83 FR 17737 - Regulatory Capital Rules: Removal of Certain Capital Rules That Are No Longer Effective Following the Implementation of the Revised Capital Rules
FEDERAL DEPOSIT INSURANCE CORPORATION Federal Register Volume 83, Issue 79 (April 24, 2018)
Federal Register Volume 83, Issue 79 (April 24, 2018)
| Page Range | 17737-17744 | |
| FR Document | 2018-06881 |
[Federal Register Volume 83, Number 79 (Tuesday, April 24, 2018)] [Rules and Regulations] [Pages 17737-17744] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-06881] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ 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. ======================================================================== Federal Register / Vol. 83, No. 79 / Tuesday, April 24, 2018 / Rules and Regulations [[Page 17737]] FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Parts 303, 308, 324, 325, 327, 333, 337, 347, 349, 360, 362, 363, 364, 365, and 390 RIN 3064-AE51 Regulatory Capital Rules: Removal of Certain Capital Rules That Are No Longer Effective Following the Implementation of the Revised Capital Rules AGENCY: Federal Deposit Insurance Corporation (FDIC). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule rescinds certain capital regulations of the FDIC's codified rules (superseded capital rules) that were no longer effective following the January 1, 2015 implementation of the revised capital rules. The final rule also makes conforming changes to sections in the FDIC's codified rules that refer to the superseded capital rules.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with an effective date as of the date of its publication in the Federal Register because this final rule rescinds the superseded capital rules and other sections of the FDIC's codified rules that refer to the superseded capital rules and imposes no new requirement on FDIC- supervised institutions. DATES: The final rule is effective April 24, 2018. FOR FURTHER INFORMATION CONTACT: Benedetto Bosco, Chief, Capital Policy Section; bbosco@fdic.gov, Capital Markets Branch, Division of Risk Management Supervision, (202) 898-6888; Catherine Wood, Counsel, cawood@fdic.gov; Michael Phillips, Supervisory Counsel, mphillips@fdic.gov, Supervision and Legislation Branch, Legal Division, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. SUPPLEMENTARY INFORMATION: I. Background In 2014, the FDIC comprehensively revised and strengthened its capital regulations applicable to FDIC-supervised institutions (revised capital rule).\1\ The revised capital rule was codified in part 324 of the FDIC's codified rules (effective January 1, 2014, for advanced approaches banking organizations) and was effective for all non- advanced approaches FDIC-supervised institutions on January 1, 2015. Before the effective dates of the revised capital rule, FDIC-supervised institutions were subject to the superseded capital rules in part 325 and subparts Y and Z of part 390 of the FDIC's codified rules. The superseded capital rules remain in the Code of Federal Regulations (CFR), even though they were no longer effective for any FDIC- supervised institution since January 1, 2015. Maintaining the superseded capital rules in the FDIC's codified rules could result in confusion and therefore this final rule removes the superseded capital rules. --------------------------------------------------------------------------- \1\ 79 FR 20754 (April 14, 2014). --------------------------------------------------------------------------- II. Description of the Final Rule The final rule rescinds part 325, subpart A--Minimum Capital Requirements, subpart B--Prompt Corrective Action and appendices A through D, as the rules contained therein have been superseded by part 324. Under the final rule, the annual stress testing rule will remain in part 325. Part 325 will be retitled to Annual Stress Test and the stress testing rule will be renumbered to reflect the removed capital rules. Similarly, the final rule removes the superseded capital rules contained in part 390 subpart Y--Prompt Corrective Action and part 390, subpart Z--Capital and related appendices. Under the final rule, sections in part 390 that are not removed will remain codified in part 390, including certain enforcement authorities related to savings association's capital requirements. The final rule also makes conforming technical changes to provisions of the FDIC's codified rules that refer to part 325 for state nonmember banks and subparts Y and Z of part 390 for state savings associations in conjunction with the FDIC's capital rules. However, this final rule does not impact the legal status of any reference to the superseded capital rules in outstanding compliance and enforcement orders, agreements, and memoranda of understanding entered into by the FDIC prior to the effective date of this final rule. Regardless of whether an outstanding enforcement order refers to the superseded capital rule, all FDIC- supervised institutions are subject to the revised capital rule and must be in compliance with the minimum capital requirements in part 324.\2\ --------------------------------------------------------------------------- \2\ Generally FDIC-supervised institutions can demonstrate compliance with outstanding enforcement orders referencing the superseded capital rule by calculating their capital ratios under the revised capital rule. The FDIC made a finding during the interagency capital rulemaking process in 2013 that the revised capital rule is more stringent than the superseded capital rule. Therefore, an FDIC-supervised institution subject to an enforcement order under the superseded capital rule may demonstrate its compliance using its ratios as calculated under the revised capital rule. --------------------------------------------------------------------------- III. Administrative Procedure Act The Administrative Procedure Act (APA) does not require an agency to publish a notice of proposed rulemaking (NPR) in the Federal Register if 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.'' \3\ The FDIC finds that for purposes of the rescission of the superseded capital rules, good cause exists to not publish a notice of proposed rulemaking in the Federal Register and, therefore, is issuing this rule as a final rule. The FDIC believes that a notice of proposed rulemaking is unnecessary for such purposes because the FDIC published three NPRs and an interim final rule for comment before issuing the revised capital rules in 2014.