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

43961 

Vol. 83, No. 168 

Wednesday, August 29, 2018 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Part 4 

[Docket ID OCC–2018–0014] 

RIN 1557–AE37 

FEDERAL RESERVE SYSTEM 

12 CFR Parts 208 and 211 

[Docket No. R–1615] 

RIN 7100–AF09 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Parts 337 and 347 

RIN 3064–AE76 

Expanded Examination Cycle for 

Certain Small Insured Depository 

Institutions and U.S. Branches and 

Agencies of Foreign Banks 

AGENCY: Office of the Comptroller of the 

Currency (OCC), Treasury; Board of 

Governors of the Federal Reserve 

System (Board); and Federal Deposit 

Insurance Corporation (FDIC). 

ACTION: Joint interim final rules and 

request for comments. 

SUMMARY: The OCC, Board, and FDIC 

(collectively, the agencies) are jointly 

issuing and requesting public comment 

on interim final rules to implement 

section 210 of the Economic Growth, 

Regulatory Relief, and Consumer 

Protection Act (Economic Growth Act), 

which was enacted on May 24, 2018. 

Section 210 of the Economic Growth 

Act amends section 10(d) of the Federal 

Deposit Insurance Act (FDI Act) to 

permit the agencies to examine 

qualifying insured depository 

institutions (IDIs) with under $3 billion 

in total assets not less than once during 

each 18-month period. Prior to 

enactment of the Economic Growth Act, 

qualifying IDIs with under $1 billion in 

total assets were eligible for an 18- 

month on-site examination cycle. The 

interim final rules generally would 

allow qualifying IDIs with under $3 

billion in total assets to benefit from the 

extended 18-month examination 

schedule. In addition, the interim final 

rules make parallel changes to the 

agencies’ regulations governing the onsite examination cycle for U.S. branches 

and agencies of foreign banks, 

consistent with the International 

Banking Act of 1978 (IBA). 

DATES: These interim final rules are 

effective on August 29, 2018. Comments 

on the rules must be received by 

October 29, 2018. 

ADDRESSES: 

OCC: You may submit comments to 

the OCC by any of the methods set forth 

below. Commenters are encouraged to 

submit comments by the Federal 

eRulemaking Portal or email, if possible. 

Please use the title ‘‘Expanded 

Examination Cycle for Certain Small 

Insured Depository Institutions and U.S. 

Branches and Agencies of Foreign 

Banks’’ to facilitate the organization and 

distribution of the comments. You may 

submit comments by any of the 

following methods: 

• Federal eRulemaking Portal— 

‘‘Regulations.gov’’: Go to http://

www.regulations.gov. Enter ‘‘Docket ID 

OCC–2018–0014’’ in the Search Box and 

click ‘‘Search.’’ Click on ‘‘Comment 

Now’’ to submit public comments. 

• Click on the ‘‘Help’’ tab on the 

Regulations.gov home page to get 

information on using Regulations.gov, 

including instructions for submitting 

public comments. 

• Email: regs.comments@

occ.treas.gov. 

• Mail: Legislative and Regulatory 

Activities Division, 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. 

• Fax: (571) 465–4326. 

Instructions: You must include 

‘‘OCC’’ as the agency name and ‘‘Docket 

ID OCC–2018–0014’’ 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 that you provide, 

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 

enclose 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 any of the 

following methods: 

• Viewing Comments Electronically: 

Go to http://www.regulations.gov. Enter 

‘‘Docket ID OCC–2018–0014’’ in the 

Search box and click ‘‘Search.’’ Click on 

‘‘Open Docket Folder’’ on the right side 

of the screen. Comments and supporting 

materials can be viewed and filtered by 

clicking on ‘‘View all documents and 

comments in this docket’’ and then 

using the filtering tools on the left side 

of the screen. 

• Click on the ‘‘Help’’ tab on the 

Regulations.gov home page to get 

information on using Regulations.gov. 

