lesser 

of most current filing applicable date or 12/ 

31/2019 as-of-date and does not meet any 

the other criteria to file quarterly.

Use 06/30/2021 total assets to determine eligibility for reports with 2022 as-of dates. 

FR Y–11 (annual)—Financial Statements of 

U.S. Nonbank Subsidiaries of U.S. Bank 

Holding Companies.

Annual report filing not required if nonbank 

subsidiary has assets of less than $500 million using the lesser of most current filing 

applicable date or 12/31/2019 as-of-date.

Use total assets as of the reporting as-of date 

(12/31/2022) to determine reporting applicability. 

FR Y–11S (annual)—Abbreviated Financial 

Statements of U.S. Nonbank Subsidiaries of 

U.S. Holding Co.

Report filing not required if nonbank subsidiary was not greater than $250 million 

and less than $500 million using the lesser 

of most current filing applicable date or 12/ 

31/2019 as-of-date and does not meet the 

other filing criteria.

Use total assets as of the reporting as-of date 

(12/31/2022) to determine reporting applicability. 

FR Y–7N (quarterly)—Financial Statements of 

U.S. Nonbank Subsidiaries Held by Foreign 

Banking Organizations.

Quarterly report filing not required if nonbank 

subsidiary was below the $1 billion asset 

threshold using the lesser of most current 

filing applicable date or 12/31/2019 as-ofdate and does not meet any other filing criteria.

Use total assets as of the reporting as-of date 

to determine reporting applicability. 

FR Y–7N (annual)—Financial Statements of 

U.S. Nonbank Subsidiaries Held by Foreign 

Banking Organizations.

Report filing not required if nonbank subsidiary was not greater than $500 million 

and less than $1 billion using lesser of most 

current filing applicable date or 12/31/2019 

as-of-date and does not meet any other filing criteria.

Use total assets as of the reporting as-of date 

(12/31/2022) to determine reporting applicability. 

FR Y–7NS (annual)—Abbreviated Financial 

Statements of U.S. Nonbank Subsidiaries 

Held by Foreign Banking Organizations.

Report filing not required if nonbank subsidiary was not greater than $250 million 

and less than $500 million using the lesser 

of most current filing applicable date or 12/ 

31/2019 as-of-date and does not meet the 

other filing criteria.

Use total assets as of the reporting as-of date 

(12/31/2022) to determine reporting applicability. 

FR 2314 (quarterly)—Financial Statements of 

Foreign Subsidiaries of U.S. Banking Organizations.

Quarterly report filing not required if nonbank 

subsidiary has assets less than $1 billion 

using the lesser of most current filing applicable date or 12/31/2019 as-of-date and 

does not meet any of other criteria to file 

quarterly.

Use 06/30/2021 total assets to determine eligibility for reports with 2022 as-of dates. 

FR 2314 (annual)—Financial Statements of 

Foreign Subsidiaries of U.S. Banking Organizations.

Report filing not required if nonbank was not 

greater than $500 million and less than $1 

billion in total assets using lesser of most 

current filing applicable date or 12/31/2019 

as-of-date.

Use total assets as of the reporting as-of date 

(12/31/2022) to determine reporting applicability. 

FR 2314S (annual)—Abbreviated Financial 

Statements of Foreign Subsidiaries of U.S. 

Banking Org.

Report filing not required if nonbank was not 

greater than $250 million and less than 

$500 million in total asset using the lesser 

of most current filing applicable date or 12/ 

31/2019 as-of-date.

Use total assets as of the reporting as-of date 

(12/31/2022) to determine reporting applicability. 

1 During 2020–2021, applicability of new reporting requirements would be based on the December 31, 2019 data. For example, a holding company that does not currently file the FR Y–9C will not use its June 2020 total consolidated assets (TCA) to determine the March 31, 2021, filing 

requirement, and would not be required to file the FR Y–9C report until March 21, 2022. After the regulatory burden relief ends, the institution 

would use June 30, 2021, TCA to determine initial filing for the March 31, 2022, reporting period. 2Beginning January 1, 2022, asset measurement for applicability of reporting will revert-back to how institutions determined applicability prior 

to the reporting relief. 

II. Request for Comment 

The agencies seek comment on all 

aspects of this interim final rule. In 

particular, the agencies seek comment 

on the duration of the temporary 

regulatory burden relief and on the 

following specific question: 

(1): What are the advantages and 

disadvantages of requiring community 

banking organizations subject to this 

interim final rule to determine 

compliance with regulatory thresholds 

using the lesser of an organization’s 

assets as of December 31, 2019, and its 

assets on the date as of which the 

applicability of a given threshold would 

normally be determined? What would 

be the advantages and disadvantages of 

an alternative measurement date? 

Commenters are invited to describe 

other dates and the advantages and 

disadvantages of any such dates. 

III. Administrative Law Matters 

A. Administrative Procedure Act 

The agencies are issuing the interim 

final rule without prior notice and the 

opportunity for public comment and 

without the 30-day delayed effective 

date ordinarily prescribed by the 

Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 77353 

25 5 U.S.C. 553. 

26 5 U.S.C. 553(b)(B). 

27 5 U.S.C. 553(d). 

28 5 U.S.C. 801 et seq. 

29 5 U.S.C. 801(a)(3). 

30 5 U.S.C. 804(2). 31 44 U.S.C. 3501–3521. 

Administrative Procedure Act (APA).25

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 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.’’ 26

As discussed above, the interim final 

rule provides temporary regulatory 

burden relief to community banking 

organizations crossing regulatory and 

reporting asset thresholds in 2020 and 

2021. Many community banking 

organizations have experienced 

dramatic and unexpected increases in 

their assets as a result of their efforts to 

support the economy during the 

ongoing COVID event. As noted, a 

significant portion of this asset growth 

can be traced to participation by 

community banking organizations in 

emergency lending programs sponsored 

by the U.S. government, other lending 

related to the COVID event, and an 

unexpected surge in deposits. The 

interim final rule facilitates the ability 

of community banking organizations to 

temporarily defer the implementation of 

regulatory and reporting thresholds that 

would not have been applicable had 

they not experienced this growth in 

assets. Therefore, the interim final rule 

benefits community banking 

organizations from the above referenced 

regulations and reports by providing 

temporary regulatory burden relief. The 

interim final rule does not impose any 

requirements on any covered 

community banking organizations. 

The agencies believe that the public 

interest is best served by making the 

interim final rule effective immediately 

upon publication in the Federal 

Register. The agencies believe that 

issuing the interim final rule will ensure 

that community banking organizations 

will not be unnecessarily required to 

comply with threshold-based regulatory 

standards that may not be appropriate 

given the organizations’ likely long-term 

risk profile and activities after the 

reversal of any temporary growth. The 

interim final rule also will allow 

community banking organizations to 

avoid the costs of temporarily 

complying with regulatory 

requirements, allowing the banking 

organizations to continue to focus on 

the provision of credit during this time 

of economic stress. In addition, the 

agencies believe that providing a notice 

and comment period prior to issuance of 

the interim final rule is impracticable, 

as community banking organizations 

may start incurring transition costs prior 

to the end of 2020 in anticipation of 

needing to comply with additional 

requirements starting as early as 

December 31, 2020. For these reasons, 

the agencies find there is good cause 

consistent with the public interest to 

issue the interim final rule without 

advance notice and comment. 

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.27 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. 

While the agencies believe there is 

good cause to issue the interim final 

rule without advance notice and 

comment and with an immediate 

effective date, the agencies are 

requesting comment on all aspects of 

the interim final rule. 

B. Congressional Review Act 

For purposes of Congressional Review 

Act (CRA), OMB makes a determination 

as to whether a final rule constitutes a 

‘‘major’’ rule.28 If a rule is deemed a 

‘‘major rule’’ by the OMB, the CRA 

generally provides that the rule may not 

take effect until at least 60 days 

following its publication.29

The CRA 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 $100,000,000 

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 foreignbased enterprises in domestic and 

export markets.30

For the same reasons set forth above, 

the agencies are adopting the interim 

final rule without the delayed effective 

date generally prescribed under the 

CRA. The delayed effective date 

required by the CRA does not apply to 

any rule for which an agency for good 

cause finds (and incorporates the 

finding and a brief statement of reasons 

therefor in the rule issued) that notice 

and public procedure thereon are 

impracticable, unnecessary, or contrary 

to the public interest. In light of current 

market uncertainty and because 

community banking organizations may 

start incurring transition costs prior to 

the end of 2020 in anticipation of 

needing to comply with additional 

requirements starting as early as 

December 31, 2020, the agencies believe 

that delaying the effective date of the 

rule would be contrary to the public 

interest. 

As required by the CRA, the agencies 

will submit the final rule and other 

appropriate reports to Congress and the 

Government Accountability Office for 

review. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(PRA) states that no agency may 

conduct or sponsor, nor is a respondent 

required to respond to, an information 

collection unless it displays a currently 

valid OMB control number.31 The 

interim final rule affects the agencies’ 

current information collections for the 

Call Reports (FFIEC 031, FFIEC 041, and 

FFIEC 051). The OMB control numbers 

for the Call Reports of the agencies are: 

OCC OMB No. 1557–0081; Board OMB 

No. 7100–0036; and FDIC OMB No. 

3064–0052. 

For purposes of the Call Reports, any 

change resulting from the relief 

provided by this interim final rule 

should be minimal and result in a zero 

net change in hourly burden under the 

agencies’ information collections. 

Submissions will, however, be made by 

the agencies to OMB. The changes to the 

instructions of the Call Reports will be 

addressed in a separate Federal Register 

notice. 

In addition, this interim final rule 

does not introduce any new information 

collections. It does, however, 

temporarily impact the following 

information collections: FR Y–9 

Reports; FR Y–11; FR Y–11S; FR Y–7N; 

FR Y–7NS; FR 2314; and FR 2314S. The 

Board has reviewed this interim final 

rule pursuant to authority delegated by 

the OMB. The Board has temporarily 

revised the instructions for these 

information collections to reflect 

changes made in the interim final rule. 

