Vol. 82 Thursday, 

No. 163 August 24, 2017 

Part XXV 

Federal Deposit Insurance Corporation 

Semiannual Regulatory Agenda 

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40438 Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Unified Agenda 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Ch. III 

Semiannual Agenda of Regulations 

AGENCY: Federal Deposit Insurance 

Corporation. 

ACTION: Semiannual regulatory agenda. 

SUMMARY: The Federal Deposit 

Insurance Corporation (FDIC) is hereby 

publishing items for the Spring 2017 

Unified Agenda of Federal Regulatory 

and Deregulatory Actions. The agenda 

contains information about FDIC’s 

current and projected rulemakings, 

existing regulations under review, and 

completed rulemakings. 

FOR FURTHER INFORMATION CONTACT: 

Robert E. Feldman, Executive Secretary, 

Federal Deposit Insurance Corporation, 

550 17th Street NW., Washington, DC 

20429. 

SUPPLEMENTARY INFORMATION: Twice 

each year, the FDIC publishes an agenda 

of regulations to inform the public of its 

regulatory actions and to enhance 

public participation in the rulemaking 

process. Publication of the agenda is in 

accordance with the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.). 

The FDIC amends its regulations under 

the general rulemaking authority 

prescribed in section 9 of the Federal 

Deposit Insurance Act (12 U.S.C. 1819) 

and under specific authority granted by 

the Act and other statutes. 

Proposed Rule Stage 

Enhanced Cyber Risk Management 

Standards (3064–AE45) 

On October 26, 2016, the Board of 

Governors of the Federal Reserve 

System, the Office of the Comptroller of 

the Currency, and the Federal Deposit 

Insurance Corporation published in the 

Federal Register an advanced notice of 

proposed rulemaking (ANPRM) 

regarding enhanced cyber risk 

management standards for large and 

interconnected entities under their 

supervision and those entities’ service 

providers. The ANPRM addresses five 

categories of cyber standards: Cyber risk 

governance; cyber risk management; 

internal dependency management; 

external dependency management; and 

incident response, cyber resilience, and 

situational awareness. Due to the range 

and complexity of the issues addressed 

in the ANPRM the public comment 

period was extended until February 17, 

2017. This action allowed interested 

persons additional time to analyze the 

proposal and prepare their comments. 

* Real Estate Appraisals (3064–AE56) 

The OCC, Board, FDIC, and NCUA 

(collectively, the Agencies) are seeking 

comment on a proposed rule to amend 

the agencies’ regulations regarding 

appraisals of real estate, adopted 

pursuant to title XI of the Financial 

Institutions Reform, Recovery, and 

Enforcement Act of 1989 (Title XI). Title 

XI requires the agencies to adopt 

regulations regarding the performance of 

appraisals used in connection with 

federally related transactions (Title XI 

appraisals) within the jurisdiction of 

each agency. As discussed below, the 

agencies received comments requesting 

that the agencies require title XI 

appraisals for fewer transactions as part 

of a regulatory review process mandated 

by the Economic Growth and Regulatory 

Paperwork Reduction Act. The 

proposed amendments would increase 

the threshold level at or below which 

title XI appraisals are not required for 

commercial real estate loans to 

$400,000, as defined in this regulation. 

For commercial real estate loans below 

the threshold, the amended rule would 

require institutions to obtain an 

evaluation of the real property collateral 

consistent with safe and sound banking 

practices, if the institution does not 

obtain a title XI appraisal. The agencies 

also propose to amend their appraisal 

regulations to require that appraisals for 

federally related transactions are subject 

to appropriate review for compliance 

with the Uniform Standards of 

Professional Appraisal Practice, as 

required by an amendment to title XI 

included in section 1473(e) of the DoddFrank Wall Street Reform and Consumer 

Protection Act. 

* Management Official Interlocks (3064– 

AE57) 

The OCC, Board, and the FDIC are 

seeking comment on a joint proposed 

rule to revise their respective 

regulations that implement the 

Depository Institution Management 

Interlocks Act (DIMIA). The proposed 

rule would adjust asset thresholds for 

the DIMIA major asset prohibition, 

which prohibits management officials 

for depository institutions with assets in 

excess of specified levels from engaging 

in management interlocks (an 

individual may not serve as an official 

of two unaffiliated depository 

institutions with assets in excess of the 

specified levels). The levels are 

currently set at $2.5 billion and $1.5 

billion. Based on inflation or market 

changes, current inflation adjusted 

thresholds would be $3.6 billion and 

$2.16 billion. 