\4\ The comment period for those NPRs and interim final rule provided sufficient public notice that the revised [[Page 17738]] capital rules would replace the superseded capital rules for all FDIC- supervised institutions as of January 1, 2015. This final rule solely removes the obsolete provisions of, and references to, the superseded capital rules in the CFR and imposes no new requirement on FDIC- supervised institutions. Accordingly, the FDIC concludes that good cause exists to publish the rule as final without a notice and opportunity to comment. --------------------------------------------------------------------------- \3\ 5 U.S.C. 553(b). \4\ Concerning the NPRs for the revised capital rules, see 77 FR 52792 (August 30, 2012); 77 FR 52888 (August 30, 2012); 77 FR 52978 (August 30, 2012). The interim final rule for the revised capital rules was issued in September 10, 2013 (78 FR 55340). In the preamble to the interim final rule, the FDIC stated: ``The interim final rule will replace the FDIC's general risk-based capital rules, advanced approaches rule, market risk rule, and leverage rules in accordance with the transition provisions described below.'' Also, section 324.1(f) of the revised capital rules states the timing for the implementation of the revised capital rules. See 12 CFR 324.1(f). --------------------------------------------------------------------------- Section 553(d)(3) of the APA provides that, for good cause found and published with the rule, an agency does not have to comply with the requirement that a substantive rule be published not less than 30 days before its effective date.\5\ The final rule will be effective immediately upon its publication in the Federal Register. The FDIC invokes the good cause exception to the APA's 30-day publication requirement for the reasons discussed above. --------------------------------------------------------------------------- \5\ 5 U.S.C. 553(d)(3). --------------------------------------------------------------------------- IV. Regulatory Analyses A. Regulatory Flexibility Act The Regulatory Flexibility Act, 5 U.S.C. 601 et seq. (RFA), requires an agency, in connection with a notice of proposed rulemaking, to prepare an Initial Regulatory Flexibility Analysis describing the impact of the proposed rule on small entities (defined by the Small Business Administration for purposes of the RFA to include banking entities with total assets of $550 million or less) or to certify that the proposed rule would not have a significant economic impact on a substantial number of small entities. The RFA also requires an agency, in connection with a final rule, to prepare a Final Regulatory Flexibility Act (FRFA) analysis describing the impact of the final rule on small entities. Neither an IRFA nor FRFA is required, however, if the rule is issued under the APA provision allowing the agency to forego notice and comment rulemaking for good cause. Therefore, the FDIC has not prepared either an IRFA or an FRFA in connection with this final rule. Nevertheless, the FDIC notes that the final rule does not impose any burden on small banking entities as it only rescinds obsolete provisions in the FDIC's CFR. B. Paperwork Reduction Act In accordance with the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521), the FDIC may not conduct or sponsor, and a respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The FDIC reviewed the rule and determined that it does not create any new, or revise any existing, collection of information under section 3504(h) of the Paperwork Reduction Act of 1980. Consequently, no information collection request will be submitted to the OMB for review. C. Small Business Regulatory Enforcement Fairness Act The Office of Management and Budget has determined that the final rule is not a ``major rule'' within the meaning of the Small Business Regulatory Enforcement Fairness Act of 1996 (Title II, Pub. L. 104- 121). D. The Treasury and General Government Appropriations Act, 1999-- Assessment of Federal Regulations and Policies on Families The FDIC has determined that the final rule will not affect family well-being within the meaning of section 654 of the Treasury and General Government Appropriations Act, enacted as part of the Omnibus Consolidated and Emergency Supplemental Appropriations Act of 1999 (Pub. L. 105-277, 112 Stat. 2681). E. Plain Language Section 722 of the Gramm-Leach-Bliley Act requires the federal banking agencies to use plain language in all final rules published after January 1, 2000. The FDIC has sought to present the final rule in a simple and straightforward manner. F. Riegle Community Development and Regulatory Improvement Act of 1994 Under the Riegle Community Development and Regulatory Improvement Act of 1994, 12 U.S.C. 4802, (RCDRIA), there is a requirement that ``[n]ew regulations and amendments to regulations prescribed by a Federal banking agency which impose additional reporting, disclosures, or other new requirements on insured depository institutions shall take effect on the first day of a calendar quarter which begins on or after the date on which the regulations are published in final form'' absent a good cause determination by the agency.