On June 15, 1984, OMB delegated to 

the Board authority under the PRA to 

approve a temporary revision to a 

collection of information without 

77354 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 

providing opportunity for public 

comment if the Board determines that a 

change in an existing collection must be 

instituted quickly and that public 

participation in the approval process 

would defeat the purpose of the 

collection or substantially interfere with 

the Board’s ability to perform its 

statutory obligation. 

The Board’s delegated authority 

requires that the Board, after 

temporarily approving a collection, 

solicit public comment on a proposal to 

extend the temporary collection for a 

period not to exceed three years. 

Therefore, the Board is inviting 

comment on a proposal to extend these 

information collections for three years 

with such revisions. The Board invites 

public comment on the information 

collections, which are being reviewed 

under authority delegated by the OMB 

under the PRA. Comments are invited 

on the following: 

a. Whether the collections of 

information are necessary for the proper 

performance of the Board’s functions, 

including whether the information has 

practical utility; 

b. The accuracy of the Board’s 

estimate of the burden of the proposed 

information collections, including the 

validity of the methodology and 

assumptions used; 

c. Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

d. Ways to minimize the burden of 

information collection on respondents, 

including through the use of automated 

collection techniques or other forms of 

information technology; and 

e. Estimates of capital or startup costs 

and costs of operation, maintenance, 

and purchase of services to provide 

information. 

Comments must be submitted on or 

before February 1, 2021. At the end of 

the comment period, the comments and 

recommendations received will be 

analyzed to determine the extent to 

which the Board should modify the 

information collection. 

Approval Under OMB Delegated 

Authority of the Temporary Revision of, 

and Proposal To Extend for Three Years, 

With Revision, the Following 

Information Collections 

1. Report Title: Financial Statements for 

Holding Companies 

Agency form number: FR Y–9C, FR Y– 

9LP, FR Y–9SP, FR Y–9ES, and FR Y– 

9CS. 

OMB control number: 7100–0128. 

Effective date: December 2, 2020. 

Frequency: Quarterly, semiannually, 

and annually. 

Respondents: Bank holding 

companies, savings and loan holding 

companies, securities holding 

companies, and U.S. intermediate 

holding companies (collectively, 

holding companies). 

Estimated number of respondents: FR 

Y–9C (non-advanced approaches 

community bank leverage ratio holding 

companies with less than $5 billion in 

total assets): 71; FR Y–9C (nonadvanced approaches community bank 

leverage ratio holding companies with 

$5 billion or more in total assets): 35; FR 

Y–9C (non-advanced approaches, noncommunity bank leverage ratio, holding 

companies with less than $5 billion in 

total assets): 84; FR Y–9C (nonadvanced approaches, non-community 

bank leverage ratio holding companies, 

with $5 billion or more in total assets): 

154; FR Y–9C (advanced approaches 

holding companies): 19; FR Y–9LP: 434; 

FR Y–9SP: 3,960; FR Y–9ES: 83; FR Y– 

9CS: 236. 

Estimated annual burden hours: 

Reporting 

FR Y–9C (non-advanced approaches 

community bank leverage ratio holding 

companies with less than $5 billion in 

total assets): 8,284 hours; FR Y–9C (nonadvanced approaches community bank 

leverage ratio holding companies with 

$5 billion or more in total assets): 4,920; 

FR Y–9C (non-advanced approaches 

non community bank leverage ratio 

holding companies with less than $5 

billion in total assets): 13,779; FR Y–9C 

(non-advanced approaches noncommunity bank leverage ratio holding 

companies with $5 billion or more in 

total assets): 28,940 hours; FR Y–9C 

(advanced approaches holding 

companies): 3,747 hours; FR Y–9LP: 

9,149 hours; FR Y–9SP: 42,768 hours; 

FR Y–9ES: 42 hours; FR Y–9CS: 472 

hours. 

Recordkeeping 

FR Y–9C (non-advanced approaches 

holding companies with less than $5 

billion in total assets): 620 hours; FR Y– 

9C (non-advanced approaches holding 

companies with $5 billion or more in 

total assets): 756 hours; FR Y–9C 

(advanced approaches holding 

companies): 76 hours; FR Y–9LP: 1,736 

hours; FR Y–9SP: 3,960 hours; FR Y– 

9ES: 42 hours; FR Y–9CS: 472 hours. 

General description of report: The FR 

Y–9 family of reporting forms continues 

to be the primary source of financial 

data on holding companies that 

examiners rely on in the intervals 

between on-site inspections. Financial 

data from these reporting forms are used 

to detect emerging financial problems, 

to review performance and conduct preinspection analysis, to monitor and 

evaluate capital adequacy, to evaluate 

holding company mergers and 

acquisitions, and to analyze a holding 

company’s overall financial condition to 

ensure the safety and soundness of its 

operations. The FR Y–9C, FR Y–9LP, 

and FR Y–9SP serve as standardized 

financial statements for the consolidated 

holding company. The Board requires 

holding companies to provide 

standardized financial statements to 

fulfill the Board’s statutory obligation to 

supervise these organizations. The FR 

Y–9ES is a financial statement for 

holding companies that are Employee 

Stock Ownership Plans. The Board uses 

the voluntary FR Y–9CS (a free-form 

supplement) to collect additional 

information deemed to be critical and 

needed in an expedited manner. 

Holding companies file the FR Y–9C 

quarterly, the FR Y–9LP quarterly, the 

FR Y–9SP semiannually, the FR Y–9ES 

annually, and the FR Y–9CS on a 

schedule that is determined when this 

supplement is used. 

Legal authorization and 

confidentiality: The Board has the 

authority to impose the reporting and 

recordkeeping requirements associated 

with the FR Y–9 family of reports on 

bank holding companies pursuant to 

section 5 of the BHC Act, (12 U.S.C. 

1844); on savings and loan holding 

companies pursuant to section 10(b)(2) 

and (3) of the Home Owners’ Loan Act, 

(12 U.S.C. 1467a(b)(2) and (3)); on U.S. 

intermediate holding companies 

pursuant to section 5 of the BHC Act, 

(12 U.S.C 1844), as well as pursuant to 

sections 102(a)(1) and 165 of the DoddFrank Wall Street Reform and Consumer 

Protection Act (Dodd-Frank Act), (12 

U.S.C. 511(a)(1) and 5365); and on 

securities holding companies pursuant 

to section 618 of the Dodd-Frank Act, 

(12 U.S.C. 1850a(c)(1)(A)). The FR Y–9 

series of reports, and the recordkeeping 

requirements set forth in the respective 

instructions to each report, are 

mandatory, except for the FR Y–9CS, 

which is voluntary. 

With respect to the FR Y–9C, 

Schedule HI Memoranda item 7.g, 

Schedule HC–P item 7.a, and Schedule 

HC–P item 7.b are considered 

confidential commercial and financial 

information under exemption 4 of the 

Freedom of Information Act (FOIA), (5 

U.S.C. 552(b)(4)), as is Schedule HC 

Memoranda item 2.b for both the FR Y– 

9C and FR Y–9SP reports. Such 

treatment is appropriate under 

exemption 4 of the FOIA (5 U.S.C. 

552(b)(4)) because these data items 

reflect commercial and financial 

information that is both customarily and 

actually treated as private by the 

Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 77355 

32See 12 U.S.C. 1464(v)(2). 

33Exemption 8 of the Freedom of Information Act 

(FOIA) specifically exempts from disclosure 

information ‘‘contained in or related to 

examination, operating, or condition reports 

prepared by, on behalf of, or for the use of an 

agency responsible for the regulation or supervision 

of financial institutions.’’ 

submitter, and which the Board has 

previously assured submitters will be 

treated as confidential. It also appears 

that disclosing these data items may 

reveal confidential examination and 

supervisory information, and in such 

instances, this information would also 

be withheld pursuant to exemption 8 of 

the FOIA (5 U.S.C. 552(b)(8)), which 

protects information related to the 

supervision or examination of a 

regulated financial institution. 

In addition, for both the FR Y–9C 

report and the FR Y–9SP report, 

Schedule HC Memoranda item 2.b, the 

name and email address of the external 

auditing firm’s engagement partner, is 

considered confidential commercial 

information and protected by exemption 

4 of the FOIA (5 U.S.C. 552(b)(4)) if the 

identity of the engagement partner is 

treated as private information by 

holding companies. The Board has 

assured respondents that this 

information will be treated as 

confidential since the collection of this 

data item was proposed in 2004. 

Additionally, items on the FR Y–9C, 

Schedule HC–C regarding loans 

modified under Section 4013 

(Memoranda item 16.a, ‘‘Number of 

Section 4013 loans outstanding’’, and 

Memoranda item 16.b, ‘‘Outstanding 

balance of Section 4013 loans’’) are 

considered confidential. While the 

Board generally makes institution-level 

FR Y–9C report data publicly available, 

the Board believes the disclosure of 

these items at the holding company 

level would not be in the public 

interest.32 Such information is 

permitted to be collected on a 

confidential basis, consistent with 5 

U.S.C. 552(b)(8).33 Holding companies 

may be reluctant to offer modifications 

under Section 4013 if information on 

these modifications is publicly 

available, as analysts, investors, and 

other users of public FR Y–9C report 

information may penalize an institution 

for using the relief provided by the 

CARES Act. 

Aside from the data items described 

above, the remaining data items on the 

FR Y–9 report and the FR Y–9SP report 

are generally not accorded confidential 

treatment. The data items collected on 

FR Y–9LP, FR Y–9ES, and FR Y–9CS 

reports, are also generally not accorded 

confidential treatment. As provided in 

the Board’s Rules Regarding Availability 

of Information (12 CFR part 261), 

however, a respondent may request 

confidential treatment for any data 

items the respondent believes should be 

withheld pursuant to a FOIA 

exemption. The Board will review any 

such request to determine if confidential 

treatment is appropriate, and will 

inform the respondent if the request for 

confidential treatment has been denied. 

To the extent that the instructions to 

the FR Y–9C, FR Y–9LP, FR Y–9SP, and 

FR Y–9ES reports each respectively 

direct a financial institution to retain 

the workpapers and related materials 

used in preparation of each report, such 

material would only be obtained by the 

Board as part of the examination or 

supervision of the financial institution. 