* Community Reinvestment Act 

Regulations (3064–AE58) 

The Office of the Comptroller of the 

Currency, Board of Governors of the 

Federal Reserve System, and the Federal 

Deposit Insurance Corporation propose 

(1) To amend their regulations 

implementing the Community 

Reinvestment Act to update the existing 

definitions of home mortgage loan and 

consumer loan, related cross references, 

and the public file content requirements 

to reflect recent revisions made by the 

Consumer Financial Protection Bureau 

to Regulation C, which implements the 

Home Mortgage Disclosure Act, and (2) 

to remove obsolete references to the 

Neighborhood Stabilization Program. 

Regulatory Capital Rules: Simplification 

of Generally Applicable Rules (3064– 

AE59) 

The OCC, Board, and FDIC (the 

Agencies) seek comment on a joint 

proposed rule to revise the generally 

applicable capital rules with the goal of 

meaningfully reducing regulatory 

burden on community banking 

organizations while at the same time 

maintaining safety and soundness and 

the quality and quantity of regulatory 

capital in the banking system. The 

proposal includes (1) Replacing the 

framework’s complex treatment of high 

volatility commercial real estate 

(HVCRE) exposures with a more 

straightforward treatment for most 

acquisition, development, or 

construction (ADC) loans; (2) 

simplifying the current regulatory 

capital treatment for mortgage servicing 

assets (MSAs), timing difference 

deferred tax assets (DTAs), and holdings 

of regulatory capital instruments issued 

by financial institutions; and (3) 

simplifying the current limitations on 

minority interests in regulatory capital. 

* Reporting and Recordkeeping 

Requirements for Covered Trading 

Activities (3064–AE60) 

The OCC, Board, FDIC, CFTC, and 

SEC are requesting comment on a 

proposed rule that would modify the 

reporting and recordkeeping 

requirements for covered trading 

activities under appendix A of the final 

rule implementing section 13 of the 

Bank Holding Company Act of 1956, 

which was added by section 619 of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act. The Agencies 

adopted a final rule implementing 

section 13 that became effective on 

April 1, 2014. In appendix A of the final 

rule, the Agencies said they would 

review the data collected and revise the 

collection requirement as appropriate 

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Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Unified Agenda 40439 

based on a review of the data collected 

prior to September 30, 2015. 

* Source of Strength (3064–AE61) 

The OCC, Board, and FDIC (the 

appropriate Federal banking agencies) 

are developing a joint Notice of 

Proposed Rulemaking which will be 

published in the Federal Register. The 

rule, when finalized, will implement 

section 616(d) of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (Dodd-Frank Act). That section of 

the Dodd-Frank Act requires the 

appropriate Federal banking agencies to 

jointly issue final rules that ensure that 

parent companies of subsidiary insured 

depository institutions serve as a source 

of financial strength for such 

institutions. 

Final Rule Stage 

Net Stable Funding Ratio: Liquidity Risk 

Measurement Standards and Disclosure 

Requirements (3064–AE44) 

The Office of the Comptroller of the 

Currency, the Board of Governors of the 

Federal Reserve System, and the Federal 

Deposit Insurance Corporation invited 

comment on a proposed rule that would 

implement a stable funding 

requirement, the net stable funding ratio 

(NSFR), for large and internationally 

active banking organizations. The 

proposed NSFR requirement is designed 

to reduce the likelihood that disruptions 

to a banking organization’s regular 

sources of funding will compromise its 

liquidity position, as well as to promote 

improvements in the measurement and 

management of liquidity risk. The 

proposed rule would also amend certain 

definitions in the liquidity coverage 

ratio rule that are also applicable to the 

NSFR. The proposed NSFR requirement 

would apply beginning on January 1, 

2018, to bank holding companies, 

certain savings and loan holding 

companies, and depository institutions 

that, in each case, have $250 billion or 

more in total consolidated assets or $10 

billion or more in total on-balance sheet 

foreign exposure, and to their 

consolidated subsidiaries that are 

depository institutions with $10 billion 

or more in total consolidated assets. In 

addition, the Board proposed a modified 

NSFR requirement for bank holding 

companies and certain savings and loan 

holding companies that, in each case, 

have $50 billion or more, but less than 

$250 billion, in total consolidated assets 

and less than $10 billion in total onbalance sheet foreign exposure. Neither 

the proposed NSFR requirement nor the 

proposed modified NSFR requirement 

would apply to banking organizations 

with consolidated assets of less than $50 

billion and total on-balance sheet 

foreign exposure of less than $10 

billion. A bank holding company or 

savings and loan holding company 

subject to the proposed NSFR 

requirement or modified NSFR 

requirement would be required to 

publicly disclose the company’s NSFR 

and the components of its NSFR each 

calendar quarter. 