The docket may be viewed after the 

close of the comment period in the same 

manner as during the comment period. 

• Viewing Comments Personally: You 

may personally inspect comments at the 

OCC, 400 7th Street SW, Washington, 

DC. For security reasons, the OCC 

requires visitors to make an 

appointment to inspect comments. You 

may do so by calling (202) 649–6700 or, 

for persons who are deaf or hearing 

impaired, TTY, (202) 649–5597. Upon 

arrival, visitors will be required to 

present a valid government-issued 

photo identification and to submit to 

security screening in order to inspect 

comments. 

Board: You may submit comments, 

identified by Docket No. R–1615 and 

RIN 7100–AF09, by any of the following 

methods: 

• Agency Website: http://

www.federalreserve.gov. Follow the 

instructions for submitting comments at 

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

foia/proposedregs.aspx. 

• Email: 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 


sradovich on DSK3GMQ082PROD with RULES
43962 Federal Register / Vol. 83, No. 168 / Wednesday, August 29, 2018 / Rules and Regulations 

1Public Law 115–174, 132 Stat. 1296 (2018). 

2 12 U.S.C. 1820(d). 

3See section 83001 of the Fixing America’s 

Surface Transportation Act (the FAST) Act, enacted 

on December 4, 2015. Public Law 114–94, 129 Stat. 

1312 (permitting the agencies to examine qualifying 

IDIs with under $1 billion in total assets not less 

than once during each 18-month period). The 

agencies published interim final rules 

implementing the FAST Act amendments in 

February 2016, and final rules in December 2016. 

See 81 FR 10069 (Feb. 29, 2016) and 81 FR 90949 

(Dec. 16. 2016), respectively, codified at 12 CFR 4.6 

and 4.7 (OCC), 12 CFR 208.64 and 211.26 (Board), 

12 CFR 337.12 and 347.211 (FDIC). 

4 12 U.S.C. 1820(d)(4) and 1820(d)(10). 

5 12 U.S.C. 3105(c)(1)(C). 

6 12 U.S.C. 1820(d)(1). 

7The Board, FDIC, or OCC. See 12 U.S.C. 1813(q). 

8 IDIs are evaluated under the Uniform Financial 

Institutions Rating System (commonly referred to as 

‘‘CAMELS’’). CAMELS is an acronym that is drawn 

from the first letters of the individual components 

of the rating system: Capital adequacy, Asset 

quality, Management, Earnings, Liquidity, and 

Sensitivity to market risk. CAMELS ratings of ‘‘1’’ 

and ‘‘2’’ correspond with ratings of ‘‘outstanding’’ 

and ‘‘good.’’ In addition to having a CAMELS 

composite rating of ‘‘1’’ or ‘‘2,’’ an IDI is considered 

to be ‘‘well managed’’ for the purposes of section 

10(d) of the FDI Act only if the IDI also received 

a rating of ‘‘1’’ or ‘‘2’’ for the management 

component of the CAMELS rating at its most recent 

examination. See 72 FR 17798 (Apr. 10, 2007). 

9The Board and the FDIC, as the appropriate 

Federal banking agencies for State-chartered 

insured banks and savings associations, are 

permitted to conduct on-site examinations of such 

IDIs on alternating 12-month or 18-month periods 

with an IDI’s State supervisor, if the Board or FDIC, 

as appropriate, determines that the alternating 

examination conducted by the State carries out the 

purposes of section 10(d) of the FDI Act. 12 U.S.C. 

1820(d)(3). 

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 personally 

identifiable information at the 

commenter’s request. Public comments 

may also be viewed electronically or in 

paper form in Room 3515, 1801 K Street 

NW, Washington, DC 20006 between 

9:00 a.m. and 5:00 p.m. on weekdays. 

FDIC: You may submit comments, 

identified by RIN 3064–AE76, by any of 

the following methods: 

• Agency Website: http://

www.FDIC.gov/regulations/laws/ 

Federal/. Follow the instructions for 

submitting comments on the Agency 

website. 