Accordingly, such information may be 

considered confidential pursuant to 

exemption 8 of the FOIA (5 U.S.C. 

552(b)(8)). In addition, the financial 

institution’s workpapers and related 

materials may also be protected by 

exemption 4 of the FOIA, to the extent 

such financial information is treated as 

confidential by the respondent (5 U.S.C. 

552(b)(4)). 

2. Report Title: Financial Statements of 

U.S. Nonbank Subsidiaries of U.S. 

Holding Companies and Abbreviated 

Financial Statements of U.S Nonbank 

Subsidiaries of U.S. Holding Companies 

Agency form number: FR Y–11 and 

FR Y–11S. 

OMB control number: 7100–0244. 

Effective date: December 2, 2020. 

Frequency: Quarterly and annually. 

Respondents: Domestic bank holding 

companies, savings and loan holding 

companies, securities holding 

companies, and intermediate holding 

companies. 

Estimated number of respondents: FR 

Y–11 (quarterly): 445; FR Y–11 

(annually): 189; FR Y–11S: 273. 

Estimated annual burden hours: FR 

Y–11 (quarterly): 13,528 hours; FR Y–11 

(annually): 1,436 hours; FR Y–11S: 273 

hours. 

General description of report: The FR 

Y–11 family of reports collects financial 

information for individual U.S. nonbank 

subsidiaries of domestic holding 

companies, which is essential for 

monitoring the subsidiaries’ potential 

impact on the condition of the holding 

company or its subsidiary banks. 

Holding companies file the FR Y–11 on 

a quarterly or annual basis or the FR Y– 

11S on an annual basis, predominantly 

based on whether the organization 

meets certain asset size thresholds. 

Legal authorization and 

confidentiality: The Board has the 

authority to require bank holding 

companies and any subsidiary thereof, 

savings and loan holding companies 

and any subsidiary thereof, and 

securities holding companies and any 

affiliate thereof to file the FR Y–11 

pursuant to, respectively, section 5(c) of 

the BHC Act (12 U.S.C. 1844(c)), section 

10(b) of the Homeowners’ Loan Act (12 

U.S.C. 1467a(b)), and section 618 of the 

Dodd-Frank Act (12 U.S.C. 1850a). 

Information collected in these reports 

generally is not considered confidential. 

However, because the information is 

collected as part of the Board’s 

supervisory process, certain information 

may be afforded confidential treatment 

pursuant to exemption 8 of the FOIA (5 

U.S.C. 552(b)(8)). Individual 

respondents may request that certain 

data be afforded confidential treatment 

pursuant to exemption 4 of the FOIA if 

the data has not previously been 

publically disclosed and the release of 

the data would likely cause substantial 

harm to the competitive position of the 

respondent (5 U.S.C. 552(b)(4)). 

Additionally, individual respondents 

may request that personally identifiable 

information be afforded confidential 

treatment pursuant to exemption 6 of 

the FOIA if the release of the 

information would constitute a clearly 

unwarranted invasion of personal 

privacy (5 U.S.C. 552(b)(6)). The 

applicability of the FOIA exemptions 4 

and 6 would be determined on a caseby-case basis. 

3. Report Title: The Financial 

Statements of U.S. Nonbank 

Subsidiaries Held by Foreign Banking 

Organizations, Abbreviated Financial 

Statements of U.S. Nonbank 

Subsidiaries Held by Foreign Banking 

Organizations, and the Capital and 

Asset Report of Foreign Banking 

Organizations 

Agency form number: FR Y–7N, FR 

Y–7NS, and FR Y–7Q. 

OMB control number: 7100–0125. 

Effective date: December 2, 2020. 

Frequency: Quarterly and annually. 

Respondents: Foreign banking 

organizations. 

Estimated number of respondents: FR 

Y–7N (quarterly): 35; FR Y–7N 

(annually): 19; FR Y–7NS: 22; FR Y–7Q 

(quarterly): 130; FR Y–7Q (annually): 

29. 

Estimated annual burden hours: FR 

Y–7N (quarterly): 1,064 hours; FR Y–7N 

(annually): 144 hours; FR Y–7NS: 22 

hours; FR Y–7Q (quarterly): 1,560 hours; 

FR Y–7Q (annually): 44 hours. 

General description of report: The FR 

Y–7N and the FR Y–7NS are used to 

assess a foreign banking organization’s 

ability to be a continuing source of 

strength to its U.S. nonbank operations 

and to determine compliance with U.S. 

77356 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 

laws and regulations. Foreign banking 

organizations file the FR Y–7N quarterly 

or annually, or the FR Y–7NS annually, 

predominantly based on asset size 

thresholds. The FR Y–7Q is used to 

assess consolidated regulatory capital 

and asset information from all foreign 

banking organizations. The FR Y–7Q is 

filed quarterly by foreign banking 

organizations that have effectively 

elected to become or be treated as a U.S. 

financial holding company and by 

foreign banking organizations that have 

total consolidated assets of $50 billion 

or more, regardless of financial holding 

company status. All other foreign 

banking organizations file the FR Y–7Q 

annually. 

Legal authorization and 

confidentiality: With respect to foreign 

banking organizations and their 

subsidiary intermediate holding 

companies, section 5(c) of the BHC Act, 

in conjunction with section 8 of the 

International Banking Act (12 U.S.C. 

3106), authorizes the board to require 

foreign banking organizations and any 

subsidiary thereof to file the FR Y–7N 

reports, and the FR Y–7Q. Information 

collected in these reports generally is 

not considered confidential. However, 

because the information is collected as 

part of the Board’s supervisory process, 

certain information may be afforded 

confidential treatment pursuant to 

exemption 8 of the FOIA (5 U.S.C. 

552(b)(8)). Individual respondents may 

request that certain data be afforded 

confidential treatment pursuant to 

exemption 4 of the FOIA if the data has 

not previously been publicly disclosed 

and the release of the data would likely 

cause substantial harm to the 

competitive position of the respondent 

(5 U.S.C. 552(b)(4)). Additionally, 

individual respondents may request that 

personally identifiable information be 

afforded confidential treatment 

pursuant to exemption 6 of the FOIA if 

the release of the information would 

constitute a clearly unwarranted 

invasion of personal privacy (5 U.S.C. 

552(b)(6)). The applicability of the FOIA 

exemptions 4 and 6 would be 

determined on a case-by-case basis. 

4. Report Title: Financial Statements of 

Foreign Subsidiaries of U.S. Banking 

Organizations and the Abbreviated 

Financial Statements of Foreign 

Subsidiaries of U.S. Banking 

Organizations 

Agency form number: FR 2314 and FR 

2314S. 

OMB control number: 7100–0073. 

Effective date: December 2, 2020. 

Frequency: Quarterly and annually. 

Respondents: U.S. state member 

banks, bank holding companies, savings 

and loan holding companies, 

intermediate holding companies, and 

Edge or agreement corporations. 

Estimated number of respondents: FR 

2314 (quarterly): 439; FR 2314 

(annually): 239; FR 2314S: 300. 

Estimated annual burden hours: FR 

2314 (quarterly): 12,643 hours; FR 2314 

(annually): 1,768 hours; FR 2314S: 300 

hours. 

General description of report: The FR 

2314 family of reports is the only source 

of comprehensive and systematic data 

on the assets, liabilities, and earnings of 

the foreign nonbank subsidiaries of U.S. 

banking organizations, and the data are 

used to monitor the growth, 

profitability, and activities of these 

foreign companies. The data help the 

Board identify present and potential 

problems of these companies, monitor 

their activities in specific countries, and 

develop a better understanding of 

activities within the industry and 

within specific institutions. Parent 

organizations (state member banks, Edge 

and agreement corporations, or holding 

companies) file the FR 2314 on a 

quarterly or annual basis, or the FR 

2314S on an annual basis, 

predominantly based on whether the 

organization meets certain asset size 

thresholds. 

Legal authorization and 

confidentiality: The Board has the 

authority to require bank holding 

companies and any subsidiary thereof, 

savings and loan holding companies 

and any subsidiary thereof, and 

securities holding companies and any 

affiliate thereof to file the FR 2314 

pursuant to, respectively, section 5(c) of 

the BHC Act (12 U.S.C. 1844(c)), section 

10(b) of the Homeowners’ Loan Act (12 

U.S.C. 1467a(b)), and section 618 of the 

Dodd-Frank Act (12 U.S.C. 1850a). The 

Board has the authority to require state 

member banks, agreement corporations, 

and Edge corporations to file the FR 

2314 pursuant to, respectively, sections 

9(6), 25(7), and 25A(17) of the Federal 

Reserve Act (12 U.S.C. 324, 602, and 

625). With respect to foreign banking 

organizations and their subsidiary 

intermediate holding companies, 

section 5(c) of the BHC Act, in 

conjunction with section 8 of the 

International Banking Act (12 U.S.C. 

3106), authorizes the board to require 

foreign banking organizations and any 

subsidiary thereof to file the FR 2314 

reports. These reports are mandatory. 

Information collected in these reports 

generally is not considered confidential. 

However, because the information is 

collected as part of the Board’s 

supervisory process, certain information 

may be afforded confidential treatment 

pursuant to exemption 8 of the FOIA (5 

U.S.C. 552(b)(8)). Individual 

respondents may request that certain 

data be afforded confidential treatment 

pursuant to exemption 4 of the FOIA if 

the data has not previously been 

publically disclosed and the release of 

the data would likely cause substantial 

harm to the competitive position of the 

respondent (5 U.S.C. 552(b)(4)). 

Additionally, individual respondents 

may request that personally identifiable 

information be afforded confidential 

treatment pursuant to exemption 6 of 

the FOIA if the release of the 

information would constitute a clearly 

unwarranted invasion of personal 

privacy (5 U.S.C. 552(b)(6)). The 

applicability of the FOIA exemptions 4 

and 6 would be determined on a caseby-case basis. 

Current actions: The interim final rule 

adjusts for community banking 

organizations the measurement dates for 

certain total asset thresholds that would 

otherwise trigger additional information 

collection requirements for the 

remainder of calendar years 2020 

through the end of 2021. The temporary 

relief applies only to filing requirements 

associated with asset-based reporting 

thresholds of $10 billion or less. Table 

1 of the interim final rule contains a 

summary of affected reports, reporting 

applicability for 2020–2021, and the 

dates for determining reporting 

requirements for 2022. 