* Restrictions on Qualified Financial 

Contracts of Certain FDIC-Supervised 

Institutions; Revisions to the Definition 

of Qualifying Master Netting Agreement 

and Related Definitions (3064–AE46) 

The FDIC is proposing to add a new 

part 382 to its rules to improve the 

resolvability of systemically important 

U.S. banking organizations and 

systemically important foreign banking 

organizations and enhance the 

resilience and the safety and soundness 

of certain state savings associations and 

state-chartered banks that are not 

members of the Federal Reserve System 

(state non-member banks or SNMBs) for 

which the FDIC is the primary federal 

regulator (together, FSIs or FDICsupervised institutions). Under this 

proposed rule, covered FSIs would be 

required to ensure that covered 

qualified financial contracts (QFCs) to 

which they are a party provide that any 

default rights and restrictions on the 

transfer of the QFCs are limited to the 

same extent as they would be under the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act and the 

Federal Deposit Insurance Act. In 

addition, covered FSIs would generally 

be prohibited from being party to QFCs 

that would allow a QFC counterparty to 

exercise default rights against the 

covered FSI based on the entry into a 

resolution proceeding under the DoddFrank Act, FDI Act, or any other 

resolution proceeding of an affiliate of 

the covered FSI. 

The proposal would also amend the 

definition of qualifying master netting 

agreement in the FDIC’s capital and 

liquidity rules, and certain related terms 

in the FDIC’s capital rules. These 

proposed amendments are intended to 

ensure that the regulatory capital and 

liquidity treatment of QFCs to which a 

covered FSI is party would not be 

affected by the proposed restrictions on 

such QFCs. The requirements of this 

proposed rule are substantively 

identical to those contained in notice of 

proposed rulemaking issued by the 

Board of Governors of the Federal 

Reserve System on May 3, 2016, 

regarding covered entities, and the 

notice of proposed rulemaking issued by 

the Office of the Comptroller of the 

Currency on August 19, 2016, regarding 

covered banks. 

* Removal of Transferred OTS 

Regulations Regarding Minimum 

Security Procedures Amendments 

(3064–AE47) 

The Federal Deposit Insurance 

Corporation proposed to rescind and 

remove a part from the Code of Federal 

Regulations entitled Security 

Procedures and to amend FDIC 

regulations to make the removed Office 

of Thrift Supervision regulations 

applicable to State savings associations. 

* Removal of Transferred OTS 

Regulations Regarding Consumer 

Protection in Sales of Insurance and 

Amendments to FDIC Consumer 

Protection in Sales of Insurance 

Regulation (3064–AE49) 

The Federal Deposit Insurance 

Corporation (FDIC) proposed to rescind 

and remove from the Code of Federal 

Regulations 12 CFR part 390, subpart I, 

entitled Consumer Protection in Sales of 

Insurance. This subpart was included in 

the regulations that were transferred to 

the FDIC from the Office of Thrift 

Supervision on July 21, 2011, in 

connection with the implementation of 

applicable provisions of title III of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act. The 

requirements for State savings 

associations in part 390, subpart I are 

substantively similar to the 

requirements in the FDIC’s 12 CFR part 

343, which is also entitled Consumer 

Protection in Sales of Insurance and is 

applicable for all insured depository 

institutions (IDIs) for which the FDIC 

has been designated the appropriate 

Federal banking agency. 

The FDIC proposed to rescind in its 

entirety part 390, subpart I and to 

modify the scope of part 343 to include 

State savings associations and their 

subsidiaries to conform to and reflect 

the scope of the FDIC’s current 

supervisory responsibilities as the 

appropriate Federal banking agency. 

The FDIC also proposed to define FDICsupervised insured depository 

institution or institution and State 

savings association. Finally, the FDIC 

proposed to transfer an anticoercion and 

antitying provision from part 390, 

subpart I that is applicable to State 

savings associations. Upon removal of 

part 390, subpart I, the Consumer 

Protection in Sales of Insurance, 

regulations applicable for all IDIs for 

which the FDIC has been designated the 

appropriate Federal banking agency will 

be found at 12 CFR part 343. 