\6\ The final rule imposes no additional reporting, disclosure, or other new requirements on insured depository institutions and therefore is not subject to the effective date requirement in RCDRIA. --------------------------------------------------------------------------- \6\ 12 U.S.C. 4802(b). --------------------------------------------------------------------------- List of Subjects 12 CFR Part 303 Administrative practice and procedure, Bank deposit insurance, Banks, banking, Reporting and recordkeeping requirements, Savings associations. 12 CFR Part 308 Administrative practice and procedure, Bank deposit insurance, Banks, banking, Claims, Crime, Equal access to justice, Fraud, Investigations, Lawyers, Penalties. 12 CFR Part 324 Administrative practice and procedure, Banks, banking, Reporting and recordkeeping requirements, Savings associations. 12 CFR Part 325 Banks, banking, Reporting and recordkeeping requirement. 12 CFR Part 327 Bank deposit insurance, Banks, banking, Savings associations. 12 CFR Part 333 Banks, banking. 12 CFR Part 337 Banks, banking, Reporting and recordkeeping requirements, Securities. 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. 12 CFR Part 349 Administrative practice and procedure, Banks, banking, Holding companies, Reporting and recordkeeping requirements, Savings associations, Swaps. 12 CFR Part 360 Savings associations. 12 CFR Part 362 Administrative practice and procedure, Authority delegations (Government agencies), Bank deposit insurance, Banks, banking, Investments, Reporting and recordkeeping requirements. 12 CFR Part 363 Accounting, Administrative practice and procedure, Banks, banking, Reporting and recordkeeping requirements. 12 CFR Part 364 Banks, banking, Information. [[Page 17739]] 12 CFR Part 365 Banks, banking, Mortgages. 12 CFR Part 390 Administrative practice and procedure, Advertising, Aged, Civil rights, Conflict of interests, Credit, Crime, Equal employment opportunity, Fair housing, Government employees, Individuals with disabilities, Reporting and recordkeeping requirements, Savings associations. Authority and Issuance For the reasons stated in the preamble, the Federal Deposit Insurance Corporation amends 12 CFR parts 303, 308, 324, 325, 327, 333, 337, 347, 349, 360, 362, 363, 364, 365, and 390 as follows: PART 303--FILING PROCEDURES 0 1. The authority citation for part 303 continues to read as follows: Authority: 12 U.S.C. 378, 1464, 1813, 1815, 1817, 1818, 1819(a) (Seventh and Tenth), 1820, 1823, 1828, 1831a, 1831e, 1831o, 1831p-1, 1831w, 1835a, 1843(l), 3104, 3105, 3108, 3207; 5414; 15 U.S.C. 1601- 1607. 0 2. Section 303.2 is amended by revising paragraphs (b), (ee), and (ff) to read as follows: Sec. 303.2 Definitions. * * * * * (b) Adjusted part 324 total assets means adjusted 12 CFR part 324 total assets as calculated and reflected in the FDIC's Report of Examination. * * * * * (ee) Tier 1 capital shall have the same meaning as provided in Sec. 324.2 of this chapter. (ff) Total assets shall have the same meaning as provided in Sec. 324.401(g) of this chapter. * * * * * 0 3. Section 303.64 is amended by revising paragraph (a)(4)(i) to read as follows: Sec. 303.64 Processing. (a) * * * (4) * * * (i) Immediately following the merger transaction, the resulting institution will be well-capitalized pursuant to subpart H of part 324 of this chapter (12 CFR part 324); and * * * * * 0 4. Section 303.181 is amended by revising paragraph (c)(4) to read as follows: Sec. 303.181 Definitions. * * * * * (c) * * * (4) Is well-capitalized as defined in subpart H of part 324 of this chapter; and * * * * * 0 5. Section 303.184 is amended by revising paragraph (d)(1)(ii) to read as follows: Sec. 303.184 Moving an insured branch of a foreign bank. * * * * * (d) * * * (1) * * * (ii) The applicant is at least adequately capitalized as defined in subpart H of part 324 of this chapter; * * * * * 0 6. Section 303.200 is amended by revising paragraphs (a)(2) and (b) to read as follows: Sec. 303.200 Scope. (a) * * * (2) Definitions of the capital categories referenced in this Prompt Corrective Action subpart may be found in subpart H of part 324 of this chapter. (b) Institutions covered. Restrictions and prohibitions contained in subpart H of part 324 of this chapter apply primarily to state nonmember banks and insured branches of foreign banks, as well as to directors and senior executive officers of those institutions. Portions of subpart H of part 324 of this chapter also apply to all insured depository institutions that are deemed to be critically undercapitalized. * * * * * 0 7. Section 303.241 is amended by revising paragraph (c)(4) to read as follows: Sec. 303.241 Reduce or retire capital stock or capital debt instruments. * * * * * (c) * * * (4) If the proposal involves a series of transactions affecting Tier 1 capital components which will be consummated over a period of time which shall not exceed twelve months, the application shall certify that the insured depository institution will maintain itself as a well-capitalized institution as defined in part 324 of this chapter both before and after each of the proposed transactions; * * * * * PART 308--RULES OF PRACTICE AND PROCEDURE 0 8. The authority citation for part 308 continues to read as follows: Authority: 5 U.S.C. 504, 554-557; 12 U.S.C. 93(b), 164, 505, 1464, 1467(d), 1467a, 1468, 1815(e), 1817, 1818, 1819, 1820, 1828, 1829, 1829b, 1831i, 1831m(g)(4), 1831o, 1831p-1, 1832(c), 1884(b), 1972, 3102, 3108(a), 3349, 3909, 4717, 5412(b)(2)(C), 5414(b)(3); 15 U.S.C. 78(h) and (i), 78o(c)(4), 78o-4(c), 78o-5, 78q-1, 78s, 78u, 78u-2, 78u-3, 78w, 6801(b), 6805(b)(1); 28 U.S.C. 2461 note; 31 U.S.C. 330, 5321; 42 U.S.C. 4012a; Pub.L. 104-134, sec. 3100(s), 110 Stat. 1321; Pub.L. 109-351, 120 Stat. 1966; Pub. L. 111-203, 124 Stat. 1376; Pub.L. 114-74, sec. 701, 129 Stat. 584. 