• Email: comments@fdic.gov. Include 

the RIN 3064–AE76 in the subject line 

of the message. 

• Mail: Robert E. Feldman, Executive 

Secretary, Attention: Comments/Legal 

ESS, Federal Deposit Insurance 

Corporation, 550 17th Street NW, 

Washington, DC 20429. 

• Hand Delivery/Courier: Comments 

may be hand-delivered to the guard 

station at the rear of the 550 17th Street 

NW, Building (located on F Street) on 

business days between 7:00 a.m. and 

5:00 p.m. 

Instructions: Comments submitted 

must include ‘‘FDIC’’ and ‘‘RIN 3064– 

AE76.’’ Comments received will be 

posted without change to http://

www.FDIC.gov/regulations/laws/ 

Federal/, including any personal 

information provided. 

FOR FURTHER INFORMATION CONTACT: 

OCC: Enice Thomas, Senior Advisor 

to Senior Deputy Comptroller, Midsize 

and Community Bank Supervision, 

(202) 649–5420; and Deborah Katz, 

Assistant Director, Melissa J. Lisenbee, 

Senior Attorney, or Christopher 

Rafferty, Attorney, Legislative and 

Regulatory Activities Division, (202) 

649–5490; for persons who are deaf or 

hearing impaired, TTY, (202) 649–5597. 

Board: Division of Supervision and 

Regulation—Richard Naylor, Associate 

Director, (202) 728–5854; Jonathan 

Rono, Manager, (202) 721–4568; 

Assetou Traore, Supervisory Financial 

Analyst, (202) 974–7066; Virginia Gibbs, 

Manager, (202) 452–2521; or Alexander 

Kobulsky, Supervisory Financial 

Analyst, (202) 452–2031; and Legal 

Division—Laurie Schaffer, Associate 

General Counsel, (202) 452–2277; Mary 

Watkins, Attorney, (202) 452–3722; or 

Alyssa O’Connor, Attorney, (202) 452– 

3886. 

FDIC: Policy Branch Division of Risk 

Management and Supervision—Thomas 

F. Lyons, Chief, Policy and Program 

Development, (202) 898–6850, tlyons@

FDIC.gov; Karen J. Currie, Senior 

Examination Specialist, (202) 898–3981, 

Policy and Program Development, 

Division of Risk Management 

Supervision; Legal Division—Suzanne J. 

Dawley, Counsel, (202) 898–6509. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Enacted on May 24, 2018, section 210 

of the Economic Growth Act 1 amended 

section 10(d) of the FDI Act 2 to permit 

the agencies to examine qualifying IDIs 

(generally those IDIs that are well 

capitalized and well managed) with 

under $3 billion in total assets not less 

than once during each 18-month period, 

rather than not less than once during 

each 12-month period. Prior to the 

enactment of the Economic Growth Act, 

qualifying IDIs with under $1 billion in 

total assets were eligible for an 18- 

month on-site examination cycle.3

More specifically, the agencies are 

issuing interim final rules to implement 

the Economic Growth Act’s 

amendments to sections 10(d)(4) and 

10(d)(10) of the FDI Act 4 that allow 

qualifying IDIs with under $3 billion in 

total assets to benefit from the extended 

18-month examination schedule. In 

addition, the interim final rules make 

parallel changes to the agencies’ 

regulations governing the on-site 

examination cycle for U.S. branches and 

agencies of foreign banks, consistent 

with the IBA.5

Section 10(d)(1) of the FDI Act 6

generally requires the appropriate 

Federal banking agency for an IDI 7 to 

conduct a full-scope, on-site 

examination of an IDI at least once 

during each 12-month period. With the 

enactment of section 210 of the 

Economic Growth Act, section 10(d)(4) 

of the FDI Act authorizes the 

appropriate Federal banking agency to 

extend the on-site examination cycle for 

an IDI to at least once during an 18- 

month period if the IDI (1) has total 

assets of less than $3 billion; (2) is well 

capitalized (as defined in 12 

U.S.C.1831o (prompt corrective action)); 