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40440 Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Unified Agenda 

* Loans in Areas Having Special Flood 

Hazards—Private Flood Insurance 

(3064–AE50) 

The Office of the Comptroller of the 

Currency, the Board of Governors of the 

Federal Reserve System, the Federal 

Deposit Insurance Corporation, the 

Farm Credit Administration, and the 

National Credit Union Administration 

have issued a new proposal to amend 

their regulations regarding loans in 

areas having special flood hazards to 

implement the private flood insurance 

provisions of the Biggert-Waters Flood 

Insurance Reform Act of 2012. 

Specifically, the proposed rule would 

require regulated lending institutions to 

accept policies that meet the statutory 

definition of private flood insurance in 

the Biggert-Waters Act and permit 

regulated lending institutions to accept 

flood insurance provided by private 

insurers that does not meet the statutory 

definition of private flood insurance on 

a discretionary basis, subject to certain 

restrictions. 

* Regulatory Capital Rules: To Rescind 

the FDIC’s Capital Rules That Are No 

Longer Effective Following the 

Implementation of Capital Rules 

Consistent With Basel III (3064–AE51) 

This final rule rescinds the capital 

regulations in part 325 and subparts Y 

and Z of part 390 of the FDIC’s codified 

rules (the superseded capital rules) that 

were no longer effective following the 

January 1, 2015, implementation of the 

capital rules consistent with the Basel 

III initiatives. The final rule also makes 

conforming changes to sections in the 

FDIC’s codified rules that refer to the 

superseded capital rules. The FDIC has 

concluded that good cause exists to 

publish this rule as final without a 

period of notice and comment and with 

an effective date as of the date of its 

publication in the Federal Register 

because this rule rescinds the 

superseded capital rules and other 

sections of the FDIC’s codified rules that 

refer to the superseded capital rules and 

imposes no new requirement on FDICsupervised institutions. 

* Revision of the FDIC’s Freedom of 

Information Act Regulations (3064– 

AE53) 

This rule amends the Federal Deposit 

Insurance Corporation’s regulations 

under the Freedom of Information Act 

(FOIA) to incorporate certain changes 

made to the FOIA by the FOIA 

Improvement Act of 2016. In addition, 

this rule amends certain provisions to 

reflect changes brought about by prior 

amendments to the FOIA that had been 

incorporated into Agency practice and 

corrects inaccurate contact information 

and adjusts numbering and lettering of 

current provisions because of additions 

to the regulations. 

* Recordkeeping Requirements for 

Qualified Financial Contracts (3064– 

AE54) 

The FDIC proposes to amend its 

regulations regarding Recordkeeping 

Requirements for Qualified Financial 

Contracts (Part 371) which requires 

insured depository institutions (IDIs) in 

a troubled condition to keep records 

relating to qualified financial contracts 

(QFCs) to which they are party. The 

proposed rule would (i) Simplify QFC 

recordkeeping for large banks by 

aligning requirements with the rule of 

the US Treasury governing QFC 

recordkeeping of certain non-bank 

affiliates; (ii) require such large banks to 

keep QFC records of certain of their 

subsidiaries; (iii) for all other IDIs 

subject to part 371, add and delete a 

limited number of data requirements 

and make certain formatting changes 

with respect to the QFC recordkeeping 

requirements; (iv) provide additional 

time for certain IDIs in a troubled 

condition to comply with part 371; and 

(v) include certain other changes, 

including changes relating to certain 

extension procedures and clarifications 

relating to the timing for creation of 

daily records. 

Long-Term Actions 

Incentive-Based Compensation 

Arrangements (3064–AD86) 

The OCC, Board, FDIC, FHFA, NCUA, 

and SEC (the Agencies) sought comment 

on a joint proposed rule to revise the 

proposed rule the Agencies published in 

the Federal Register on April 14, 2011, 

and to implement section 956 of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act. Section 956 

generally requires that the Agencies 

jointly issue regulations or guidelines: 

(1) Prohibiting incentive-based payment 

arrangements that the Agencies 

determine encourage inappropriate risks 

by certain financial institutions by 

providing excessive compensation or 

that could lead to material financial 

loss; and (2) requiring those financial 

institutions to disclose information 

concerning incentive-based 

compensation arrangements to the 

appropriate Federal regulator. 