0 9. Section 308.200 is revised to read as follows: Sec. 308.200 Scope. The rules and procedures set forth in this subpart apply to banks, insured branches of foreign banks and senior executive officers and directors of banks that are subject to the provisions of section 38 of the Federal Deposit Insurance Act (section 38) (12 U.S.C. 1831o) and subpart H of part 324 of this chapter. 0 10. Section 308.202 is amended by revising paragraphs (a)(1)(i)(A) and (a)(1)(ii) to read as follows: Sec. 308.202 Procedures for reclassifying a bank based on criteria other than capital. (a) * * * (1) * * * (i) Grounds for reclassification. (A) Pursuant to Sec. 324.403(d) of this chapter, the FDIC may reclassify a well-capitalized bank as adequately capitalized or subject an adequately capitalized or undercapitalized institution to the supervisory actions applicable to the next lower capital category if: (1) The FDIC determines that the bank is in unsafe or unsound condition; or (2) The FDIC, pursuant to section 8(b)(8) of the FDI Act (12 U.S.C. 1818(b)(8)), deems the bank to be engaged in an unsafe or unsound practice and not to have corrected the deficiency. * * * * * (ii) Prior notice to institution. Prior to taking action pursuant to Sec. 324.403(d) of this chapter, the FDIC shall issue and serve on the bank a written notice of the FDIC's intention to reclassify it. * * * * * 0 11. Section 308.204 is amended by revising paragraphs (b)(2) and (c) to read as follows: Sec. 308.204 Enforcement of directives. * * * * * (b) * * * (2) Failure to implement capital restoration plan. The failure of a bank to implement a capital restoration plan required under section 38, or subpart H of part 324 of this chapter, or the failure of a company having control of a bank [[Page 17740]] to fulfill a guarantee of a capital restoration plan made pursuant to section 38(e)(2) of the FDI Act shall subject the bank to the assessment of civil money penalties pursuant to section 8(i)(2)(A) of the FDI Act. (c) Other enforcement action. In addition to the actions described in paragraphs (a) and (b) of this section, the FDIC may seek enforcement of the provisions of section 38 or subpart H of part 324 of this chapter through any other judicial or administrative proceeding authorized by law. * * * * * PART 324--CAPITAL ADEQUACY OF FDIC-SUPERVISED INSTITUTIONS 0 12. 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). 0 13. Section 324.22 is amended by revising footnote 22 in paragraph (b)(2)(iii) to read as follows: Sec. 324.22 Regulatory capital adjustments and deductions. * * * * * (b) * * * (2) * * * (iii) * * * \22\ These rules include the regulatory capital requirements set forth at 12 CFR part 3 (OCC); 12 CFR part 217 (Board); 12 CFR part 324 (FDIC). * * * * * PART 325--ANNUAL STRESS TEST 0 14. The authority citation for part 325 continues to read as follows: Authority: 12 U.S.C. 5365(i)(2), 12 U.S.C. 5412(b)(2)(C), 12 U.S.C. 1818, 12 U.S.C. 1819(a)(Tenth), 12 U.S.C. 1831o, and 12 U.S.C. 1831p-1. 0 15. The heading for part 325 is revised to read as set forth above. Subparts A and B [Removed] 0 16. Remove subparts A and B. Subpart C [Amended] 0 17. Remove the heading for subpart C. Sec. Sec. 325.201 through 325.207 [Redesignated as Sec. Sec. 325.1 through 325.7] 0 18. Redesignate Sec. Sec. 325.201 through 325.207 as Sec. Sec. 325.1 through 325.7, respectively. 0 19. Amend newly redesignated Sec. 325.1 by revising paragraph (c)(5) to read as follows: Sec. 325.1 Authority, purpose, and reservation of authority. * * * * * (c) * * * (5) Notice and comment procedures: In exercising its authority to require different or additional stress tests and different or additional scenarios (including components for the scenarios) under paragraph (c)(2) of this section, the Corporation will apply notice and response procedures in the same manner and to the same extent as the notice and response procedures in 12 CFR 324.5, as appropriate. * * * * * Appendices A, B, C, and D [Removed] 0 20. Remove appendices A, B, C, and D. PART 327--ASSESSMENTS 0 21. The authority citation for part 327 continues to read as follows: Authority: 12 U.S.C. 1441, 1813, 1815, 1817-19, 1821. 0 22. Appendix A to subpart A of part 327 is amended by revising footnote 5 in section VI to read as follows: Appendix A to Subpart A of Part 327--Method to Derive Pricing Multipliers and Uniform Amount * * * * * VI. * * * \5\ Market risk is defined in 12 CFR 324.202. 0 23. Appendix C to subpart A of part 327 is amended by revising the appendix heading and the first and second sentences in the first paragraph in section I.A.5 to read as follows: Appendix C to Subpart A to Part 327--Description of Concentration Measures I. * * * A. * * * 5. * * * Higher-risk securitizations are defined as securitization exposures (except securitizations classified as trading book), where, in aggregate, more than 50 percent of the assets backing the securitization meet either the criteria for higher-risk C & I loans or securities, higher-risk consumer loans, or nontraditional mortgage loans, except those classified as trading book. A securitization exposure is as defined in 12 CFR 324.2, as it may be amended from time to time. * * * * * * * * PART 333--EXTENSION OF CORPORATE POWERS 0 24. The authority citation for part 333 continues to read as follows: Authority: 12 U.S.C. 1816, 1818, 1819 (``Seventh'', ``Eighth'' and ``Tenth''), 1828, 1828(m), 1831p-1(c). 0 25. Section 333.4 is amended by revising the fourth sentence in paragraph (a) to read as follows: Sec. 333.4 Conversions from mutual to stock form. (a) Scope. * * * As determined by the Board of Directors of the FDIC on a case-by-case basis, the requirements of paragraphs (d), (e), and (f) of this section do not apply to mutual-to-stock conversions of insured mutual state savings banks whose capital category under Sec. 324.403 of this chapter is ``undercapitalized'', ``significantly undercapitalized'' or ``critically undercapitalized''. * * * * * * * * PART 337--UNSAFE AND UNSOUND BANKING PRACTICES 0 26. 