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

87895 

Vol. 88, No. 243 

Wednesday, December 20, 2023 

1Public Law 111–203, 124 Stat. 1376 (2010). 

2See OCC interim final rule, 76 FR 48950 (Aug. 

9, 2011). 

3See Board interim final rule, 76 FR 56508 (Sept. 

13, 2011). 

FEDERAL RESERVE SYSTEM 

12 CFR Part 228 

[Regulation BB; Docket No. R–1826] 

RIN 7100–AG 73 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 345 

RIN 3064–AF98 

Community Reinvestment Act 

Regulations Asset-Size Thresholds 

AGENCY: Board of Governors of the 

Federal Reserve System (Board); Federal 

Deposit Insurance Corporation (FDIC). 

ACTION: Joint final rule; technical 

amendment. 

SUMMARY: The Board and the FDIC 

(collectively, the Agencies) are 

amending their Community 

Reinvestment Act (CRA) regulations to 

adjust the asset-size thresholds used to 

define ‘‘small bank’’ and ‘‘intermediate 

small bank.’’ As required by the CRA 

regulations, the adjustment to the 

threshold amount is based on the 

annual percentage change in the 

Consumer Price Index for Urban Wage 

Earners and Clerical Workers (CPI–W). 

DATES: Effective January 1, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Board: Amal S. Patel, Senior Counsel, 

(202) 912–7879, Division of Consumer 

and Community Affairs; or Sumeet 

Shroff, Counsel, (202) 973–5085, Legal 

Division, Board of Governors of the 

Federal Reserve System, 20th Street and 

Constitution Avenue NW, Washington, 

DC 20551. For users of 

Telecommunications Device for the Deaf 

(TDD) and TTY–TRS, please call 711 

from any telephone, anywhere in the 

United States. 

FDIC: Patience R. Singleton, Senior 

Policy Analyst, Supervisory Policy 

Branch, Division of Depositor and 

Consumer Protection, (202) 898–6859, 

psingleton@fdic.gov; or Sherry A. 

Betancourt, Counsel, (202) 898–6560, 

sbetancourt@fdic.gov, or Alys V. Brown, 

Senior Attorney, (202), 898–3565, 

alybrown@fdic.gov, Legal Division, 

Federal Deposit Insurance Corporation, 

550 17th Street NW, Washington, DC 

20429. 

SUPPLEMENTARY INFORMATION: 

Background and Description of the 

Joint Final Rule 

The Agencies’ CRA regulations 

establish CRA performance standards 

for small and intermediate small banks. 

The CRA regulations define small and 

intermediate small banks by reference to 

asset-size criteria expressed in dollar 

amounts, and they further require the 

Agencies to publish annual adjustments 

to these dollar figures based on the yearto-year change in the average of the CPI– 

W, not seasonally adjusted, for each 12- 

month period ending in November, with 

rounding to the nearest million. 12 CFR 

228.12(u)(2) and 345.12(u)(2). This 

adjustment formula was first adopted 

for CRA purposes by the Board, the 

Office of the Comptroller of the 

Currency (OCC), and the FDIC on 

August 2, 2005, effective September 1, 

2005. 70 FR 44256 (Aug. 2, 2005). At 

that time, the Agencies noted that the 

CPI–W is also used in connection with 

other Federal laws, such as the Home 

Mortgage Disclosure Act. See 12 U.S.C. 

2808; 12 CFR 1003.2. On March 22, 

2007, and effective July 1, 2007, the 

former Office of Thrift Supervision 

(OTS), the agency then responsible for 

regulating savings associations, adopted 

an annual adjustment formula 

consistent with that of the other Federal 

banking agencies in its CRA rule 

previously set forth at 12 CFR part 563e. 

72 FR 13429 (Mar. 22, 2007). 

Pursuant to the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (Dodd-Frank Act),1 effective July 21, 

2011, CRA rulemaking authority for 

Federal and State savings associations 

was transferred from the OTS to the 

OCC, and the OCC subsequently 

republished, at 12 CFR part 195, the 

CRA regulations applicable to those 

institutions.2 In addition, the DoddFrank Act transferred responsibility for 

supervision of savings and loan holding 

companies and their non-depository 

subsidiaries from the OTS to the Board, 

and the Board subsequently amended its 

CRA regulation to reflect this transfer of 

supervisory authority.3

The OCC has determined that it will 

adjust the asset-size criteria for 

institutions that are subject to OCCissued CRA regulations, including 

national banks and Federal and State 

savings associations, by a means 

separate from this rulemaking process. 

The threshold for small banks was 

revised most recently in December 2022 

and became effective January 1, 2023. 87 

FR 78829 (Dec. 23, 2022). The current 

CRA regulations provide that banks that, 

as of December 31 of either of the prior 

two calendar years, had assets of less 

than $1.503 billion are small banks. 