Treatment of Certain Collateralized Debt 

Obligations Backed Primarily by Trust 

Preferred Securities; Prohibitions and 

Restrictions on Certain Interests in 

Hedge Funds and Private Equity Funds 

(3064–AE11) 

The Office of the Comptroller of the 

Currency, the Federal Reserve Board, 

the Federal Deposit Insurance 

Corporation, the U.S. Commodity 

Futures Trading Commission, and the 

Securities Exchange Commission 

(individually, an Agency, and 

collectively, the Agencies) will be 

adopting an interim final rule that 

would permit banking entities to retain 

investments in certain pooled 

investment vehicles that invested their 

offering proceeds primarily in trust 

preferred or subordinated debt 

securities issued by community banking 

organizations of the type grandfathered 

under section 171 of the Dodd-Frank 

Wall Street Reform and Consumer 

Protection Act. The interim final rule is 

a companion rule to the final rules 

adopted by the Agencies to implement 

section 13 of the Bank Holding 

Company Act of 1956, which was added 

by section 619 of the Dodd-Frank Act. 

Removal of Transferred Office of Thrift 

Supervision Regulations Regarding 

Lending and Investment and 

Amendments to FDIC Rules and 

Regulations (3064–AE22) 

In this rulemaking, the Federal 

Deposit Insurance Corporation (FDIC) 

will be proposing to rescind and remove 

from the Code of Federal Regulations 12 

CFR part 390, subpart P, entitled 

Lending and Investment (part 390, 

subpart P). This subpart was included in 

the regulations that were transferred to 

the FDIC from the Office of Thrift 

Supervision on July 21, 2011, in 

connection with the implementation of 

applicable provisions of title III of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act. Upon removal 

of part 390, subpart P, all insured 

depository institutions for which the 

FDIC is the appropriate Federal banking 

agency will follow the safety and 

soundness standards contained in 12 

CFR part 364 of the FDIC’s Rules and 

Regulations and the real-estate lending 

standards found in 12 CFR part 365 of 

the FDIC’s Rules. 

Transferred Office of Thrift Supervision 

Regulations Regarding Fiduciary Powers 

of State Savings Associations (3064– 

AE23) 

The Federal Deposit Insurance 

Corporation (FDIC) will be proposing to 

rescind and remove from the Code of 

Federal Regulations 12 CFR part 390 

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Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Unified Agenda 40441 

subpart J, entitled Fiduciary Powers of 

State Savings Associations and all 

references thereto, and amend certain 

sections of 12 CFR parts 333 and 303 

regarding consent to exercise trust 

powers to reflect their applicability to 

State savings associations. Part 390 

subpart J was included in the 

regulations that were transferred to the 

FDIC from the Office of Thrift 

Supervision on July 21, 2011, in 

connection with the implementation of 

applicable provisions of title III of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act. Upon removal 

of part 390 subpart J from the FDIC rules 

and regulations and adopting of the 

amendment to parts 333 and 303 

proposed herein, all State nonmember 

banks and State savings associations 

seeking consent to exercise trust powers 

not previously granted by its chartering 

authority will be required to comply 

with FDIC rules governing applications 

for consent to exercise trust powers. 

Alternatives to Credit Ratings With 

Respect to Permissible Activities for 

Foreign Branches of Insured State 

Nonmember Banks and Pledge of Assets 

by Insured Domestic Branches of 

Foreign Banks (3064–AE36) 

The FDIC sought public comment on 

a proposed rule to amend its 

international banking regulations (Part 

347) consistent with section 939A of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank 

Act) and the FDIC’s authority under 

section 5(c) of the Federal Deposit 

Insurance Act. Section 939A directs 

each Federal agency to review and 

modify regulations that reference credit 

ratings. The rule would amend the 

provisions of subparts A and B of part 

347 that reference credit ratings. 

Subpart A, which sets forth the FDIC’s 

requirements for insured State 

nonmember banks that operate foreign 

branches, would be amended to replace 

references to credit ratings in the 

definition of ‘‘investment grade’’ with a 

standard of creditworthiness that has 

been adopted in other Federal 

regulations that conform with section 

939A. Subpart B would be amended to 

revise the FDIC’s asset pledge 

requirement for insured U.S. branches 

of foreign banks. The eligibility criteria 

for the types of assets that foreign banks 

may pledge would be amended by 

replacing the references to credit ratings 

with the revised definition of 

investment grade. The rule would apply 

this investment grade standard to each 

type of pledgeable asset, establish a 

liquidity requirement for such assets, 

and subject them to a fair value 

discount. The proposed rule would also 

introduce cash as a new asset type that 

foreign banks may pledge under subpart 

B and create a separate asset category 

expressly for debt securities issued by 

government sponsored enterprises. 