(3) was found, at its most recent 

examination, to be well managed 8 and 

to have a composite condition of 

‘‘outstanding’’ or, in the case of an IDI 

with total assets of not more than $200 

million, ‘‘outstanding’’ or ‘‘good;’’ (4) is 

not subject to a formal enforcement 

proceeding or order by the FDIC or its 

appropriate Federal banking agency; 

and (5) has not undergone a change in 

control during the previous 12-month 

period in which a full-scope, on-site 

examination otherwise would have been 

required. Section 10(d)(10) of the FDI 

Act gives each appropriate Federal 

banking agency discretionary authority 

to extend eligibility for an 18-month 

examination cycle, by regulation, to 

qualifying IDIs with an ‘‘outstanding’’ or 

‘‘good’’ composite condition and total 

assets not greater than $3 billion, if the 

agency determines that this amount 

would be consistent with the principles 

of safety and soundness for IDIs.9

In addition, section 7(c)(1)(C) of the 

IBA provides that a Federal or a State 

branch or agency of a foreign bank shall 

be subject to on-site examination by its 

appropriate Federal banking agency or 

State bank supervisor as frequently as a 

national or State bank would be subject 

to such an examination by the agency. 

II. Description of the Interim Final 

Rules 

The agencies are adopting interim 

final rules to implement the Economic 

Growth Act’s amendments to sections 

10(d)(4) and 10(d)(10) of the FDI Act. 

The rules implement section 10(d)(4) of 

the FDI Act to increase, from $1 billion 

to $3 billion, the total asset threshold 

under which an agency may apply an 


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Federal Register / Vol. 83, No. 168 / Wednesday, August 29, 2018 / Rules and Regulations 43963 

10Call Report data, Mar. 31, 2018. 

11 Id. 

12 5 U.S.C. 553. 

13 5 U.S.C. 553(b)(B). 

14 5 U.S.C. 553(b)(B); 553(d)(3). 

15 5 U.S.C. 553(d). 

16 5 U.S.C. 553(d)(1). 

18-month on-site examination cycle for 

qualified IDIs that have an 

‘‘outstanding’’ composite rating. 

The agencies also are exercising their 

discretionary authority under section 

10(d)(10) of the FDI Act to extend 

eligibility for an 18-month examination 

cycle, by regulation, to qualifying IDIs 

with an ‘‘outstanding’’ or ‘‘good’’ 

composite rating with total assets under 

$3 billion. The agencies have 

determined that increasing the 

maximum asset amount limitation for 

qualifying IDIs with less than $3 billion 

in total assets is consistent with the 

principles of safety and soundness. 

In determining whether the reduction 

in examination frequency is consistent 

with the principles of safety and 

soundness for such IDIs, the agencies 

considered the following factors. The 

agencies agree that extending the 

examination cycle could make it more 

likely that there will be a delay in an 

agency’s ability to detect deterioration 

in an IDI’s performance. However, the 

agencies believe that extending the 

examination cycle from 12 months to 18 

months for these small IDIs with 

relatively simple risk profiles should 

not appreciably increase their risk of 

financial deterioration or failure. In 

addition, the agencies will continue 

their off-site monitoring activities and 

have the ability to examine IDIs more 

frequently as necessary or appropriate. 

The agencies also note that, in order to 

qualify for an 18-month examination 

cycle, any IDI with total assets under $3 

billion—including one with a composite 

rating of ‘‘good’’—must meet the other 

capital, managerial, and supervisory 

criteria set forth in section 10(d) of the 

FDI Act and the agencies’ implementing 

regulations. 