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. 0 27. Section 337.6 is amended by revising footnote 12 in paragraph (a)(3)(i) and the second sentence in footnote 13 in paragraph (a)(3)(iii) to read as follows: Sec. 337.6 Brokered deposits. * * * * * (a) * * * (3) * * * (i) * * * \12\ For the most part, the capital measure terms are defined in the following regulations: FDIC--12 CFR part 324, subpart H; Board of Governors of the Federal Reserve System--12 CFR part 208; and Office of the Comptroller of the Currency--12 CFR part 6. * * * * * (iii) * * * \13\ * * * Provisions specifying the effective date of determination of capital category are generally published in the following regulations: FDIC--12 CFR 324.402; Board of Governors of the Federal Reserve System--12 CFR part 208, subpart D; and Office of the Comptroller of the Currency--12 CFR 6.3. * * * * * [[Page 17741]] PART 347--INTERNATIONAL BANKING 0 28. The authority citation for part 347 continues to read as follows: Authority: 12 U.S.C. 1813, 1815, 1817, 1819, 1820(d), 1828, 3103, 3104, 3105, 3108, 3109; Title IX, Pub. L. 98-181, 97 Stat. 1153 (12 U.S.C. 3901 et seq.). 0 29. Section 347.102 is amended by revising paragraphs (u) and (v) to read as follows: Sec. 347.102 Definitions. * * * * * (u) Tier 1 capital means Tier 1 capital as defined in Sec. 324.2 of this chapter. (v) Well capitalized means well capitalized as defined in Sec. 324.403 of this chapter. PART 349--DERIVATIVES Subpart B--Retail Foreign Exchange Transactions 0 30. The authority citation for part 349, subpart B, continues to read as follows: Authority: 12 U.S.C. 1813(q), 1818, 1819, and 3108; 7 U.S.C. 2(c)(2)(E), 27 et seq. 0 31. Section 349.20 is revised to read as follows: Sec. 349.20 Capital requirements. An FDIC-supervised insured depository institution offering or entering into retail forex transactions must be well capitalized as defined by 12 CFR part 324, unless specifically exempted by the FDIC in writing. PART 360--RESOLUTION AND RECEIVERSHIP RULES 0 32. The authority citation for part 360 continues to read as follows: Authority: 12 U.S.C. 1821(d)(1), 1821(d)(10)(C), 1821(d)(11), 1821(e)(1), 1821(e)(8)(D)(i), 1823(c)(4), 1823(e)(2); Sec. 401(h), Pub. L. 101-73, 103 Stat. 357. 0 33. Section 360.5 is amended by revising paragraph (b) to read as follows: Sec. 360.5 Definition of qualified financial contracts. * * * * * (b) Repurchase agreements. The following agreements shall be deemed ``repurchase agreements'' under section 11(e)(8)(D)(v) of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1821(e)(8)(D)(v)): A repurchase agreement on qualified foreign government securities is an agreement or combination of agreements (including master agreements) which provides for the transfer of securities that are direct obligations of, or that are fully guaranteed by, the central governments (as set forth at 12 CFR 324.2 (definition of sovereign exposure), as may be amended from time to time) of the OECD-based group of countries (as generally discussed in 12 CFR 324.32) against the transfer of funds by the transferee of such securities with a simultaneous agreement by such transferee to transfer to the transferor thereof securities as described above, at a date certain not later than one year after such transfers or on demand, against the transfer of funds. * * * * * 0 34. Section 360.9 is amended by revising paragraph (e)(6) to read as follows: Sec. 360.9 Large-bank deposit insurance determination modernization. * * * * * (e) * * * (6) Notwithstanding the general requirements of this paragraph (e), on a case-by-case basis, the FDIC may accelerate, upon notice, the implementation timeframe of all or part of the requirements of this section for a covered institution that: Has a composite rating of 3, 4, or 5 under the Uniform Financial Institution's Rating System, or in the case of an insured branch of a foreign bank, an equivalent rating; is undercapitalized, as defined under the prompt corrective action provisions of 12 CFR part 324; or is determined by the appropriate Federal banking agency or the FDIC in consultation with the appropriate Federal banking agency to be experiencing a significant deterioration of capital or significant funding difficulties or liquidity stress, notwithstanding the composite rating of the institution by its appropriate Federal banking agency in its most recent report of examination. In implementing this paragraph (e)(6), the FDIC must consult with the covered institution's primary federal regulator and consider the: Complexity of the institution's deposit systems and operations, extent of the institution's asset quality difficulties, volatility of the institution's funding sources, expected near-term changes in the institution's capital levels, and other relevant factors appropriate for the FDIC to consider in its roles as insurer and possible receiver of the institution. * * * * * PART 362--ACTIVITIES OF INSURED STATE BANKS AND INSURED SAVINGS ASSOCIATIONS 0 35. The authority citation for part 362 continues to read as follows: Authority: 12 U.S.C. 1816, 1818, 1819(a)(Tenth), 1828(j), 1828(m), 1828a, 1831a, 1831e, 1831w, 1843(l). 0 36. Section 362.2 is amended by revising paragraphs (s) and (t) to read as follows: Sec. 362.2 Definitions. * * * * * (s) Tier one capital has the same meaning as set forth in part 324 of this chapter for an insured State nonmember bank or insured state savings association. For other state-chartered depository institutions, the term ``tier one capital'' has the same meaning as set forth in the capital regulations adopted by the appropriate Federal banking agency. (t) Well-capitalized has the same meaning set forth in part 324 of this chapter for an insured State nonmember bank or insured state savings association. For other state-chartered depository institutions, the term ``well-capitalized'' has the same meaning as set forth in the capital regulations adopted by the appropriate Federal banking agency. 