To implement the interim final rule, 

the Board is temporarily revising the 

instructions for the following reports: 

FR Y–9C, FR Y–9LP, FR Y–11, FR Y– 

11S, FR Y–7N, FR Y–7NS, FR 2314, and 

FR 2314S. The revised instructions 

instruct community banking 

organizations to use the lesser of total 

assets as of December 31, 2019, or the 

most recent applicable measurement 

period to determine the applicability of 

asset-based filing thresholds for the 

remainder of calendar years 2020 

through the end of 2021. All reporting 

eligibility criteria for these information 

collections, besides the temporarily 

revised total assets measurement date, 

continue to apply. Financial institutions 

must revert back to normal rules for 

determining applicability of the 

reporting requirements in calendar year 

2022, as summarized in Table 1. 

The Board believes the changes to the 

measurement dates for the total asset 

thresholds used to determine additional 

reporting requirements will not result in 

a change in the burden estimates 

currently approved by OMB. Therefore, 

the burden estimates for these reports 

remain unchanged by the interim final 

rule. 

The FR Y–9C instructions currently 

contain filing thresholds of $5 billion 

Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 77357 

and $10 billion that trigger the reporting 

of additional schedules and the 

reporting of certain data items at a 

higher frequently. These thresholds 

would be impacted by the changes in 

the interim final rule. Whether 

additional FR Y–9C requirements apply 

would normally be based on total 

consolidated assets as of June 30 of the 

prior year. With the revisions in the 

interim final rule, community banking 

organizations may instead use the lesser 

of total consolidated assets as of 

December 31, 2019, or June 30, 2020, to 

determine whether additional filing 

requirements are applicable. 

Specifically, the additional filing 

requirements for the FR Y–9C that 

would otherwise be triggered by the $5 

billion and $10 billion threshold are as 

follows: 

• The $5 billion threshold requires 

these holding companies to report 

Schedule HI–C, Part I, Disaggregated 

Data on the Allowance for Loan and 

Lease Losses; Schedule HC–D, Trading 

Assets and Liabilities; Schedule HC–P, 

1–4 Family Residential Mortgage 

Banking Activities in Domestic Offices; 

Schedule HC–Q, Assets and Liabilities 

Measured at Fair Value; Schedule HC– 

S, Servicing, Securitization, and Asset 

Sale Activities; and Schedule HC–V, 

Variable Interest Entities. 

• The $5 billion threshold requires 

these holding companies to report 

Schedule HI item 1.e, interest income 

from trading assets; Schedule HI item 

2.c, interest on trading liabilities and 

other borrowed money; Schedule HI 

item 2.d, interest on subordinated notes 

and debentures and on mandatory 

convertible securities; Schedule HI item 

5.c, trading revenue; Schedule HI items 

5.d.(1) through 5.d.(5), related to various 

fees and commissions on securities 

brokerage investments, investment 

banking, and insurance; Schedule HI 

item 5.e, venture capital revenue; 

Schedule HI item 5.g, net securitization 

income; Schedule HI Memoranda item 

1, net interest income on a fully taxable 

equivalent basis; Schedule HI 

Memoranda item 2, net income before 

applicable income taxes, and 

discontinued operations; Schedule HI 

Memoranda items 8.a.(1) through 

8.b.(2), discontinued operations and 

applicable income tax effect; Schedule 

HI Memoranda items 9.a through 9.e, 

related to trading revenue; Schedule HI 

Memoranda item 11, credit losses on 

derivatives; Schedule HI Memoranda 

items 12.a through 12.c, detail 

pertaining to income from the sale and 

servicing of mutual funds and annuities 

(in domestic offices); Schedule HI 

Memoranda items 14.a. through 14.b.(1), 

related to net gains (losses) recognized 

in earnings on assets and liabilities that 

are reported at fair value under a fair 

value option; Schedule HI Memoranda 

item 15, stock-based employee 

compensation expense; Schedule HI–B, 

Part I, items 4.a and 4.b, columns A and 

B, commercial and industrial loans; 

Schedule HI–B, Part I, item 6, columns 

A and B, loans to foreign governments 

and official institutions; Schedule HI–B, 

Part I, items 8.a and 8.b, lease finance 

receivables; Schedule HI–B, Part I, 

Memoranda item 2, columns A and B, 

loans secured by real estate to non-U.S. 

addressees; Schedule HI–B, Part I, 

Memoranda item 3, uncollectible retail 

credit card fees and finance charges 

reversed against income; Schedule HI– 

B, Part II, Memoranda item 1, allocated 

transfer risk reserve; Schedule HI–B, 

Part II, Memoranda item 2, separate 

valuation allowance for uncollectible 

retail credit card fees and finance 

charges; Schedule HI–B, Part II, 

Memoranda item 3, allowance for loan 

and lease losses attributable to retail 

credit card fees and finance charges; 

Schedule HI–B, Part II, Memoranda item 

4, allowance for post-acquisition credit 

losses on purchased credit-impaired 

loans; Schedule HC–B, items 4.a.(1) 

through 4.a.(3), residential pass-through 

securities; Schedule HC–C, items 4.a 

and 4.b, commercial and industrial 

loans; Schedule HC–C, items 9.b.(1) 

through 9.b.(2), column A and B, loans 

for purchasing or carrying securities and 

all other loans; Schedule HC–C, items 

10.a and 10.b, column A, lease financing 

receivables; Schedule HC–C Memoranda 

items 1.e.(1) and 1.e.(2), commercial and 

industrial loans; Schedule HC–C 

Memoranda item 3, loans secured by 

real estate to non-U.S. addressees; 

Schedule HC–C Memoranda item 4, 

outstanding credit card fees and finance 

charges; Schedule HC–C Memoranda 

items 12.a through 12.d, loans and 

leases held for investment (not subject 

to the requirements of FASB ASC 310– 

30) that are acquired in business 

combinations with acquisition dates in 

the current calendar year; Schedule HC– 

K, item 4.a, trading assets; Schedule 

HC–L item 1.b.(1), unused consumer 

credit card lines; Schedule HC–L 1.b.(2), 

other unused credit card lines; Schedule 

HC–L item 1.d, securities underwriting; 

Schedule HC–L items 2.a and 3.a, 

financial and performance standby 

letters of credit conveyed to others; 

Schedule HC–L items 7.a through 

7.d.(2)(b), related to credit derivatives; 

Schedule HC–L items 11.a through 

14.b.(2), pertaining to derivatives 

positions; Schedule HC–M items 

6.a.(1)(a)(1) through 6.d, pertaining to 

assets covered by loss-sharing 

agreements with the Federal Deposit 

Insurance Corporation; Schedule HC–N, 

items 8.a and 8.b, columns A, B, and C; 

Schedule HC–N items 12.a.(1)(a) 

through 12.f, pertaining to loans and 

leases which are covered by loss-sharing 

agreements with the Federal Deposit 

Insurance Corporation; Schedule HC–N 

Memoranda items 1.e.(1) and 1.e.(2), 

columns A, B, and C, commercial and 

industrial loans; and Schedule HC–N 

Memoranda item 6, fair value of 

derivative contract amounts carried as 

assets. 

• The $5 billion threshold requires 

these holding companies to report 

quarterly rather than annual Schedule 

HI Memoranda items 6.a through 6.j, 

other noninterest income; Schedule HI 

Memoranda items 7.a through 7.p, other 

noninterest expense; and Schedule HI 

Memoranda 16, noncash income from 

negative amortization on closed-end 

loans secured by 1–4 family residential 

properties; and quarterly rather than 

semi-annual, Schedule HI Memoranda 

item 17, other-than-temporary 

impairment losses on held-to-maturity 

and available-for-sale debt securities 

recognized in earnings; Schedule HI–C, 

Part II, items 7 through 11, 

disaggregated data on the allowance for 

credit losses; Schedule HC–C 

Memoranda items 1.a.(1) through 

1.f.(3)(c), pertaining to loans 

restructured in troubled debt 

restructurings that are in compliance 

with their modified terms; Schedule 

HC–N Memoranda items 1.a.(1) through 

1.d.(2) and 1.e.(3) through 1.f.(3)(c), 

related to loans restructured in troubled 

debt restructurings that are in 

compliance with their modified terms; 

Schedule HC–R, Part II, items 1 through 

25, columns A through U, risk-weighted 

assets; Schedule HC–R, Part II 

Memoranda item 1, current credit 

exposure across all derivative contracts; 

Schedule HC–R, Part II Memoranda item 

2, columns A, B, and C, notional 

principal amounts of over-the-counter 

derivative contracts; and Schedule HC– 

R, Part II, Memoranda item 3, columns 

A, B, and C, notional principal amounts 

of centrally cleared derivatives 

contracts. 

• The $10 billion threshold requires 

these holding companies to report 

Schedule HI Memoranda items 10.a and 

10.b, related to net gains/losses on 

credit derivatives; Schedule HC–B 

Memoranda items 5.a through 5.f, 

related to asset-backed securities; 

Schedule HC–B Memoranda items 6.a 

through 6.g, related to structured 

financial products by underlying 

collateral or reference assets; Schedule 

HC–L item 15, pertaining to the 

additional information on over-theVerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 E:\FR\FM\02DER1.SGM 02DER1
77358 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 

34 5 U.S.C. 601 et seq. 

35Under 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 $600 

million or less and trust companies with total assets 

of $41.5 million or less. See 13 CFR 121.201. 

36 12 U.S.C. 4802(a). 

37 12 U.S.C. 4802. 

38Public Law 106–102, 113 Stat. 1338, 1471, 12 

U.S.C. 4809. 

counter derivatives; and Schedule HC– 

S items 6 and 10, and Schedule HC–S 

Memoranda item 3, related to 

securitization activity. Holding 

companies that cross the $10 billion 

threshold would be ineligible to opt-in 

into the community bank leverage ratio 

framework and would be required to file 

the additional Schedule HC–R, Part I 

and HC–R, Part II line items. 