Considering the agencies’ off-site 

monitoring activities; their discretion to 

examine IDIs more frequently as 

necessary; and the capital, managerial, 

and supervisory criteria in section 10(d) 

of the FDI Act, the agencies believe that 

increasing the maximum asset amount 

limitation for IDIs from less than $1 

billion to less than $3 billion is 

consistent with the principles of safety 

and soundness. Additionally, the 

agencies believe this increase will allow 

the agencies to better focus their 

supervisory resources on the IDIs and 

U.S. branches and agencies of foreign 

banks (collectively, financial 

institutions) that may present capital, 

managerial, or other issues of 

supervisory concern, and therefore has 

the ability to enhance safety and 

soundness collectively for all financial 

institutions. The agencies will continue 

to monitor financial institutions in this 

asset range and the impact of the 

extended examination cycle. 

In accordance with section 7(c)(1)(C) 

of the IBA, the agencies also are making 

conforming changes to their regulations 

governing the on-site examination cycle 

for the U.S. branches and agencies of 

foreign banks. For the same reasons as 

discussed above, the agencies believe 

that extending similar treatment to 

qualifying U.S. branches and agencies of 

foreign banks is consistent with the 

principles of safety and soundness. 

The agencies estimate that the interim 

final rules will increase the number of 

banks and savings associations that may 

qualify for an extended 18-month 

examination cycle by approximately 420 

(227 of which are supervised by the 

FDIC, 100 by the OCC, and 93 by the 

Board), bringing the total number to 

4,798 banks and savings associations.10

Approximately 33 U.S. branches and 

agencies of foreign banks would be 

eligible for the extended examination 

cycle based on the interim final rules (2 

of which are supervised by the FDIC, 9 

by the OCC, and 22 by the Board).11

Effective Date/Request for Comment 

The agencies are issuing the interim 

final rules without prior notice and the 

opportunity for public comment and the 

30-day delayed effective date ordinarily 

prescribed by the Administrative 

Procedure Act (APA).12 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.’’ 13 The interim 

final rules implement the provisions in 

section 210 of the Economic Growth 

Act, which was enacted on May 24, 

2018. In particular, the interim final 

rules adopt the statutory increase in the 

total asset threshold, from under $1 

billion to under $3 billion, for 

qualifying IDIs with an ‘‘outstanding’’ 

composite rating, and also make 

available, pursuant to statutory 

authority, the 18-month examination 

cycle for qualifying IDIs with an 

‘‘outstanding’’ or ‘‘good’’ composite 

rating and total assets under $3 billion. 

The interim final rules also make 

conforming amendments to the 

agencies’ regulations governing the onsite examination cycle for U.S. branches 

and agencies of foreign banks, as 

required by statute. 

The agencies believe that the public 

interest is best served by implementing 

the statutorily amended thresholds as 

soon as possible. Immediate 

implementation will reduce regulatory 

burden on small, well capitalized, and 

well managed financial institutions 

while also allowing the agencies to 

better focus their supervisory resources 

on those financial institutions that may 

present capital, managerial, or other 

issues of supervisory concern. Because 

the affected financial institutions and 

agencies must plan and prepare for 

examinations in advance, the agencies 

believe issuing interim final rules will 

provide the certainty necessary to allow 

the financial institutions and agencies to 

begin scheduling for examinations 

according to the new examination cycle 

period. In addition, the agencies believe 

that providing a notice and comment 

period prior to issuance of the interim 

final rules is unnecessary because the 

agencies do not expect public objection 

to the regulations being promulgated as 

they merely provide the relief that 

Congress intended. Moreover, because 

the interim final rules will permit an 

agency to conduct an on-site 

examination of financial institutions 

more frequently than once every 18 

months, the agencies retain the ability to 

maintain the current—or a more 

frequent—on-site examination schedule 

for a financial institution if the relevant 

agency determines it would be 

necessary or appropriate. For these 

reasons, the agencies find there is good 

cause consistent with the public interest 

to issue the rules without advance 

notice and comment.14

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.15 The agencies conclude that, 

because the rules recognize an 

exemption, the interim final rules are 

exempt from the APA’s delayed 

effective date requirement.16

Additionally, the agencies find good 

cause to publish the interim final rules 

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 rules without 

advance notice and comment and with 


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43964 Federal Register / Vol. 83, No. 168 / Wednesday, August 29, 2018 / Rules and Regulations 

17Public Law 106–102, section 722, 113 Stat. 