Covered Broker-Dealer Provisions Under 

Title II of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act 

(3064–AE39) 

The Federal Deposit Insurance 

Corporation and the Securities and 

Exchange Commission, in accordance 

with section 205(h) of the Dodd-Frank 

Wall Street Reform and Consumer 

Protection Act, jointly proposed a rule 

to implement provisions applicable to 

the orderly liquidation of covered 

brokers and dealers under title II of the 

Dodd-Frank Act. 

Completed Actions 

Regulatory Capital Rules, Liquidity 

Coverage Ratio: Revisions to the 

Definition of Qualifying Master Netting 

Agreement and Related Definitions 

(3064–AE30) 

The FDIC is adopting a final rule that 

amends the definition of qualifying 

master netting agreement under the 

regulatory capital rules and the liquidity 

coverage ratio rule. In this final rule, the 

FDIC also is amending the definitions of 

collateral agreement, eligible margin 

loan, and repo-style transaction under 

the regulatory capital rules. These 

amendments are designed to ensure that 

the regulatory capital and liquidity 

treatment of certain financial contracts 

generally would not be affected by 

implementation of special resolution 

regimes in non-U.S. jurisdictions that 

are substantially similar to the U.S. 

resolution framework or by changes to 

the International Swaps and Derivative 

Association Master Agreement that 

provide for contractual submission to 

such regimes. The Office of the 

Comptroller of the Currency and the 

Board of Governors of the Federal 

Reserve System issued in December 

2014, a joint interim final rule that is 

substantially identical to this final rule. 

Recordkeeping for Timely Deposit 

Insurance Determination (3064–AE33) 

The FDIC is adopting a final rule to 

facilitate prompt payment of FDICinsured deposits when large insured 

depository institutions fail. The final 

rule requires each insured depository 

institution that has two million or more 

deposit accounts to (1) Configure its 

information technology system to be 

capable of calculating the insured and 

uninsured amount in each deposit 

account by ownership right and 

capacity, which would be used by the 

FDIC to make deposit insurance 

determinations in the event of the 

institution’s failure, and (2) maintain 

complete and accurate information 

needed by the FDIC to determine 

deposit insurance coverage with respect 

to each deposit account, except as 

otherwise provided. 

Expanded Examination Cycle for 

Certain Small Insured Depository 

Institutions and U.S. Branches and 

Agencies of Foreign Banks (3064–AE42) 

The Office of the Comptroller of the 

Currency, the Federal Reserve System, 

and the Federal Deposit Insurance 

Corporation (collectively, the Agencies) 

are jointly adopting as final and without 

change the agencies’ interim final rules 

published in the Federal Register on 

February 29, 2016, that implemented 

section 83001 of the Fixing America’s 

Surface Transportation Act (FAST Act). 

Section 83001 of the FAST Act permits 

the agencies to conduct a full-scope, 

onsite examination of qualifying insured 

depository institutions with less than $1 

billion in total assets no less than once 

during each 18-month period. Prior to 

enactment of the FAST Act, only 

qualifying insured depository 

institutions with less than $500 million 

in total assets were eligible for an 18- 

month on-site examination cycle. The 

final rules, like the interim final rules, 

generally allow well capitalized and 

well managed institutions with less than 

$1 billion in total assets to benefit from 

the extended 18-month examination 

schedule. In addition, the final rules 

adopt as final 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. Finally, through 

this rulemaking, the FDIC has integrated 

its regulations regarding the frequency 

of safety and soundness examinations 

for State nonmember banks and State 

savings associations. 

* Guidelines Establishing Standards for 

Corporate Governance and Risk 

Management for Covered Institutions 

With Average Total Consolidated Assets 

of $10 Billion or More (3064–AE48) 

To improve corporate governance and 

risk management at insured State banks, 

State savings associations, and insured 

State branches of foreign banks that 

have average total consolidated assets of 

$10 billion or more, the FDIC is 

proposing to issue new corporate 

governance and risk management 

guidelines under its safety and 

soundness authority provided by 

section 39 of the Federal Deposit 

Insurance Act. The proposed Guidelines 

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40442 Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Unified Agenda 

would be enforceable under section 39. 