Small banks with assets of at least $376 

million as of December 31 of both of the 

prior two calendar years and less than 

$1.503 billion as of December 31 of 

either of the prior two calendar years are 

intermediate small banks. 12 CFR 

228.12(u)(1) and 345.12(u)(1). This joint 

final rule revises these thresholds. 

During the 12-month period ending 

November 2023, the CPI–W increased 

by 4.06 percent. As a result, the 

Agencies are revising 12 CFR 

228.12(u)(1) and 345.12(u)(1) to make 

this annual adjustment. Beginning 

January 1, 2024, banks that, as of 

December 31 of either of the prior two 

calendar years, had assets of less than 

$1.564 billion are small banks. Small 

banks with assets of at least $391 

million as of December 31 of both of the 

prior two calendar years and less than 

$1.564 billion as of December 31 of 

either of the prior two calendar years are 

intermediate small banks. The Agencies 

also publish current and historical assetsize thresholds on the website of the 

Federal Financial Institutions 

Examination Council at https://

www.ffiec.gov/cra/. 

Administrative Procedure Act and 

Effective Date 

Under 5 U.S.C. 553(b)(B) of the 

Administrative Procedure Act (APA), an 

agency may, for good cause, find (and 

incorporate the finding and a brief 

statement of reasons therefore in the 

rules issued) that notice and public 

procedure thereon are impracticable, 

unnecessary, or contrary to the public 

interest. 


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87896 Federal Register / Vol. 88, No. 243 / Wednesday, December 20, 2023 / Rules and Regulations 

4 12 U.S.C. 4802(a). 

5 12 U.S.C. 4802(b). 

6 5 U.S.C. 801 et seq. 

7 5 U.S.C. 801(a)(3). 8 5 U.S.C. 804(2). 

The amendments to the regulations to 

adjust the asset-size thresholds for small 

and intermediate small banks result 

from the application of a formula 

established by a provision in the 

respective CRA regulations that the 

Agencies previously published for 

comment. See 70 FR 12148 (Mar. 11, 

2005), 70 FR 44256 (Aug. 2, 2005), 71 

FR 67826 (Nov. 24, 2006), and 72 FR 

13429 (Mar. 22, 2007). As a result, 

§§ 228.12(u)(1) and 345.12(u)(1) of the 

Agencies’ respective CRA regulations 

are amended by adjusting the asset-size 

thresholds as provided for in 

§§ 228.12(u)(2) and 345.12(u)(2). 

Accordingly, the Agencies’ rules 

provide no discretion as to the 

computation or timing of the revisions 

to the asset-size criteria. For this reason, 

the Agencies have determined that 

publishing a notice of proposed 

rulemaking and providing opportunity 

for public comment are unnecessary. 

The effective date of this joint final 

rule is January 1, 2024. Under 5 U.S.C. 

553(d)(3) of the APA, the required 

publication or service of a substantive 

rule shall be made not less than 30 days 

before its effective date, except, among 

other things, as provided by the agency 

for good cause found and published 

with the rule. Because this rule adjusts 

asset-size thresholds consistent with the 

procedural requirements of the CRA 

rules, the Agencies conclude that it is 

not substantive within the meaning of 

the APA’s delayed effective date 

provision. Moreover, the Agencies find 

that there is good cause for dispensing 

with the delayed effective date 

requirement, even if it applied, because 

their current rules already provide 

notice that the small and intermediate 

small asset-size thresholds will be 

adjusted as of December 31 based on 12- 

month data as of the end of November 

each year. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

does not apply to a rulemaking when a 

general notice of proposed rulemaking 

is not required. 5 U.S.C. 603 and 604. 

As noted previously, the Agencies have 

determined that it is unnecessary to 

publish a general notice of proposed 

rulemaking for this joint final rule. 

Accordingly, the RFA’s requirements 

relating to an initial and final regulatory 

flexibility analysis do not apply. 

Paperwork Reduction Act of 1995 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3521) 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. The Agencies have determined 

that this final rule does not create any 

new, or revise any existing, collections 

of information pursuant to the 

Paperwork Reduction Act. 

Consequently, no information collection 

request will be submitted to the OMB 

for review. 

Riegle Community Development and 

Regulatory Improvement Act of 1994 

Section 302 of the Riegle Community 

Development and Regulatory 

Improvement Act of 1994 (RCDRIA) (12 

U.S.C. 4802) 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 (IDIs), consider, consistent 

with principles of safety and soundness 

and the public interest, any 

administrative burdens that such 

regulations would place on depository 

institutions, including small depository 

institutions, and customers of 

depository institutions, as well as the 

benefits of such regulations.4 In 

addition, new regulations and 

amendments to regulations that impose 

additional reporting, disclosures, or 

other new requirements on IDIs 

generally must 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.5

Because the final rule does not 

impose additional reporting, disclosure, 

or other requirements on IDIs, section 

302 of RCDRIA does not apply. 