1338, 1471 (1999). 

18 5 U.S.C. 601 et seq. 

19Under 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 $550 

million or less and trust companies with total assets 

of $38.5 million or less. 

20 44 U.S.C. 3501–3521. 

21 12 U.S.C. 4802(a). 

an immediate effective date, the 

agencies are interested in the views of 

the public and request comment on all 

aspects of the interim final rules. 

III. Solicitation of Comments on Use of 

Plain Language 

Section 722 of the Gramm-LeachBliley Act 17 requires the Federal 

banking agencies to use plain language 

in all proposed and final rules 

published after January 1, 2000. The 

agencies invite your comments on how 

to make these interim final rules easier 

to understand. For example: 

• Have the agencies presented the 

material in an organized manner that 

meets your needs? If not, how could this 

material be better organized? 

• Are the requirements in the interim 

final rules clearly stated? If not, how 

could the interim final rules be more 

clearly stated? 

• Do the interim final rules contain 

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 

rules easier to understand? If so, what 

changes to the format would make the 

interim final rules easier to understand? 

• What else could the agencies do to 

make the regulation easier to 

understand? 

IV. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(RFA) 18 requires an agency to consider 

whether the rules it proposes will have 

a significant economic impact on a 

substantial number of small entities.19

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. Further, the agencies note that no 

small entities, as defined by the Small 

Business Administration’s rules 

implementing the RFA, will be affected 

by the interim final rule’s increased 

asset thresholds. 

V. Paperwork Reduction Act 

The Paperwork Reduction Act of 

1995 20 states that no agency may 

conduct or sponsor, nor is the 

respondent required to respond to, an 

information collection unless it displays 

a currently valid Office of Management 

and Budget (OMB) control number. 

Because the interim final rules do not 

create a new, or revise an existing, 

collection of information, no 

information collection request 

submission needs to be made to the 

OMB. 

VI. Riegle Community Development 

and Regulatory Improvement Act 

Pursuant to section 302(a) of the 

Riegle Community Development and 

Regulatory Improvement Act 

(RCDRIA),21 in determining the effective 

date and administrative compliance 

requirements for a new regulation that 

imposes additional reporting, 

disclosure, or other requirements on 

IDIs, each Federal banking agency must 

consider any administrative burdens 

that such regulation would place on IDIs 

and the benefits of such regulation. In 

addition, section 302(b) of the RCDRIA 

requires such new regulation to take 

effect on the first day of a calendar 

quarter that begins on or after the date 

on which the regulations are published 

in final form, with certain exceptions, 

including for good cause. Because the 

interim final rules expand eligibility for 

an 18-month, rather than 12-month, onsite examination schedule and are 

burden-reducing in nature, the interim 

final rules do not impose additional 

reporting, disclosure, or other 

requirements on IDIs, and section 302 of 

the RCDRIA therefore does not apply. 

Nevertheless, the agencies have 

considered the administrative burdens 

that such regulations would place on 

depository institutions and the benefits 

of such regulations in determining the 

effective date and compliance 

requirements. In addition, for the same 

reasons set forth previously under the 

discussion of section 553(b)(B) of the 

APA, the agencies find good cause 

would exist under section 302 of 

RCDRIA to publish these interim final 

rules with an immediate effective date. 

VII. OCC Unfunded Mandates Reform 

Act of 1995 Determination 

Consistent with section 202 of the 

Unfunded Mandates Reform Act of 1995 

(UMRA), before promulgating any final 

rule for which a general notice of 

proposed rulemaking was published, 

the OCC prepares an economic analysis 

of the final rule. As discussed 

previously, the OCC has determined 

that the publication of a general notice 

of proposed rulemaking is unnecessary. 