0 37. Section 362.4 is amended by revising paragraph (e)(3) to read as follows: Sec. 362.4 Subsidiaries of insured State banks. * * * * * (e) * * * (3) Use such regulatory capital amount for the purposes of the bank's assessment risk classification under part 327 of this chapter and its categorization as a ``well-capitalized'', an ``adequately capitalized'', an ``undercapitalized'', or a ``significantly undercapitalized'' institution as defined in Sec. 324.403(b) of this chapter, provided that the capital deduction shall not be used for purposes of determining whether the bank is ``critically undercapitalized'' under part 324 of this chapter. 0 38. Section 362.17 is amended by revising paragraph (d) to read as follows: Sec. 362.17 Definitions. * * * * * (d) Tangible equity and Tier 2 capital have the same meaning as set forth in part 324 of this chapter. * * * * * PART 363--ANNUAL INDEPENDENT AUDITS AND REPORTING REQUIREMENTS 0 39. The authority citation for part 363 continues to read as follows: Authority: 12 U.S.C. 1831m. [[Page 17742]] 0 40. Appendix A to part 363 is amended by revising Table 1 to Appendix A to read as follows: Appendix A to Part 363--Guidelines and Interpretations * * * * * Table 1 to Appendix A--Designated Federal Laws and Regulations Applicable to: -------------------------------------------------------------------------------------------------------------------------------------------------------- State member State non- Savings National banks banks member banks associations -------------------------------------------------------------------------------------------------------------------------------------------------------- Insider Loans--Parts and/or Sections of Title 12 of the United States Code -------------------------------------------------------------------------------------------------------------------------------------------------------- 375a......................................... Loans to Executive Officers of Banks. [radic] [radic] (A) (A) 375b......................................... Extensions of Credit to Executive [radic] [radic] (A) (A) Officers, Directors, and Principal Shareholders of Banks. 1468(b)...................................... Extensions of Credit to Executive ............... ............... ............... [radic] Officers, Directors, and Principal Shareholders. 1828(j)(2)................................... Extensions of Credit to Officers, ............... ............... [radic] ............... Directors, and Principal Shareholders. 1828(j)(3)(B)................................ Extensions of Credit to Officers, (B) ............... (C) ............... Directors, and Principal Shareholders. -------------------------------------------------------------------------------------------------------------------------------------------------------- Parts and/or Sections of Title 12 of the Code of Federal Regulations -------------------------------------------------------------------------------------------------------------------------------------------------------- 31........................................... Extensions of Credit to Insiders..... [radic] ............... ............... ............... 32........................................... Lending Limits....................... [radic] ............... ............... ............... 215.......................................... Loans to Executive Officers, [radic] [radic] (D) (E) Directors, and Principal Shareholders of Member Banks. 337.3........................................ Limits on Extensions of Credit to ............... ............... [radic] ............... Executive Officers, Directors, and Principal Shareholders of Insured Nonmember Banks. 390.338 (state savings associations)......... Loans by Savings Associations to ............... ............... ............... [radic] Their Executive Officers, Directors, and Principal Shareholders. -------------------------------------------------------------------------------------------------------------------------------------------------------- Dividend Restrictions--Parts and/or Sections of Title 12 of the United States Code -------------------------------------------------------------------------------------------------------------------------------------------------------- 56........................................... Prohibition on Withdrawal of Capital [radic] [radic] ............... ............... and Unearned Dividends. 60........................................... Dividends and Surplus Fund........... [radic] [radic] ............... ............... 1467a(f)..................................... Declaration of Dividend.............. ............... ............... ............... [radic] 1831o(d)(1).................................. Prompt Corrective Action--Capital [radic] [radic] [radic] [radic] Distributions Restricted. -------------------------------------------------------------------------------------------------------------------------------------------------------- Parts and/or Sections of Title 12 of the Code of Federal Regulations -------------------------------------------------------------------------------------------------------------------------------------------------------- 5 Subpart E.................................. Payment of Dividends................. [radic] ............... ............... ............... 6.6.......................................... Prompt Corrective Action-- [radic] ............... ............... ............... Restrictions on Undercapitalized Institutions. 208.5........................................ Dividends and Other Distributions.... ............... [radic] ............... ............... 