Nevertheless, the requirements of 

section 302 of RCDRIA, and the 

administrative burdens and benefits of 

the final rule, were considered as part 

of the overall rulemaking process. 

Congressional Review Act 

FDIC 

For purposes of Congressional Review 

Act, the OMB makes a determination as 

to whether a final rule constitutes a 

‘‘major’’ rule.6 If a rule is deemed a 

‘‘major rule’’ by the OMB, the 

Congressional Review Act generally 

provides that the rule may not take 

effect until at least 60 days following its 

publication.7

The Congressional Review Act defines 

a ‘‘major rule’’ as any rule that the 

Administrator of the Office of 

Information and Regulatory Affairs of 

the OMB finds has resulted in or is 

likely to result in—(A) an annual effect 

on the economy of $100,000,000 or 

more; (B) a major increase in costs or 

prices for consumers, individual 

industries, Federal, State, or local 

government agencies or geographic 

regions; or (C) significant adverse effects 

on competition, employment, 

investment, productivity, innovation, or 

on the ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

export markets.8 As required by the 

Congressional Review Act, the FDIC 

will submit the final rule and other 

appropriate reports to Congress and the 

Government Accountability Office for 

review. 

List of Subjects 

12 CFR Part 228 

Banks, Banking, Community 

development, Credit, Federal Reserve 

System, Investments, Reporting and 

recordkeeping requirements. 

12 CFR Part 345 

Banks, Banking, Community 

development, Credit, Investments, 

Reporting and recordkeeping 

requirements. 

FEDERAL RESERVE SYSTEM 

12 CFR Chapter II 

For the reasons set forth in the 

common preamble, the Board of 

Governors of the Federal Reserve 

System amends part 228 of chapter II of 

title 12 of the Code of Federal 

Regulations as follows: 

PART 228—COMMUNITY 

REINVESTMENT (REGULATION BB) 

■ 1. The authority citation for part 228 

continues to read as follows: 

Authority: 12 U.S.C. 321, 325, 1828(c), 

1842, 1843, 1844, and 2901 et seq. 

■ 2. In § 228.12, revise paragraph (u)(1) 

to read as follows: 

§ 228.12 Definitions. 

* * * * * 

(u) * * * 

(1) Definition. Small bank means a 

bank that, as of December 31 of either 

of the prior two calendar years, had 

assets of less than $1.564 billion. 

Intermediate small bank means a small 

bank with assets of at least $391 million 

as of December 31 of both of the prior 

two calendar years and less than $1.564 

billion as of December 31 of either of the 

prior two calendar years. 

* * * * * 


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Federal Register / Vol. 88, No. 243 / Wednesday, December 20, 2023 / Rules and Regulations 87897 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Chapter III 

Authority and Issuance 

For the reasons set forth in the 

common preamble, the Federal Deposit 

Insurance Corporation amends part 345 

of chapter III of title 12 of the Code of 

Federal Regulations to read as follows: 

PART 345—COMMUNITY 

REINVESTMENT 

■ 3. The authority citation for part 345 

continues to read as follows: 

Authority: 12 U.S.C. 1814–1817, 1819– 

1820, 1828, 1831u and 2901–2908, 3103– 

3104, and 3108(a). 

■ 4. Section 345.12 is amended by 

revising paragraph (u)(1) to read as 

follows: 

§ 345.12 Definitions. 

* * * * * 

(u) * * * 

(1) Definition. Small bank means a 

bank that, as of December 31 of either 

of the prior two calendar years, had 

assets of less than $1.564 billion. 

Intermediate small bank means a small 

bank with assets of at least $391 million 

as of December 31 of both of the prior 

two calendar years and less than $1.564 

billion as of December 31 of either of the 

prior two calendar years. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, acting through the 

Secretary of the Board under delegated 

authority. 

Ann E. Misback, 

Secretary of the Board. 

Federal Deposit Insurance Corporation. 

Dated at Washington, DC, on December 13, 

2023. 

James P. Sheesley, 

Assistant Executive Secretary. 

[FR Doc. 2023–27934 Filed 12–19–23; 8:45 am] 

BILLING CODE 6210–01–P; 6714–01–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 744 

[Docket No. 231214–0304] 

RIN 0694–AJ49 

Additions to the Unverified List 

AGENCY: Bureau of Industry and 

Security, Department of Commerce. 

ACTION: Final rule. 

SUMMARY: The Bureau of Industry and 

Security (BIS) is amending the Export 

Administration Regulations (EAR) by 

adding 13 persons to the Unverified List 

(UVL). The 13 persons are added to the 

UVL on the basis that BIS was unable 

to verify their bona fides. All 13 persons 

are being added under the destination of 

the People’s Republic of China (China). 