The Board has determined that the 

temporary revisions to these collections 

of information must be instituted 

quickly and that public participation in 

the approval process would defeat the 

purpose of the collections. Delaying the 

revisions would cause public harm if 

firms were adversely affected due to 

participating in the PPP or had to bear 

temporary compliance costs. 

In addition, the Board proposes to 

extend the collections of information for 

three years with the revisions discussed 

above. 

D. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(RFA) 34 requires an agency to consider 

whether the rules it proposes will have 

a significant economic impact on a 

substantial number of small entities.35

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). 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 analysis do not 

apply. 

Nevertheless, the agencies seek 

comment on whether, and the extent to 

which, the interim final rule would 

affect a significant number of small 

entities. 

E. 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) 36 requires that each Federal 

banking agency, in determining the 

effective date and administrative 

compliance requirements for new 

regulations that impose additional 

reporting, disclosure, or other 

requirements on insured depository 

institutions, each federal banking 

agency must consider, consistent with 

principles of safety and soundness and 

the public interest, any administrative 

burdens that 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 insured 

depository institutions 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.37 The agencies have 

determined that the final rule would not 

impose additional reporting, disclosure, 

or other requirements; therefore, the 

requirements of the RCDRIA do not 

apply. 

F. Unfunded Mandates Reform Act of 

1995 

As a general matter, the Unfunded 

Mandates Reform Act of 1995 (UMRA), 

2 U.S.C. 1531 et seq., requires the 

preparation of 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 in any one year. 

However, the UMRA does not apply to 

final rules for which a general notice of 

proposed rulemaking was not 

published. See 2 U.S.C. 1532(a). 

Therefore, because the OCC has found 

good cause to dispense with notice and 

comment for this interim final rule, the 

OCC has not prepared an economic 

analysis of the rule under the UMRA. 

G. Use of Plain Language 

Section 722 of the Gramm-LeachBliley Act 38 requires the Federal 

banking agencies to use plain language 

in all proposed and final rules 

published after January 1, 2000. In light 

of this requirement, the agencies have 

sought to present the interim final rule 

in a simple and straightforward manner 

and invite comment on the use of plain 

language. For example: 

• Is the material organized to suit 

your needs? If not, how could the 

agencies present the interim final rule 

more clearly? 

• Are the requirements in the interim 

final rule clearly stated? If not, how 

could the interim final rule be more 

clearly stated? 

• Does the interim final rule contain 

technical language or jargon that is not 

clear? If so, which language requires 

clarification? 

• Would a different format (grouping 

and order of sections, use of headings, 

paragraphing) make the interim final 

rule easier to understand? If so, what 

changes would achieve that? 

• Is this section format adequate? If 

not, which of the sections should be 

changed and how? 

• What other changes can the 

agencies incorporate to make the 

interim final rule easier to understand? 

List of Subjects 

12 CFR Part 3 

Administrative practice and 

procedure, Capital, Federal savings 

associations, National banks, Risk. 

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 52 

Banks, Banking, Reporting and 

recordkeeping requirements. 

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. 

12 CFR Part 212 

Antitrust, Banks, Banking, Holding 

companies. 

12 CFR Part 217 

Administrative practice and 

procedure, Banks, Banking, Federal 

Reserve System, Holding companies, 

Investments, National banks, Reporting 

and recordkeeping requirements, 

Securities. 

12 CFR Part 225 

Administrative practice and 

procedure, Banks, Banking, Capital 

planning, Holding companies, Reporting 

and recordkeeping requirements, 

Securities, Stress testing. 

Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 77359 

12 CFR Part 235 

Accounting, Banks, Banking. 

12 CFR Part 238 

Administrative practice and 

procedure, Banks, Banking, Federal 

Reserve System, Reporting and 

recordkeeping requirements, Securities. 

12 CFR Part 304 

Bank deposit insurance, Banks, 

Banking, Freedom of information, 

Reporting and recordkeeping 

requirements. 

12 CFR Part 324 

Administrative practice and 

procedure, Banks, Banking, Capital, 

Capital adequacy, Reporting and 

recordkeeping requirements, State nonmember banks, Savings associations. 

12 CFR Part 337 

Banks, Banking, Reporting and 

recordkeeping requirements, Savings 

associations. 

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. 

12 CFR Part 348 

Antitrust, Banks, Banking, Holding 

companies, Savings associations. 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Chapter I 

Authority and Issuance 

For the reasons stated in the joint 

preamble, the Office of the Comptroller 

of the Currency amends chapter I of 

Title 12 of the Code of Federal 

Regulations as follows: 

PART 3—CAPITAL ADEQUACY 

STANDARDS 

■ 1. The authority citation for part 3 

continues to read as follows: 

Authority: 12 U.S.C. 93a, 161, 1462, 

1462a, 1463, 1464, 1818, 1828(n), 1828 note, 

1831n note, 1835, 3907, 3909, 5412(b)(2)(B), 

and Pub. L. 116–136, 134 Stat. 281. 

■ 2. Section 3.12 is amended by adding 

paragraph (a)(4) to read as follows: 

§ 3.12 Community bank leverage ratio 

framework. 

(a) * * * 

(4)(i) Temporary relief. From 

December 2, 2020 through December 31, 

2021, except as provided in paragraph 

(a)(4)(ii) of this section, the total 

consolidated assets of a national bank or 

Federal savings association for purposes 

of paragraph (a)(2)(ii) of this section 

shall be the lesser of: 

(A) The total consolidated assets 

reported by the national bank or Federal 

savings association in its Call Report as 

of December 31, 2019; and 

(B) The total consolidated assets of 

the national bank or Federal savings 

association calculated in accordance 

with the reporting instructions to the 

Call Report as of the end of the most 

recent calendar quarter. 

(ii) Reservation of authority. The 

temporary relief provided under 

paragraph (a)(4)(i) of this section does 

not apply to a national bank or Federal 

savings association if the OCC 

determines that permitting the 

institution to determine its assets in 

accordance with that paragraph would 

not be commensurate with the risk 

posed by the institution. When making 

this determination, the OCC will 

consider all relevant factors, including 

the extent of asset growth of the national 

bank or Federal savings association 

since December 31, 2019; the causes of 

this growth, including whether this 

growth occurred as a result of a merger 

or acquisition; whether such growth is 

likely to be temporary or permanent; 

whether the national bank or Federal 

savings association has become 

involved in any additional activities 

since December 31, 2019; and the type 

of assets held by the national bank or 

Federal savings association. The OCC 

will notify a national bank or Federal 

savings association of a determination 

under this paragraph. A national bank 

or Federal savings association may, not 

later than 30 days after the date of a 

determination by the OCC, inform the 

OCC, in writing, of why the national 

bank or Federal savings association 

should be eligible for the temporary 

relief. The OCC will make a final 

determination after reviewing any 

response. 

* * * * * 

PART 4—ORGANIZATION AND 

FUNCTIONS, AVAILABILITY AND 

RELEASE OF INFORMATION, 

CONTRACTING OUTREACH 

PROGRAM, POST-EMPLOYMENT 

RESTRICTIONS FOR SENIOR 

EXAMINERS 

SUBPART A—Organization and 

Functions 

■ 3. 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). 

■ 4. Section 4.6 is amended by adding 

paragraph (d) to read as follows: 

§ 4.6 Frequency of examination of national 

banks and Federal savings associations. 

* * * * * 

(d) Through December 31, 2021, for 

purposes of determining eligibility for 

the 18-month rule described in 

paragraph (b) of this section, the OCC 

may determine the total assets of a 

national bank or Federal savings 

association by reference to the total 

assets of the national bank or Federal 

savings association as reported by the 

national bank or Federal savings 

association in its Call Report as of 

December 31, 2019. 

■ 5. Section 4.7 is amended by adding 

paragraph (d) to read as follows: 

§ 4.7 Frequency of examination of Federal 

agencies and branches. 

* * * * * 

(d) Through December 31, 2021, for 

purposes of determining eligibility for 

the 18-month rule described in 

paragraph (b) of this section, the OCC 

may determine total assets of a Federal 

branch or agency by reference to the 

total assets of the Federal branch or 

agency as reported by the Federal 

branch or agency as of December 31, 

2019. 

PART 52—REGULATORY REPORTING 

■ 6. The authority citation for part 52 

continues to read as follows: 

Authority: 12 U.S.C. 93a, 161, 1463(a), 

1464(v), and 1817(a)(12). 

■ 7. Add § 52.5 to read as follows: 

§ 52.5 Temporary relief. 

In determining whether it meets the 

asset threshold in paragraph (1) of the 

definition of ‘‘covered depository 

institution’’ in § 52.5 of this part, for 

purposes of a report required to be 

submitted for calendar year 2021, a 

national bank, Federal savings 

association, or insured Federal branch 

may refer to the lesser of its total 

consolidated assets as reported in its 

report of condition as of December 31, 

2019, and its total consolidated assets as 

reported in its report of condition for 

the second calendar quarter of 2020. 

77360 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 

Board of Governors of the Federal 

Reserve System 

12 CFR Chapter I 

Authority and Issuance 

For the reasons stated in the joint 

preamble, chapter II of title 12 of the 

Code of Federal Regulations is amended 

as follows: 

PART 208—MEMBERSHIP OF STATE 

BANKING INSTITUTIONS IN THE 

FEDERAL RESERVE SYSTEM 

(REGULATION H) 

■ 8. 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. 

Subpart C—Bank Securities and 

Securities-Related Activities 

■ 9. Amend § 208.36 by adding 

paragraph (b)(3) to read as follows: 

§ 208.37 Reporting requirements for State 

member banks subject to the Securities 

Exchange Act of 1934. 

