Regulatory Capital Rule: Simplifications to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996; Revised Effective Date
Final rule, announcement of effective date, early adoption.
CFR Part: "12 CFR Part 3"; "12 CFR Part 217"; "12 CFR Part 324"
RIN Number: "RIN 1557-AE70"; "RIN 7100-AE74"; "RIN 3064-AF18"
Citation: "84 FR 61804"
Document Number: "Docket ID OCC-2017-0018"; "Regulation Q; Docket No. R-1576"
Page Number: "61804"
"Rules and Regulations"
Agency: "
SUMMARY:
DATES:
This rule is effective
FOR FURTHER INFORMATION CONTACT:
OCC:
Board:
SUPPLEMENTARY INFORMATION:
FOOTNOTE 1 See 84 FR 35234 (
The simpler capital requirements described above are implemented through the Capital Simplifications Final Rule via amendments to 12 CFR 3.21, 3.22, 3.300, 217.21, 217.22, 217.300(b) and (d), 324.21, 324.22, and 324.300 that were originally effective
The agencies are adopting this direct final rule to permit non-advanced approaches banking organizations to implement the sections of the Capital Simplifications Final Rule that were originally effective on
FOOTNOTE 2 82 FR 55309 (
Administrative Law Matters
A. Administrative Procedure Act
The agencies are issuing this direct final rule without prior notice and the opportunity for public comment and without the 30-day delayed effective date ordinarily prescribed by the Administrative Procedure Act (APA). /3/ 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." /4/
FOOTNOTE 3 5 U.S.C. 553. END FOOTNOTE
FOOTNOTE 4 5 U.S.C. 553(b)(B). END FOOTNOTE
As discussed above, this direct final rule addresses requests from banking industry groups to be allowed to comply starting on
The agencies believe that there is good cause to issue this direct final rule without notice and public procedure because that process would be unnecessary as the agencies recently issued a final rule after providing notice and receiving comment from the public. Specifically, the original administrative record that supports the Capital Simplifications Final Rule is still pertinent and, as a result, a new round of notice and comment on the Capital Simplifications Final Rule is unnecessary. The agencies could have issued the Capital Simplifications Final Rule with the provisions now being issued in the current direct final rule. The agencies believe that the implementation provisions of the current direct final rule are appropriate now given the feedback from the public since issuance of the Capital Simplifications Final Rule. In particular, the public feedback has indicated that many banking organizations would be prepared to implement the Capital Simplifications Final Rule for the quarter beginning
In addition, the agencies believe that there is good cause consistent with the public interest to issue this direct final rule without notice and public procedure. This direct final rule benefits banking organizations subject to the Capital Simplifications Final Rule by allowing them to begin complying with the new requirements in the Capital Simplifications Final Rule one quarter before they become mandatory, thereby simplifying the reporting requirements for those banking organizations whose systems will be in place by
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. /5/ The agencies find good cause to publish the direct final rule with an immediate effective date because the rule grants relief to banking organizations and because there is good cause for the same reasons set forth above under the discussion of section 553(b)(B) of the APA. Delaying the implementation date would deprive banking organizations that are considering adopting the requirements of the Capital Simplification Final Rule earlier of the ability to make modifications to their reporting prior on their preferred effective date.
FOOTNOTE 5 5 U.S.C. 553(d). END FOOTNOTE
B. Solicitation of Comments on Use of Plain Language
Section 722 of the Gramm-Leach-Bliley Act /6/ requires Federal banking agencies to use plain language in all proposed and final rules published after
FOOTNOTE 6 Public Law 106-102, section 722, 113 Stat. 1338, 1471 (1999). END FOOTNOTE
C. Paperwork Reduction Act Analysis
In accordance with the requirements of the Paperwork Reduction Act of 1995 (PRA), 44 U.S.C. 3501-3521, the agencies may not conduct or sponsor, and a respondent is not required to respond to, an information collection unless it displays a currently-valid
D. Regulatory Flexibility Act Analysis
The Regulatory Flexibility Act (RFA) does not apply to a rulemaking when a general notice of proposed rulemaking is not required. /7/ As noted previously, the agencies are issuing this direct final rule without notice and public procedure. Accordingly, the RFA's requirements relating to an initial and final regulatory flexibility analysis do not apply. Nonetheless, the agencies believe that, with respect to the entities subject to the direct final rule and within each agency's respective jurisdiction, the direct final rule would not have a significant economic impact on a substantial number of small entities. /8/
FOOTNOTE 7 5 U.S.C. 603 and 604. END FOOTNOTE
FOOTNOTE 8 Under regulations issued by the
E. Unfunded Mandates Reform Act of 1995
The OCC analyzed the final rule under the factors set forth in the Unfunded Mandates Reform Act of 1995 (UMRA) (2 U.S.C. 1532). Under this analysis, the OCC considered whether the rule includes a Federal mandate that may result in the expenditure by State, local, and Tribal governments, in the aggregate, or by the private sector, of
F.
