Disclosure of Financial and Other Information by FDIC-Insured State Nonmember Banks
Final rule.
CFR Part: "12 CFR Part 350"
RIN Number: "RIN 3064-AE65"
Citation: "84 FR 9698"
Page Number: "9698"
"Rules and Regulations"
Agency: "
SUMMARY: The
DATES: This rule will be effective
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
I. Policy Objectives The policy objective of the final rule is to simplify the
II. Background
Part 350 was adopted by the FDIC Board of Directors on
FOOTNOTE 1 See 52 FR 49379 (
The annual disclosure statement for a particular year must be prepared, and made available to the public, by
In adopting part 350, the
After the
FOOTNOTE 2 See 60 FR 66866 (
FOOTNOTE 3 See 63 FR 37630 (
FOOTNOTE 4 See 82 FR 8082 (
With advancements in information technology since part 350 was adopted, including widespread public access to the internet (including through public libraries for individuals without their own direct personal access to the internet), information about the financial condition of individual insured depository institutions is now reliably and directly offered to the public through the
The Call Report contains an institution's balance sheet, income statement, and supplemental schedules that disclose additional details about the major categories of assets and liabilities, regulatory capital, and other financial information. Since the successful deployment of the
FOOTNOTE 5 https://cdr.ffiec.gov/public/ManageFacsimiles.aspx. END FOOTNOTE
The UBPR is an analytical tool created for bank supervisory, examination, and management purposes that shows the impact of management decisions and economic conditions on a bank's performance and balance-sheet composition. The content of the UBPR is calculated each quarter primarily from Call Report data. UBPRs for individual institutions are available to the public via the CDR PDD website. An institution's UBPR is usually published online within a day after its Call Report has been filed with and accepted by the CDR. Online access to an institution's UBPR each quarter complements the public's use of the institution's Call Report and further expands upon the amount of publicly available financial data for an institution beyond the limited financial information provided in the annual disclosure statement required by part 350. The public is able to easily locate the Call Report and the UBPR for a bank through the FDIC BankFind tool, which is available on the
FOOTNOTE 6 https://research.fdic.gov/bankfind/. END FOOTNOTE
In addition, on a monthly basis, the
FOOTNOTE 7 https://www5.fdic.gov/EDO/index.html. END FOOTNOTE
III. The Proposal
Under section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA), /8/ the
FOOTNOTE 8 Public Law 104-208 (1996), codified at 12 U.S.C. 3311. END FOOTNOTE
FOOTNOTE 9 See 80 FR 32046 (
IV. Comments
Consistent with the objectives of section 2222 of EGRPRA, on
FOOTNOTE 10 See 83 FR 53829 (
The
V. Expected Effects
The removal of the requirement that each
FOOTNOTE 11 Data from the
The final rule is expected to reduce recordkeeping, reporting, and disclosure requirements for
FOOTNOTE 12 The annual cost per institution is estimated using the 75th percentile hourly wage for financial analysts and management occupations in the depository credit intermediation industry as of
Hourly wages are from the
FOOTNOTE 13 This equals 524 *
In addition to the directly measurable cost savings, another potential benefit of the final rule is that it frees up institution staff time that would otherwise have been spent complying with part 350. Theoretically, time previously spent complying with part 350 may now be spent on another task of higher value to the institution. This potential effect is difficult to accurately estimate with available information, but it is likely to be small given that the disclosure burden imposed by part 350 is a relatively small percentage of noninterest expenses.
The final rule removes a disclosure requirement for affected institutions; however, the
VI. Alternatives Considered
The
VII. Regulatory Analysis and Procedure
A. The Paperwork Reduction Act
In accordance with the requirements of the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-3521), the
B. The Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) generally requires that, in connection with a rulemaking, an agency prepare and make available for public comment a final regulatory flexibility analysis describing the impact of the final rule on small entities. /14/ A regulatory flexibility analysis is not required; however, if the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. The
FOOTNOTE 14 5 U.S.C.
FOOTNOTE 15 The SBA defines a small banking organization as having
As of
FOOTNOTE 16 Data from the
The final rule is expected to reduce recordkeeping, reporting, and disclosure requirements for small
FOOTNOTE 17 The annual cost per institution is estimated using the 75th percentile hourly wage for financial analysts and management occupations in the depository credit intermediation industry as of
Hourly wages are from the
FOOTNOTE 18 This equals 403 *
Also as described in Section IV above, in addition to the directly measurable cost savings, another potential benefit of the final rule is that it frees up institution staff time that would otherwise have been spent complying with part 350. While this potential effect is difficult to accurately estimate with available information, it is likely to be small given that the disclosure burden imposed by part 350 is a relatively small percentage of noninterest expenses for small
The final rule removes a disclosure requirement for affected institutions; however, the
Based on the information above, the
C. Small Business Regulatory Enforcement Fairness Act
The OMB has determined that the final rule is not a "major rule" within the meaning of the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA). /19/ As required by SBREFA, the
FOOTNOTE 19 5 U.S.C.
D. Plain Language
Section 722 of the Gramm-Leach-Bliley Act, Public Law 106-102, 113 Stat. 1338, 1471, 12 U.S.C. 4809, requires each Federal banking agency to use plain language in all of its proposed and final rules published after
E. The Economic Growth and Regulatory Paperwork Reduction Act
Under section 2222 of EGRPRA, the
F.
Under section 302(b) of the
List of Subjects in 12 CFR Part 350 Accounting, Banks, Banking, Reporting and recordkeeping requirements.
Authority and Issuance
PART 350--[REMOVED AND RESERVED]
For the reasons stated in the preamble, and under the authority of 12 U.S.C 1817(a)(1), 1819 "Seventh" and "Tenth," the Board of Directors of the
Dated at
By order of the Board of Directors.
Executive Secretary.
[FR Doc. 2019-04944 Filed 3-15-19;
BILLING CODE 6714-01-P
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