* * * * * 

(b) * * * 

(3) Notwithstanding paragraph (b)(1) 

of this section, a member bank may, 

from December 2, 2020, through 

December 31, 2021, make the election 

described in paragraph (b)(1) of this 

section if it has no foreign offices and 

had total assets of $150 million or less, 

determined based on the lesser of total 

assets as of December 31, 2019, and total 

assets as of the end of the bank’s most 

recent fiscal year. The relief provided 

under this paragraph (b)(3) of this 

section does not apply to a member 

bank if the Board determines that 

permitting the member bank to 

determine its assets in accordance with 

that paragraph would not be 

commensurate with the risk profile of 

the member bank. When making this 

determination, the Board will consider 

all relevant factors, including the extent 

of asset growth of the member bank 

since December 31, 2019; the causes of 

such growth, including whether growth 

occurred as a result of mergers or 

acquisitions; whether such growth is 

likely to be temporary or permanent; 

whether the member bank has become 

involved in any additional activities 

since December 31, 2019; the asset size 

of any parent companies; and the type 

of assets held by the member bank. In 

making a determination pursuant to this 

paragraph (b)(3), the Board will apply 

notice and response procedures in the 

same manner and to the same extent as 

the notice and response procedures in 

12 CFR 263.202. 

* * * * * 

Subpart D—Miscellaneous 

Requirements 

■ 10. Amend § 208.64 by adding 

paragraph (d) to read as follows: 

§ 208.64 Frequency of examination. 

* * * * * 

(d)(1) Except as provided in paragraph 

(c) of this section, from December 2, 

2020, through December 31, 2021, for 

purposes of determining eligibility for 

the extended examination cycle 

described in paragraph (b) of this 

section, the total assets of a member 

bank shall be determined based on the 

lesser of: 

(i) The assets of the member bank as 

of December 31, 2019; and 

(ii) The assets of the member bank as 

of the end of the most recent calendar 

quarter. 

(2) Nothing in paragraph (d)(1) of this 

section limits the authority of the 

Federal Reserve to examine any member 

bank as frequently as the agency deems 

necessary pursuant to paragraph (c) of 

this section. 

* * * * * 

Subpart K—Forms, Instructions and 

Reports 

■ 11. Amend § 208.121 by revising the 

definition of ‘‘Covered depository 

institution’’ to read as follows: 

§ 208.121 Definitions. 

* * * * * 

Covered depository institution means 

a state member bank that meets all of 

the following criteria: 

(1) Has less than $5 billion in total 

consolidated assets as reported in its 

report of condition for the second 

calendar quarter of the preceding year, 

except that, during the calendar year 

2021, a state member bank shall 

determine whether it meets the 

requirement in paragraph (1) of this 

section by using the lesser of its total 

consolidated assets as reported in its 

report of condition as of December 31, 

2019, and its total consolidated assets as 

reported in its report of condition for 

the second calendar quarter of 2020. 

The relief provided under this 

paragraph (1) of this section does not 

apply to a state member bank if the 

Board determines that permitting the 

state member bank to determine its 

assets in accordance with that paragraph 

would not be commensurate with the 

risk profile of the state member bank. 

When making this determination, the 

Board will consider all relevant factors, 

including the extent of asset growth of 

the state member bank since December 

31, 2019; the causes of such growth, 

including whether growth occurred as a 

result of mergers or acquisitions; 

whether such growth is likely to be 

temporary or permanent; whether the 

state member bank has become involved 

in any additional activities since 

December 31, 2019; the asset size of any 

parent companies; and the type of assets 

held by the state member bank. In 

making a determination pursuant to this 

paragraph (1), the Board will apply 

notice and response procedures in the 

same manner and to the same extent as 

the notice and response procedures in 

12 CFR 263.202. 

(2) Has no foreign offices, as defined 

in this section; 

(3) Is not required to or has not 

elected to use 12 CFR part 217, subpart 

E, to calculate its risk-based capital 

requirements; and 

(4) Is not a large institution or highly 

complex institution, as such terms are 

defined in 12 CFR 327.8, or treated as 

a large institution, as requested under 

12 CFR 327.16(f). 

* * * * * 

PART 211—INTERNATIONAL 

BANKING OPERATIONS 

(REGULATION K) 

■ 12. 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. 

Subpart B—Foreign Banking 

Organizations 

■ 13. Amend § 211.26 by adding 

paragraph (c)(2)(iii) to read as follows: 

§ 211.26 Examination of offices and 

affiliates of foreign banks. 

* * * * * 

(c) * * * 

(2) * * * 

(iii)(A) Except as provided in 

paragraph (c)(2)(iii)(B) of this section, 

from December 2, 2020 through 

December 31, 2021, for purposes of 

determining eligibility for the extended 

examination cycle described in 

paragraph (c)(2) of this section, the total 

assets of a branch or agency shall be 

determined based on the lesser of: 

Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 77361 

(1) The total assets of the branch or 

agency as of December 31, 2019; and 

(2) The total assets of the branch or 

agency as of the end of the most recent 

calendar quarter. 

(B) The relief provided under 

paragraph (c)(2)(iii)(A) of this section 

does not apply to a branch or agency if 

the Board determines that permitting 

the branch or agency to determine its 

assets in accordance with that paragraph 

would not be commensurate with the 

risk profile of the branch or agency. 

When making this determination, the 

Board will consider all relevant factors, 

including the extent of asset growth of 

the branch or agency since December 

31, 2019; the causes of such growth, 

including whether growth occurred as a 

result of mergers or acquisitions; 

whether such growth is likely to be 

temporary or permanent; whether the 

branch or agency has become involved 

in any additional activities since 

December 31, 2019; the asset size of any 

parent companies; and the type of assets 

held by the branch or agency. In making 

a determination pursuant to this 

paragraph (c)(2)(iii)(B), the Board will 

apply notice and response procedures in 

the same manner and to the same extent 

as the notice and response procedures 

in 12 CFR 263.202. 

* * * * * 

PART 212—MANAGEMENT OFFICIAL 

INTERLOCKS 

■ 14. The authority citation for part 212 

continues to read as follows: 

Authority: 12 U.S.C. 3201–3208; 15 U.S.C. 

19. 

■ 15. Amend § 212.2 by adding 

paragraph (o)(3) to read as follows: 

§ 212.2 Definitions. 

* * * * * 

(o) * * * 

(3)(i) Notwithstanding paragraph 

(o)(1) of this section, and except as 

provided in paragraph (o)(3)(ii) of this 

section, from December 2, 2020, through 

December 31, 2021, the term total 

assets, with respect to a depository 

organization, means the lesser of assets 

of the depository organization reported 

on a consolidated basis as of December 

31, 2019, and assets reported as of the 

end of the depository organization’s 

most recent fiscal year on a consolidated 

basis as of December 31, 2020. 

(ii) The relief provided under 

paragraph (o)(3)(i) of this section does 

not apply to a depository organization if 

the Board determines that permitting 

the depository organization to 

determine its assets in accordance with 

that paragraph would not be 

commensurate with the risk profile of 

the depository organization. When 

making this determination, the Board 

will consider all relevant factors, 

including the extent of asset growth of 

the depository organization since 

December 31, 2019; the causes of such 

growth, including whether growth 

occurred as a result of mergers or 

acquisitions; whether such growth is 

likely to be temporary or permanent; 

whether the depository organization has 

become involved in any additional 

activities since December 31, 2019; the 

asset size of any parent companies; and 

the type of assets held by the depository 

organization. In making a determination 

pursuant to this paragraph (o)(3)(ii), the 

Board will apply notice and response 

procedures in the same manner and to 

the same extent as the notice and 

response procedures in 12 CFR 263.202. 

* * * * * 

PART 217—CAPITAL ADEQUACY OF 

BANK HOLDING COMPANIES, 

SAVINGS AND LOAN HOLDING 

COMPANIES, AND STATE MEMBER 

BANKS (REGULATION Q) 

■ 16. The authority citation for part 217 

continues to read as follows: 

Authority: 12 U.S.C. 248(a), 321–338a, 

481–486, 1462a, 1467a, 1818, 1828, 1831n, 

1831o, 1831p–1, 1831w, 1835, 1844(b), 1851, 

3904, 3906–3909, 4808, 5365, 5368, 5371, 

5371 note, and sec. 4012, Pub. L. 116–136, 

134 Stat. 281. 

Subpart B—Capital Ratio 

Requirements and Buffers 

■ 17. Amend § 217.12 by adding 

paragraph (a)(4) to read as follows: 

§ 217.12 Community bank leverage ratio 

framework. 

(a) * * * 

(4) Temporary relief for 2020 and 

2021. (i) Except as provided in 

paragraph (a)(4)(ii) of this section, from 

December 2, 2020, through December 

31, 2021, for purposes of determining 

whether a Board-regulated institution 

satisfies the criterion in paragraph 

(a)(2)(ii) of this section, the total 

consolidated assets of a Board-regulated 

institution for purposes of paragraph 

(a)(2)(ii) of this section shall be 

determined based on the lesser of: 

(A) The total consolidated assets 

reported by the institution in the Call 

Report, FR Y–9C, or FR Y–9SP, as 

applicable, as of December 31, 2019; 

and 

(B) The total consolidated assets 

calculated in accordance with the 

reporting instructions to the Call Report 

or to Form FR Y–9C, as applicable, as 

of the end of the most recent calendar 

quarter. 

(ii) The relief provided under this 

paragraph (a)(4)(i) does not apply to a 

Board-regulated institution if the Board 

determines that permitting the Boardregulated institution to determine its 

assets in accordance with that paragraph 

would not be commensurate with the 

risk profile of the Board-regulated 

institution. When making this 

determination, the Board will consider 

all relevant factors, including the extent 

of asset growth of the Board-regulated 

institution since December 31, 2019; the 

causes of such growth, including 

whether growth occurred as a result of 

mergers or acquisitions; whether such 

growth is likely to be temporary or 

permanent; whether the Board-regulated 

institution has become involved in any 

additional activities since December 31, 

2019; the asset size of any parent 

companies; and the type of assets held 

by the Board-regulated institution. In 

making a determination pursuant to this 

paragraph (a)(4)(ii), the Board will apply 

notice and response procedures in the 

same manner and to the same extent as 

the notice and response procedures in 

12 CFR 263.202. 

* * * * * 

PART 225—BANK HOLDING 

COMPANIES AND CHANGE IN BANK 

CONTROL (REGULATION Y) 

■ 18. The authority citation for part 225 

continues to read as follows: 

Authority: 12 U.S.C. 1817(j)(13), 1818, 

1828(o), 1831i, 1831p–1, 1843(c)(8), 1844(b), 

1972(1), 3106, 3108, 3310, 3331–3351, 3906, 

3907, and 3909; 15 U.S.C. 1681s, 1681w, 

6801 and 6805. 