DATES: This rule is effective: December 

19, 2023. 

FOR FURTHER INFORMATION CONTACT: 

Kevin J. Kurland, Deputy Assistant 

Secretary for Export Enforcement, 

Phone: (202) 482–4255 or by email at 

UVLRequest@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The UVL, found in supplement no. 6 

to part 744 of the EAR (15 CFR parts 

730–774), contains the names and 

addresses of foreign persons who are or 

have been parties to a transaction, as 

described in § 748.5 of the EAR, 

involving the export, reexport, or 

transfer (in-country) of items subject to 

the EAR. These foreign persons are 

added to the UVL because BIS or federal 

officials acting on BIS’s behalf were 

unable to verify their bona fides (i.e., 

legitimacy and reliability relating to the 

end-use and end user of items subject to 

the EAR) through an end-use check. 

These checks, such as a pre-license 

check (PLC) or a post-shipment 

verification (PSV), cannot be completed 

satisfactorily for reasons outside the 

U.S. Government’s control. 

There are a number of reasons why 

these checks cannot be completed to the 

satisfaction of the U.S. Government. 

Section 744.15(c)(1) of the EAR provides 

illustrative examples of those 

circumstances, including reasons 

unrelated to the cooperation of the 

foreign party subject to the end-use 

check. Such examples include: (i) 

During the conduct of an end-use check, 

the subject of the check is unable to 

demonstrate the disposition of items 

subject to the EAR; (ii) The existence or 

authenticity of the subject of an end-use 

check cannot be verified (e.g., the 

subject of the check cannot be located 

or contacted); (iii) Lack of cooperation 

by the host government authority 

prevents an end-use check from being 

conducted. 

BIS’s inability to confirm the bona 

fides of foreign persons subject to enduse checks raises concerns about the 

suitability of such persons as 

participants in future exports, reexports, 

or transfers (in-country) of items subject 

to the EAR; it also indicates a risk that 

such items may be diverted to 

prohibited end uses and/or end users. 

Under such circumstances, there may 

not be sufficient information to add the 

foreign person at issue to the Entity List 

under § 744.11 of the EAR. Therefore, 

BIS may add the foreign person to the 

UVL. 

As provided in § 740.2(a)(17) of the 

EAR, the use of license exceptions for 

exports, reexports, and transfers (incountry) involving a party or parties to 

the transaction who are listed on the 

UVL is suspended. Additionally, under 

§ 744.15(b) of the EAR, there is a 

requirement for exporters, reexporters, 

and transferors to obtain (and maintain 

a record of) a UVL statement from a 

party or parties to the transaction who 

are listed on the UVL before proceeding 

with exports, reexports, and transfers 

(in-country) to such persons, when the 

exports, reexports and transfers (incountry) are not subject to a license 

requirement. Finally, pursuant to 

§ 758.1(b)(8), Electronic Export 

Information (EEI) must be filed in the 

Automated Export System (AES) for all 

exports of tangible items subject to the 

EAR where any party to the transaction, 

as described in § 748.5(d) through (f), is 

listed on the UVL. 

Requests for the removal of a UVL 

entry must be made in accordance with 

§ 744.15(d) of the EAR. Decisions 

regarding the removal or modification of 

a UVL entry will be made by the Deputy 

Assistant Secretary for Export 

Enforcement, based on a demonstration 

by the listed person of their bona fides. 

Additions to the UVL 

This rule adds 13 persons to the UVL 

by amending supplement no. 6 to part 

744 of the EAR to include their names 

and addresses. BIS is adding these 

persons pursuant to § 744.15(c) of the 

EAR. This final rule implements the 

decision to add the following 13 persons 

located in China to the UVL: 

China 

• Beijing Jin Sheng Bo Yue 

Technology Co., Ltd.; 

• Beijing Shengbo Xietong 

Technology Co., Ltd.; 

• Fulian Precision Electronics 

(Tianjin) Co., Ltd.; 

• Guangzhou Xinwei Transportation 

Co., Ltd.; 

• Guangzhou Xinyun Intelligent 

Technology Co., Ltd.; 

• Nanning Fulian Fu Gui Precision 

Industrial Co., Ltd.; 

• Ningbo MOOF Trading Co., Ltd.; 

• Plexus (Xiamen) Co., Ltd.; 

• PNC Systems (Jiangsu) Co., Ltd.; 

• Shenzhen Bozhitongda Technologic 

Co., Ltd.; 

• Shenzhen Jia Li Chuang Tech 

Development Co., Ltd.; 

• Shenzhen Jingelang Co., Ltd.; and 

• Xi’An Yierda Co., Ltd. 


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