Accordingly, the OCC has not prepared 

an economic analysis of the joint 

interim final rules under UMRA. 

List of Subjects 

12 CFR Part 4 

Administrative practice and 

procedure, Freedom of information, 

Individuals with disabilities, Minority 

businesses, Organization and functions 

(Government agencies), Reporting and 

recordkeeping requirements, Women. 

12 CFR Part 208 

Accounting, Agriculture, Banks, 

banking, Confidential business 

information, Crime, Currency, Federal 

Reserve System, Flood insurance, 

Mortgages, Reporting and recordkeeping 

requirements, Safety and soundness, 

Securities. 

12 CFR Part 211 

Exports, Federal Reserve System, 

Foreign banking, Holding companies, 

Investments, Reporting and 

recordkeeping requirements. 

12 CFR Part 337 

Banks, banking, Reporting and 

recordkeeping requirements, Savings 

Associations. 

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. 

Office of the Comptroller of the 

Currency 

12 CFR Chapter I 

For the reasons set forth in the joint 

preamble, the OCC amends part 4 of 

chapter I of title 12 of the Code of 

Federal Regulations as follows: 

PART 4—ORGANIZATION AND 

FUNCTIONS, AVAILABILITY AND 

RELEASE OF INFORMATION, 

CONTRACTING OUTREACH 

PROGRAM, POST-EMPLOYMENT 

RESTRICTIONS FOR SENIOR 

EXAMINERS 

■ 1. The authority citation for part 4 

continues to read as follows: 

Authority: 5 U.S.C. 301, 552; 12 U.S.C. 1, 

93a, 161, 481, 482, 484(a), 1442, 1462a, 1463, 


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Federal Register / Vol. 83, No. 168 / Wednesday, August 29, 2018 / Rules and Regulations 43965 

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). 

■ 2. Section 4.6 is amended by revising 

paragraph (b)(1) to read as follows: 

§ 4.6 Frequency of examination of national 

banks and Federal savings associations. 

* * * * * 

(b) * * * 

(1) The bank or Federal savings 

association has total assets of less than 

$3 billion; 

* * * * * 

■ 3. Section 4.7 is amended by revising 

paragraph (b)(1)(i) to read as follows: 

§ 4.7 Frequency of examination of Federal 

agencies and branches. 

* * * * * 

(b) * * * 

(1) * * * 

(i) Has total assets of less than $3 

billion; 

* * * * * 

Federal Reserve System 

12 CFR Chapter II 

For the reasons set forth in the joint 

preamble, the Board amends parts 208 

and 211 of chapter II of title 12 of the 

Code of Federal Regulations as follows: 

PART 208—MEMBERSHIP OF STATE 

BANKING INSTITUTIONS IN THE 

FEDERAL RESERVE SYSTEM 

(REGULATION H) 

■ 4. The authority citation for part 208 

continues to read as follows: 

Authority: 12 U.S.C. 24, 36, 92a, 93a, 

248(a), 248(c), 321–338a, 371d, 461, 481–486, 

601, 611, 1814, 1816, 1818, 1820(d)(9), 

1833(j), 1828(o), 1831, 1831o, 1831p–1, 

1831r–1, 1831w, 1831x, 1835a, 1882, 2901– 

2907, 3105, 3310, 3331–3351, 3353, and 

3906–3909; 15 U.S.C. 78b, 781(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, 

4104b, 4106, and 4128. 

■ 5. Amend § 208.64 by revising 

paragraph (b)(1) to read as follows: 

§ 208.64 Frequency of examination. 

* * * * * 

(b) * * * 

(1) The bank has total assets of less 

than $3 billion; 

* * * * * 

PART 211—INTERNATIONAL 

BANKING OPERATIONS 

(REGULATION K) 

■ 6. The authority citation for part 211 

continues to read as follows: 

Authority: 12 U.S.C. 221 et seq., 1818, 

1835a, 1841 et seq., 3101 et seq., 3901 et seq., 

and 5101 et seq.; 15 U.S.C. 1681s, 1681w, 

6801 and 6805. 