The FDIC also proposes to amend parts 

308 and 364 of its regulations to 

implement the proposed Guidelines. 

* Rules of Practice and Procedure 

(3064–AE52) 

The Federal Deposit Insurance 

Corporation is adjusting the maximum 

amount of each civil money penalty 

within its jurisdiction to account for 

inflation. This action is required by the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015. The FDIC is also amending its 

rules of practice and procedure under 

12 CFR part 308 to cross-reference the 

annual adjustments that will be 

published in the Federal Register and to 

correct a technical error from the 

previous inflation-adjustment 

rulemaking. 

* Disclosure and Reporting of CRARelated Agreements (3064–AE55) 

The Office of the Comptroller of the 

Currency, the Board of Governors of the 

Federal Reserve System, and the Federal 

Deposit Insurance Corporation 

(collectively, the Agencies) are inviting 

comment on a notice of proposed 

rulemaking that would amend the 

Agencies’ rules on disclosure and 

reporting of Community Reinvestment 

Act-related agreements to remove the 

quarterly reporting requirement and an 

obsolete provision. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

FEDERAL DEPOSIT INSURANCE CORPORATION—PROPOSED RULE STAGE

Sequence No. Title Regulation 

Identifier No. 

374 .................... 12 CFR 324 Regulatory Capital Rules: Simplification of Generally Applicable Rules .................................... 3064–AE59 

FEDERAL DEPOSIT INSURANCE 

CORPORATION (FDIC) 

Proposed Rule Stage 

374. • Regulatory Capital Rules: 

Simplification of Generally Applicable 

Rules 

Legal Authority: 12 U.S.C. 

1819(a)(Tenth); 12 U.S.C. 1831o; 12 

U.S.C. 3907; 12 U.S.C. 5371 

Abstract: The OCC, Board, and FDIC 

(the Agencies) seek comment on a joint 

proposed rule to revise the generally 

applicable capital rules with the goal of 

meaningfully reducing regulatory 

burden on community banking 

organizations while at the same time 

maintaining safety and soundness and 

the quality and quantity of regulatory 

capital in the banking system. The 

proposal includes (1) Replacing the 

framework’s complex treatment of high 

volatility commercial real estate 

(HVCRE) exposures with a more 

straightforward treatment for most 

acquisition, development, or 

construction (ADC) loans; (2) 

simplifying the current regulatory 

capital treatment for mortgage servicing 

assets (MSAs), timing difference 

deferred tax assets (DTAs), and holdings 

of regulatory capital instruments issued 

by financial institutions; and (3) 

simplifying the current limitations on 

minority interests in regulatory capital. 

Timetable: 

Action Date FR Cite 

NPRM .................. 09/00/17 

Regulatory Flexibility Analysis 

Required: Yes. 

Agency Contact: Bobby R. Bean, 

Associate Director, Federal Deposit 

Insurance Corporation, 550 17th Street 

NW., Washington, DC 20429, Phone: 

202 898–3575, Email: bbean@fdic.gov. 

Ryan Billingsley, Chief, Capital Policy 

Section, Federal Deposit Insurance 

Corporation, 550 17th Street NW., 

Washington, DC 20429, Phone: 202 898– 

3797, Email: rbillingsley@fdic.gov. 

Benedetto Bosco, Chief, Capital Policy 

Section, Federal Deposit Insurance 

Corporation, 550 17th Street NW., 

Washington, DC 20459, Phone: 202 898– 

6853, Email: bbosco@fdic.gov. 

Michael Phillips, Counsel, Federal 

Deposit Insurance Corporation, 550 17th 

Street NW., Washington, DC 20429, 

Phone: 202 898–3581, Email: 

mphillips@fdic.gov. 

Rachel J. Ackmann, Senior Attorney, 

Federal Deposit Insurance Corporation, 

550 17th Street NW., Washington, DC 

20429, Phone: 202 898–6858, Email: 

rackmann@fdic.gov. 

Catherine S. Wood, Counsel, Federal 

Deposit Insurance Corporation, 550 17th 

Street NW., Washington, DC 20459, 

Phone: 202 898–3788, Email: cawood@

fdic.gov. 

RIN: 3064–AE59 

[FR Doc. 2017–17016 Filed 8–23–17; 8:45 am] 

BILLING CODE 6714–01–P 

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