Pursuant to section 302(a) of the
FOOTNOTE 9 12 U.S.C. 4802(a). END FOOTNOTE
FOOTNOTE 10 12 U.S.C. 4802. END FOOTNOTE
Because the direct final rule would not impose additional reporting, disclosure, or other requirements on IDIs, section 302 of the RCDRIA does not apply. In any event, the direct final rule will take effect on
G. The Congressional Review Act
For purposes of Congressional Review Act, the OMB makes a determination as to whether a final rule constitutes a "major" rule. /11/ 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. /12/
FOOTNOTE 11 5 U.S.C.
FOOTNOTE 12 5 U.S.C. 801(a)(3). END FOOTNOTE
The Congressional Review Act defines a "major rule" as any rule that the Administrator of the
FOOTNOTE 13 5 U.S.C. 804(2). END FOOTNOTE
The OMB has determined that the direct final ruleis not a "major rule" within the meaning of the Congressional Review Act. /14/ As required by the Congressional Review Act, the agencies will submit the direct final rule and other appropriate reports to
FOOTNOTE 14 5 U.S.C.
List of Subjects
12 CFR Part 3
Administrative practice and procedure, Capital, National banks, Risk.
12 CFR Part 217
Administrative practice and procedure, Banks, Banking, Capital,
12 CFR Part 324
Administrative practice and procedure, Banks, Banking, Capital adequacy, Savings associations, State non-member banks.
PART 3--CAPITAL ADEQUACY STANDARDS
1. The authority citation for part 3 continues to read as follows:
Authority: 12 U.S.C. 93a, 161, 1462, 1462a, 1463, 1464, 1818, 1828(n), 1828 note, 1831n note, 1835, 3907, 3909, and 5412(b)(2)(B).
2. Section 3.300 is amended by adding paragraph (f) to read as follows:
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(f) A national bank or Federal savings association that is not an advanced approaches national bank or Federal savings association may apply the treatment under [Sec.]
*****
For the reasons set out in the joint preamble, the
PART 217--CAPITAL ADEQUACY OF BANK HOLDING COMPANIES, SAVINGS AND LOAN HOLDING COMPANIES, AND STATE MEMBER BANKS (REGULATION Q)
3. The authority citation for part 217 continues to read as follows:
Authority: 12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a, 1818, 1828, 1831n, 1831o, 1831p-l, 1831w, 1835, 1844(b), 1851, 3904, 3906-3909, 4808, 5365, 5368, 5371.
4. Section 217.300 is amended by adding paragraph (g) to read as follows:
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(g) A Board-regulated institution that is not an advanced approaches Board-regulated institution may apply the treatment under [Sec.]
*****
12 CFR Part 324
For the reasons set out in the joint preamble, 12 CFR part 324 is amended as follows.
PART 324--CAPITAL ADEQUACY OF FDIC-SUPERVISED INSTITUTIONS
5. The authority citation for part 324 continues to read as follows:
Authority: 12 U.S.C. 1815(a), 1815(b), 1816, 1818(a), 1818(b), 1818(c), 1818(t), 1819(Tenth), 1828(c), 1828(d), 1828(i), 1828(n), 1828(o), 1831o, 1835, 3907, 3909, 4808; 5371; 5412; Pub. L. 102-233, 105 Stat. 1761, 1789, 1790 (12 U.S.C. 1831n note); Pub. L. 102-242, 105 Stat. 2236, 2355, as amended by Pub. L. 103-325, 108 Stat. 2160, 2233 (12 U.S.C. 1828 note); Pub. L. 102-242, 105 Stat. 2236, 2386, as amended by Pub. L. 102-550, 106 Stat. 3672, 4089 (12 U.S.C. 1828 note); Pub. L. 111-203, 124 Stat. 1376, 1887 (15 U.S.C. 78o-7 note).
6. Effective
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(f) An FDIC-supervised institution that is not an advanced approaches
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Dated:
Comptroller of the Currency.
By order of the
Secretary of the Board.
By order of the Board of Directors.
Dated at
Executive Secretary.
[FR Doc. 2019-23467 Filed 11-12-19;
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