■ 7. Amend § 211.26 by revising 

paragraph (c)(2)(i)(A) to read as follows: 

§ 211.26 Examinations of offices and 

affiliates of foreign banks. 

* * * * * 

(c) * * * 

(2) * * * 

(i) * * * 

(A) Has total assets of less than $3 

billion; 

* * * * * 

Federal Deposit Insurance Corporation 

12 CFR Chapter III 

For the reasons set forth in the joint 

preamble, the Board of Directors of the 

FDIC amends parts 337 and 347 of 

chapter III of title 12 of the Code of 

Federal Regulations as follows: 

PART 337—UNSAFE AND UNSOUND 

BANK PRACTICES 

■ 8. The authority citation for part 337 

continues to read as follows: 

Authority: 12 U.S.C. 375a(4), 375b, 

1463(a)(1), 1816, 1818(a), 1818(b), 1819, 

1820(d), 1828(j)(2), 1831, 1831f, 5412. 

■ 9. Amend § 337.12 by revising 

paragraph (b)(1) to read as follows: 

§ 337.12 Frequency of examination. 

* * * * * 

(b) * * * 

(1) The institution has total assets of 

less than $3 billion; 

* * * * * 

PART 347—INTERNATIONAL 

BANKING 

■ 10. The authority citation for part 347 

continues to read as follows: 

Authority: 12 U.S.C. 1813, 1815, 1817, 

1819, 1820, 1828, 3103, 3104, 3105, 3108, 

3109; Pub. L. 111–203, section 939A, 124 

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

U.S.C. 78o–7 note). 

■ 11. Amend § 347.211 by revising 

paragraph (b)(1)(i) to read as follows: 

§ 347.211 Examination of branches of 

foreign banks. 

* * * * * 

(b) * * * 

(1) * * * 

(i) Has total assets of less than $3 

billion; 

* * * * * 

Dated: August 20, 2018. 

Joseph M. Otting, 

Comptroller of the Currency. 

Board of Governors of the Federal Reserve 

System, August 22, 2018. 

Ann E. Misback, 

Secretary to the Board. 

Dated at Washington, DC, on August 22, 

2018. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. 2018–18685 Filed 8–28–18; 8:45 am] 

BILLING CODE 4810–33–P 

FEDERAL HOUSING FINANCE 

AGENCY 

12 CFR Parts 1209, 1217, and 1250 

RIN 2590–AA93 

Rules of Practice and Procedure; Civil 

Money Penalty Inflation Adjustment 

AGENCY: Federal Housing Finance 

Agency. 

ACTION: Final rule. 

SUMMARY: The Federal Housing Finance 

Agency (FHFA) is issuing this final rule 

amending its Rules of Practice and 

Procedure and other agency regulations 

to adjust each civil money penalty 

within its jurisdiction to account for 

inflation, pursuant to the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended by the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015. 

DATES: Effective date: September 28, 

2018. 

FOR FURTHER INFORMATION CONTACT: 

Stephen E. Hart, Deputy General 

Counsel, at (202) 649–3053, 

Stephen.Hart@fhfa.gov, or Frank R. 

Wright, Assistant General Counsel, at 

(202) 649–3087, Frank.Wright@fhfa.gov 

(not toll-free numbers); Federal Housing 

Finance Agency, 400 7th Street SW, 

Washington, DC 20219. The telephone 

number for the Telecommunications 

Device for the Hearing Impaired is: (800) 

877–8339 (TDD only). 

SUPPLEMENTARY INFORMATION: 

I. Background 

FHFA is an independent agency of the 

Federal government, and the financial 

safety and soundness regulator of the 

Federal National Mortgage Association 

(Fannie Mae) and the Federal Home 

Loan Mortgage Corporation (Freddie 


sradovich on DSK3GMQ082PROD with RULES