Subpart A—General Provisions 

■ 19. Add § 225.10 to subpart A to read 

as follows: 

§ 225.10 Temporary relief for 2020 and 

2021. 

(a) Except as provided in paragraph 

(c) of this section and subject to the 

provisions of paragraph (d) of this 

section, from December 2, 2020, through 

December 31, 2021, the consolidated 

assets, consolidated risk-weighted 

assets, total consolidated assets, and 

total assets of a bank holding company 

for purposes of §§ 225.4(b)(2)(iii)(A) and 

(B), 225.14(a)(1)(v)(A)(1) and (2), 

225.14(a)(1)(vi), 225.23(a)(1)(iii)(A)(1) 

and (2), 225.24(a)(2)(iv) and (v), and 

225.28(b)(11)(vi) shall be determined 

based on the lesser of each such amount 

as of December 31, 2019, and as of the 

otherwise applicable asset measurement 

date of the relevant paragraph. 

77362 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 

(b) Except as provided in paragraph 

(c) of this section and subject to the 

provisions of paragraph (d) of this 

section, from December 2, 2020, through 

December 31, 2021, for purposes of 

determining the applicability of 

§§ 224.14(c)(6)(ii), 225.17(a)(6), and 

225.23(c)(5)(ii) of this part and appendix 

C to this part, the pro forma 

consolidated assets of a bank holding 

company and the consolidated riskweighted assets of a bank holding 

company immediately following 

consummation of a transaction each 

shall be calculated as the lesser of: 

(1) Such amount calculated as the 

sum of the assets of each company 

involved in the proposed business 

combination, as well as any company 

with which any such company has 

combined since December 31, 2019, as 

of December 31, 2019; and 

(2) Such amount calculated as the 

sum of the assets of each company 

involved in the proposed business 

combination as of the end of the most 

recent calendar quarter. 

(c) The relief provided under 

paragraphs (a) and (b) of this section 

does not apply to a bank holding 

company if the Board determines that 

permitting the bank holding company to 

determine its assets in accordance with 

that paragraph would not be 

commensurate with the risk profile of 

the bank holding company. When 

making this determination, the Board 

will consider all relevant factors, 

including the extent of asset growth of 

the bank holding company since 

December 31, 2019; the causes of such 

growth, including whether growth 

occurred as a result of mergers or 

acquisitions; whether such growth is 

likely to be temporary or permanent; 

whether the bank holding company has 

become involved in any additional 

activities since December 31, 2019; the 

asset size of any parent companies; and 

the type of assets held by the bank 

holding company. In making a 

determination pursuant to this section, 

the Board will apply notice and 

response procedures in the same 

manner and to the same extent as the 

notice and response procedures in 12 

CFR 263.202. 

(d) Nothing in this section limits the 

discretion of the Board or its delegatee 

to disallow the use of any expedited 

action process, require the submission 

of additional information in connection 

with a notice or application, or consider 

the ability of a bank holding company 

filing a notice or application under this 

part to comply with any statutory or 

regulatory requirements that may be 

applicable to the bank holding company 

upon expiration of the relief provided 

by this section. 

PART 235—DEBIT CARD 

INTERCHANGE FEES AND ROUTING 

(REGULATION II) 

■ 20. The authority citation for part 235 

continues to read as follows: 

Authority: 15 U.S.C. 1693o–2. 

■ 21. The heading for part 235 is revised 

to read as set forth above. 

■ 22. Amend § 235.5 by adding 

paragraph (a)(4) to read as follows: 

§ 235.5 Exemptions. 

* * * * * 

(a) * * * 

(4)(i) Temporary relief for 2020 and 

2021. Except as provided in paragraph 

(a)(4)(ii) of this section, for purposes of 

determining eligibility for the 

exemption for small issuers described in 

paragraph (a)(1) of this section, issuer 

asset size that is calculated as of the end 

of the calendar year 2020 shall be 

determined based on the lesser of: 

(A) The assets of the issuer, together 

with its affiliates, as of the end of the 

calendar year 2019; and 

(B) The assets of the issuer, together 

with its affiliates, as of the end of the 

calendar year 2020. 

(ii) The relief provided under this 

paragraph (a)(4) does not apply to an 

issuer if the Board determines that 

permitting the issuer to determine its 

assets in accordance with that paragraph 

would not be commensurate with the 

asset profile of the issuer. When making 

this determination, the Board will 

consider all relevant factors, including 

the extent of asset growth of the issuer 

since December 31, 2019; the causes of 

such growth, including whether growth 

occurred as a result of mergers or 

acquisitions; whether such growth is 

likely to be temporary or permanent; 

whether the issuer has become involved 

in any additional activities since 

December 31, 2019; the asset size of any 

parent companies; and the type of assets 

held by the issuer. In making a 

determination pursuant to this 

paragraph (a)(4)(ii), the Board will apply 

notice and response procedures in the 

same manner and to the same extent as 

the notice and response procedures in 

12 CFR 263.202. 

* * * * * 

PART 238—SAVINGS AND LOAN 

HOLDING COMPANIES (REGULATION 

LL) 

■ 23. The authority citation for part 238 

continues to read as follows: 

Authority: 5 U.S.C. 552, 559; 12 U.S.C. 

1462, 1462a, 1463, 1464, 1467, 1467a, 1468, 

5365; 1813, 1817, 1829e, 1831i, 1972, 15 

U.S.C. 78l. 

Subpart A—General Provisions 

■ 24. Amend § 238.5 by revising 

paragraph (b) to read as follows: 

§ 238.5 Audit of savings association 

holding companies. 

* * * * * 

(b) Audits required for safety and 

soundness purposes. (1) The Board 

requires an independent audit for safety 

and soundness purposes if, as of the 

beginning of its fiscal year, a savings 

and loan holding company controls 

savings association subsidiary(ies) with 

aggregate consolidated assets of $500 

million or more. 

(2) Except as provided in paragraph 

(b)(3) of this section, with regard to a 

savings and loan holding company’s 

fiscal year beginning in the calendar 

years 2020 or 2021, the applicability of 

the requirement in paragraph (b)(1) of 

this section shall be determined based 

on the lesser of: 

(i) The aggregate consolidated assets 

of the savings and loan holding 

company as of December 31, 2019; and 

(ii) The aggregate consolidated assets 

of the savings and loan holding 

company as of the end of its fiscal year 

ending in calendar year 2020. 

(3) The relief provided under 

paragraph (b)(2) of this section does not 

apply to a savings and loan holding 

company if the Board determines that 

permitting the savings and loan holding 

company to determine its assets in 

accordance with that paragraph would 

not be commensurate with the risk 

profile of the savings and loan holding 

company. When making this 

determination, the Board will consider 

all relevant factors, including the extent 

of asset growth of the savings and loan 

holding company since December 31, 

2019; the causes of such growth, 

including whether growth occurred as a 

result of mergers or acquisitions; 

whether such growth is likely to be 

temporary or permanent; whether the 

savings and loan holding company has 

become involved in any additional 

activities since December 31, 2019; the 

asset size of any parent companies; and 

the type of assets held by the savings 

and loan holding company. In making a 

determination pursuant to this 

paragraph (b)(3), the Board will apply 

notice and response procedures in the 

same manner and to the same extent as 

the notice and response procedures in 

12 CFR 263.202. 

* * * * * 

Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 77363 

Subpart F—Savings and Loan Holding 

Company Activities and Acquisitions 

■ 25. Amend § 238.53 by adding 

paragraph (c)(3) to read as follows: 

§ 238.53 Prescribed services and activities 

of savings and loan holding companies. 

* * * * * 

(c) * * * 

(3)(i) Except as provided in paragraph 

(c)(3)(ii) of this section, from December 

2, 2020, until December 31, 2021, the 

determination of whether a savings and 

loan holding company must comply 

with the filing requirements in 

paragraph (c)(2)(iii) or (iv) of this 

section shall be made based on the 

lesser of: 

(A) The consolidated assets of the 

savings and loan holding company as of 

December 31, 2019; and 

(B) The consolidated assets of the 

savings and loan holding company as of 

the end of the most recent calendar 

quarter. 

(ii) The relief provided under 

paragraph (c)(3)(i) of this section does 

not apply to a savings and loan holding 

company if the Board determines that 

permitting the savings and loan holding 

company to determine its assets in 

accordance with that paragraph would 

not be commensurate with the risk 

profile of the savings and loan holding 

company. When making this 

determination, the Board will consider 

all relevant factors, including the extent 

of asset growth of the savings and loan 

holding company since December 31, 

2019; the causes of such growth, 

including whether growth occurred as a 

result of mergers or acquisitions; 

whether such growth is likely to be 

temporary or permanent; whether the 

savings and loan holding company has 

become involved in any additional 

activities since December 31, 2019; the 

asset size of any parent companies; and 

the type of assets held by the savings 

and loan holding company. In making a 

determination pursuant to this 

paragraph (c)(3)(ii), the Board will apply 

notice and response procedures in the 

same manner and to the same extent as 

the notice and response procedures in 

12 CFR 263.202. 

* * * * * 

Subpart J—Management Official 

Interlocks 

■ 26. Amend § 238.92 by adding 

paragraph (p)(3) to read as follows: 

§ 238.92 Definitions. 

* * * * * 

(p) * * * 

(3) Temporary relief for 2020 and 

2021. Notwithstanding paragraph (p)(1) 

of this section, from December 2, 2020, 

through December 31, 2021, for 

purposes of this subpart J, the term total 

assets, with respect to a depository 

organization, means the lesser of assets 

of the depository organization reported 

on a consolidated basis as of December 

31, 2019, and assets reported on a 

consolidated basis as of the end of the 

most recent fiscal year. The relief 

provided under this paragraph (p)(3) 

does not apply to a depository 

organization if the Board determines 

that permitting the depository 

organization to determine its assets in 

accordance with that paragraph would 

not be commensurate with the risk 

profile of the depository organization. 