208.45....................................... Prompt Corrective Action-- ............... [radic] ............... ............... Restrictions on Undercapitalized Institutions. 324.405...................................... Prompt Corrective Action-- ............... ............... [radic] ............... Restrictions on Undercapitalized Institutions. 390.342-.348 (state savings associations).... Capital Distributions................ ............... ............... ............... [radic] 390.455 (state savings associations)......... Prompt Corrective Action-- ............... ............... ............... [radic] Restrictions on Undercapitalized Institutions. -------------------------------------------------------------------------------------------------------------------------------------------------------- (A) Subsections (g) and (h) of section 22 of the Federal Reserve Act [12 U.S.C. 375a, 375b] (B) Applies only to insured Federal branches of foreign banks. (C) Applies only to insured State branches of foreign banks. (D) See 12 CFR 337.3. (E) See 12 CFR 390.338 (state savings associations). PART 364--STANDARDS FOR SAFETY AND SOUNDNESS 0 41. The authority citation in part 364 continues to read as follows: Authority: 12 U.S.C. 1818 and 1819 (Tenth), 1831p-1; 15 U.S.C. 1681b, 1681s, 1681w, 6801(b), 6805(b)(1). 0 42. Appendix A to part 364 is amended by revising the last sentence in section I.A. to read as follows: Appendix A to Part 364--Interagency Guidelines Establishing Standards for Safety and Soundness * * * * * I. * * * A. * * * * * * Nothing in these Guidelines limits the authority of the FDIC pursuant to section 38(i)(2)(F) of the FDI Act (12 U.S.C. 1831o) and part 324 of title 12 of the Code of Federal Regulations. * * * * * [[Page 17743]] PART 365--REAL ESTATE LENDING STANDARDS 0 43. The authority citation for part 365 continues to read as follows: Authority: 12 U.S.C. 1828(o) and 5101 et seq. 0 44. Appendix A to subpart A of part 365 is amended by revising footnote 2 to the ``Loans in Excess of the Supervisory Loan-to-Value Limits'' section to read as follows: Appendix A to Subpart A of Part 365--Interagency Guidelines for Real Estate Lending Policies * * * * * Loans in Excess of the Supervisory Loan-to-Value Limits * * * * * \2\ For state non-member banks and state savings associations, ``total capital'' refers to that term described in 12 CFR 324.2. * * * * * PART 390--REGULATIONS TRANSFERRED FROM THE OFFICE OF THRIFT SUPERVISION 0 45. The authority citation for part 390 is revised to read as follows: Authority: 12 U.S.C. 1819. Sec. 390.101 [Amended] 0 46. Section 390.101 is amended in paragraph (f) by removing ``subpart Z'' and adding in its place ``12 CFR part 324.'' 0 47. Section 390.264 is revised to read as follows: Sec. 390.264 Real estate lending standards; purpose and scope. This section, and Sec. 390.265, issued pursuant to section 18(o) of the Federal Deposit Insurance Act, (12 U.S.C. 1828(o)), prescribe standards for real estate lending to be used by State savings associations and all their includable subsidiaries, as defined in part 324 of this chapter, over which the State savings associations exercise control, in adopting internal real estate lending policies. 0 48. The appendix to Sec. 390.265 is amended by revising footnote 4 to read as follows: Sec. 390.265 Real estate lending standards. * * * * * Appendix to Sec. 390.265--Interagency Guidelines for Real Estate Lending Policies * * * * * \4\ For the state member banks, the term ``total capital'' is defined at 12 CFR 217.2. For insured state non-member banks, the term ``total capital'' is defined at 12 CFR 324.2. For national banks, the term ``total capital'' is defined at 12 CFR 3.2. For state savings associations, the term ``total capital'' is defined at 12 CFR 324.2. * * * * * 0 49. Section 390.316 is amended by revising paragraph (c) to read as follows: Sec. 390.316 With recourse. * * * * * (c) This definition does not apply for purposes of determining the capital adequacy requirements under part 324 of this chapter. 0 50. Section 390.341 is amended by revising paragraphs (a), (c)(1)(i)(G), and (d)(2)(ii) to read as follows: Sec. 390.341 Inclusion of subordinated debt securities and mandatorily redeemable preferred stock as supplementary capital. (a) Scope. A State savings association must comply with this section in order to include subordinated debt securities or mandatorily redeemable preferred stock (``covered securities'') in supplementary capital (tier 2 capital) under part 324 of this chapter. If a State savings association does not include covered securities in supplementary capital, it is not required to comply with this section. * * * * * (c) * * * (1) * * * (i) * * * (G) State or refer to a document stating that the State savings association must obtain FDIC approval before the voluntarily prepayment of principal on subordinated debt securities, the acceleration of payment of principal on subordinated debt securities, or the voluntarily redemption of mandatorily redeemable preferred stock (other than scheduled redemptions), if the State savings association is undercapitalized, significantly undercapitalized, or critically undercapitalized as described in subpart H of part 324 of this chapter, fails to meet the regulatory capital requirements in part 324, or would fail to meet any of these standards following the payment. * * * * * (d) * * * (2) * * * (ii) The State savings association is at least adequately capitalized under subpart H of part 324 of this chapter and meets the regulatory capital requirements in part 324. * * * * * 0 51. Section 390.343 is amended by revising paragraphs (b) and (d) to read as follows: Sec. 390.343 What is a capital distribution? * * * * * (b) Your payment to repurchase, redeem, retire or otherwise acquire any of your shares or other ownership interests, any payment to repurchase, redeem, retire, or otherwise acquire debt instruments included in your total capital under part 324 of this chapter, and any extension of credit to finance an affiliate's acquisition of your shares or interests; * * * * * (d) Any other distribution charged against your capital accounts if you would not be well capitalized, as set forth in subpart H of part 324 of this chapter, following the distribution; and * * * * * 0 52. Section 390.344 is amended by revising the definition of Capital to read as follows: Sec. 390.344 Definitions applicable to capital distributions. * * * * * Capital means total capital, as computed under part 324 of this chapter. * * * * * Sec. 390.345 [Amended] 0 53. Section 390.345 is amended as follows: 0 a. In paragraph (a)(3), by removing ``Sec. 390.453(b)(2)'' and adding in its place ``subpart H of part 324 of this chapter.'' 