When making this determination, the 

Board will consider all relevant factors, 

including the extent of asset growth of 

the depository organization since 

December 31, 2019; the causes of such 

growth, including whether growth 

occurred as a result of mergers or 

acquisitions; whether such growth is 

likely to be temporary or permanent; 

whether the depository organization has 

become involved in any additional 

activities since December 31, 2019; the 

asset size of any parent companies; and 

the type of assets held by the depository 

organization. In making a determination 

pursuant to this paragraph (p)(3), the 

Board will apply notice and response 

procedures in the same manner and to 

the same extent as the notice and 

response procedures in 12 CFR 263.202. 

* * * * * 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Chapter III 

Authority and Issuance 

For the reasons stated in the 

preamble, the Federal Deposit Insurance 

Corporation amends chapter III of Title 

12, Code of Federal Regulations as 

follows: 

PART 304—FORMS, INSTRUCTIONS, 

AND REPORTS 

■ 27. The authority citation for part 304 

continues to read as follows: 

Authority: 12 U.S.C. 1464(v), 1817(a), and 

1819 Tenth. 

■ 28. Amend § 304.12 by adding 

paragraph (a)(6) to read as follows: 

§ 304.12 Definitions. 

(a) * * * 

(6) In determining whether an insured 

depository institution meets the asset 

threshold in paragraph (1) of the 

definition of ‘‘covered depository 

institution’’ in paragraph (a)(1) of this 

section, for purposes of a report 

required to be submitted for calendar 

year 2021, an insured depository 

institution may refer to the lesser of its 

total consolidated assets as reported in 

its report of condition as of December 

31, 2019, and its total consolidated 

assets as reported in its report of 

condition for the second calendar 

quarter of 2020. 

PART 324—CAPITAL ADEQUACY OF 

FDIC-SUPERVISED INSTITUTIONS 

■ 29. The authority citation for part 324 

is revised to read as follows: 

Authority: 12 U.S.C. 1815(a), 1815(b), 

1816, 1818(a), 1818(b), 1818(c), 1818(t), 

1819(Tenth), 1828(c), 1828(d), 1828(i), 

1828(n), 1828(o), 1831o, 1835, 3907, 3909, 

4808; 5371; 5412; Pub. L. 102–233, 105 Stat. 

1761, 1789, 1790 (12 U.S.C. 1831n note); Pub. 

L. 102–242, 105 Stat. 2236, 2355, as amended 

by Pub. L. 103–325, 108 Stat. 2160, 2233 (12 

U.S.C. 1828 note); Pub. L. 102–242, 105 Stat. 

2236, 2386, as amended by Pub. L. 102–550, 

106 Stat. 3672, 4089 (12 U.S.C. 1828 note); 

Pub. L. 111–203, 124 Stat. 1376, 1887 (15 

U.S.C. 78o–7 note), Pub. L. 115–174; section 

4014 § 201, Pub. L. 116–136, 134 Stat. 281 

(15 U.S.C. 9052). 

■ 30. Amend § 324.12 by adding 

paragraph (a)(4) to read as follows: 

§ 324.12 Community bank leverage ratio 

framework. 

(a) * * * 

(4)(i) Temporary relief—From 

December 2, 2020 through December 31, 

2021, for purposes of determining 

whether an FDIC-supervised institution 

satisfies the criterion in paragraph 

(a)(2)(ii) of this section, except as 

provided in paragraph (a)(4)(ii) of this 

section, the total consolidated assets of 

an FDIC-supervised institution for 

purposes of paragraph (a)(2)(ii) of this 

section shall be determined based on 

the lesser of: 

(A) The total consolidated assets 

reported by the institution in the Call 

Report as of December 31, 2019; and 

(B) The total consolidated assets 

calculated in accordance with the 

reporting instructions to the Call Report 

as of the end of the most recent calendar 

quarter. 

(ii) Reservation of authority—The 

temporary relief provided under this 

paragraph (a)(4)(i) of this section does 

not apply to an FDIC-supervised 

institution if the FDIC determines that 

permitting the FDIC-supervised 

institution to determine its assets in 

accordance with that paragraph would 

not be commensurate with the risk 

posed by the institution. When making 

this determination, the FDIC will 

consider all relevant factors, including 

the extent of asset growth of the FDICsupervised institution since December 

77364 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations 

31, 2019; the causes of such growth, 

including whether growth occurred as a 

result of mergers or acquisitions; 

whether such growth is likely to be 

temporary or permanent; whether the 

FDIC-supervised institution has become 

involved in any additional activities 

since December 31, 2019; and the type 

of assets held by the FDIC-supervised 

institution. The FDIC will notify an 

FDIC-supervised institution of a 

determination under this paragraph. An 

FDIC-supervised institution may, not 

later than 30 days after the date of a 

determination by the FDIC, inform the 

FDIC, in writing, of why the FDICsupervised institution should be eligible 

for the temporary relief. The FDIC will 

make a final determination after 

reviewing any response. 

* * * * * 

PART 337—UNSAFE AND UNSOUND 

BANK PRACTICES 

■ 31. 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. 

■ 32. Amend § 337.12 by adding 

paragraph (d) to read as follows: 

§ 337.12 Frequency of examination. 

* * * * * 

(d) From December 2, 2020, through 

December 31, 2021, for purposes of 

determining eligibility for the extended 

examination cycle described in 

paragraph (b) of this section, the total 

assets of an institution shall be 

determined based on the lesser of: 

(1) The assets of the institution as of 

December 31, 2019; and 

(2) The assets of the institution as of 

the end of the most recent calendar 

quarter. 

PART 347—INTERNATIONAL 

BANKING 

■ 33. 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. 111–203, section 939A, 124 

Stat. 1376, 1887 (July 21, 2010) (codified 15 

U.S.C. 78o–7 note). 

■ 34. Amend § 347.211 by adding 

paragraph (d) to read as follows: 

§ 347.21 Examination of branches of 

foreign banks. 

* * * * * 

(d) From December 2, 2020, through 

December 31, 2021, for purposes of 

determining eligibility for the extended 

examination cycle described in 

paragraph (b) of this section, the total 

assets of an insured branch shall be 

determined based on the lesser of: 

(1) The assets of the insured branch as 

of December 31, 2019; and 

(2) The assets of the insured branch as 

of the end of the most recent calendar 

quarter. 

PART 348—MANAGEMENT OFFICIAL 

INTERLOCKS 

■ 35. The authority citation for part 348 

continues to read as follows: 

Authority: 12 U.S.C. 1823(k), 3207. 

■ 36. Amend § 348.2 by adding 

paragraph (q)(3) to read as follows: 

§ 348.2 Other definitions and rules of 

construction. 

* * * * * 

(q) * * * 

(3)(i) Temporary relief for 2020 and 

2021. Notwithstanding paragraph (q)(1) 

of this section, from December 2, 2020, 

through December 31, 2021, except as 

provided in paragraph (q)(3)(ii) of this 

section, the term total assets, with 

respect to a depository organization, 

means the lesser of assets of the 

depository organization reported on a 

consolidated basis as of December 31, 

2019, and assets reported on a 

consolidated basis as of December 31, 

2020. 

(ii) Reservation of authority. The 

temporary relief provided under this 

paragraph (q)(3)(i) of this section does 

not apply to an FDIC-supervised 

institution if the FDIC determines that 

permitting the FDIC-supervised 

institution to determine its assets in 

accordance with that paragraph would 

not be commensurate with the risk 

posed by the institution. When making 

this determination, the FDIC will 

consider all relevant factors, including 

the extent of asset growth of the FDICsupervised institution since December 

31, 2019; the causes of such growth, 

including whether growth occurred as a 

result of mergers or acquisitions; 

whether such growth is likely to be 

temporary or permanent; whether the 

FDIC-supervised institution has become 

involved in any additional activities 

since December 31, 2019; and the type 

of assets held by the FDIC-supervised 

institution. 

* * * * * 

Brian P. Brooks, 

Acting Comptroller of the Currency. 

By order of the Board of Governors of the 

Federal Reserve System. 

Ann Misback, 

Secretary of the Board. 

Federal Deposit Insurance Corporation. 

By order of the Board of Directors. 

Dated at Washington, DC, on or about 

November 17, 2020. 

James P. Sheesley, 

Assistant Executive Secretary. 

[FR Doc. 2020–26138 Filed 12–1–20; 8:45 am] 

BILLING CODE 6210–01–P 

FARM CREDIT ADMINISTRATION 

12 CFR Part 614 

RIN 3052–AC92 

Amortization Limits; Correction 

AGENCY: Farm Credit Administration. 

ACTION: Final rule; correction. 

SUMMARY: On September 28, 2020, the 

Farm Credit Administration (FCA) 

published a final rule that repealed the 

regulatory requirement that production 

credit associations (PCAs) amortize their 

loans in 15 years or less, while requiring 

all Farm Credit System (FCS or System) 

associations to address amortization 

through their credit underwriting 

standards and internal controls. In that 

publication, FCA inadvertently omitted 

a statement that the Office of 

Management and Budget’s Office of 

Information and Regulatory Affairs 

determined that the final rule is not a 

major rule under the applicable 

provisions of the Congressional Review 

Act. This document corrects that error. 

DATES: This correction is effective 

December 2, 2020. 

FOR FURTHER INFORMATION CONTACT: 

Richard A. Katz, Senior Counsel, Office 

of General Counsel, (703) 883–4020, 

TTY (703) 883–4056, Farm Credit 

Administration, 1501 Farm Credit Drive, 

McLean, VA 22102–5090. 

SUPPLEMENTARY INFORMATION: In FR Doc. 

2020–18552, entitled ‘‘Amortization 

Limits,’’ beginning on page 60691 in the 

Federal Register of Monday, September 

28, 2020, make the following 

corrections; 

1. On page 60693, in the second 

column, the heading for section V is 

corrected to read ‘‘Regulatory Flexibility 

Act and Major Rule Conclusion.’’ 

2. On page 60693, in the second 

column, add paragraph at the end of 

section V to read as follows: 

Under the provisions of the Congressional 

Review Act (5 U.S.C. 801 et seq.), the Office 

of Management and Budget’s Office of 

Information and Regulatory Affairs has 

determined that this final rule is not a ‘‘major 

rule,’’ as the term is defined at 5 U.S.C. 

804(2).