0 b. In paragraph (b), by removing ``Sec. 390.453(b)(1)'' and ``subpart Z'' wherever they appear and add in their place ``subpart H of part 324 of this chapter.'' 0 54. Section 390.348 is amended by revising paragraph (a) to read as follows: Sec. 390.348 Will the FDIC permit my capital distribution? * * * * * (a) You will be undercapitalized, significantly undercapitalized, or critically undercapitalized as set forth in subpart H of part 324 of this chapter, following the capital distribution. If so, the FDIC will determine if your capital distribution is permitted under 12 U.S.C. 1831o(d)(1)(B). * * * * * 0 55. Section 390.362 is amended by revising paragraphs (a)(1)(i) and (iii) to read as follows: Sec. 390.362 Who must give prior notice? (a) * * * (1) * * * (i) You do not comply with all minimum capital requirements under part 324 of this chapter; * * * * * [[Page 17744]] (iii) The FDIC has notified you, in connection with its review of a capital restoration plan required under section 38 of the Federal Deposit Insurance Act or subpart H of part 324 of this chapter or otherwise, that a notice is required under Sec. Sec. 390.360 through 390.368; or * * * * * Sec. Sec. 390.450 through 390.455 [Removed and Reserved] 0 56. Remove and reserve Sec. Sec. 390.450 through 390.455. 0 57. Section 390.457 is amended by revising paragraphs (a)(1)(i)(A) and (a)(1)(ii) to read as follows: Sec. 390.457 Procedures for reclassifying a State savings association based on criteria other than capital. (a) * * * (1) * * * (i) * * * (A) Pursuant to Sec. 324.403(d) of this chapter, the FDIC may reclassify a well capitalized State savings association as adequately capitalized or subject an adequately capitalized or undercapitalized institution to the supervisory actions applicable to the next lower capital category if: (1) The FDIC determines that the State savings association is in unsafe or unsound condition; or (2) The FDIC deems the State savings association to be engaged in an unsafe or unsound practice and not to have corrected the deficiency. * * * * * (ii) Prior notice to institution. Prior to taking action pursuant to Sec. 324.403(d) of this chapter, the FDIC shall issue and serve on the State savings association a written notice of the FDIC's intention to reclassify the State savings association. * * * * * Subpart Z--[Removed and Reserved] 0 58. Remove and reserve subpart Z. Dated at Washington, DC, on March 20, 2018. By order of the Board of Directors. Federal Deposit Insurance Corporation. Valerie Best, Assistant Executive Secretary. [FR Doc. 2018-06881 Filed 4-23-18; 8:45 am] BILLING CODE 6714-01-P
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capital rules would replace the to, an information collection unless it List of Subjects
superseded capital rules for all FDIC- displays a currently valid Office of
12 CFR Part 303
supervised institutions as of January 1, Management and Budget (OMB) control
2015. This final rule solely removes the number. The FDIC reviewed the rule Administrative practice and
obsolete provisions of, and references and determined that it does not create procedure, Bank deposit insurance,
to, the superseded capital rules in the any new, or revise any existing, Banks, banking, Reporting and
CFR and imposes no new requirement collection of information under section recordkeeping requirements, Savings
on FDIC-supervised institutions. 3504(h) of the Paperwork Reduction Act associations.
Accordingly, the FDIC concludes that of 1980. Consequently, no information 12 CFR Part 308
good cause exists to publish the rule as collection request will be submitted to
final without a notice and opportunity the OMB for review. Administrative practice and
to comment. procedure, Bank deposit insurance,
C. Small Business Regulatory Banks, banking, Claims, Crime, Equal
Section 553(d)(3) of the APA provides
Enforcement Fairness Act access to justice, Fraud, Investigations,
that, for good cause found and
Lawyers, Penalties.
published with the rule, an agency does The Office of Management and Budget
not have to comply with the has determined that the final rule is not 12 CFR Part 324
requirement that a substantive rule be a ‘‘major rule’’ within the meaning of Administrative practice and
published not less than 30 days before the Small Business Regulatory procedure, Banks, banking, Reporting
its effective date.5 The final rule will be Enforcement Fairness Act of 1996 (Title and recordkeeping requirements,
effective immediately upon its II, Pub. L. 104–121). Savings associations.
publication in the Federal Register. The
D. The Treasury and General 12 CFR Part 325
FDIC invokes the good cause exception
Government Appropriations Act, 1999—
to the APA’s 30-day publication Banks, banking, Reporting and
Assessment of Federal Regulations and
requirement for the reasons discussed recordkeeping requirement.
Policies on Families
above.
12 CFR Part 327
IV. Regulatory Analyses The FDIC has determined that the
final rule will not affect family well- Bank deposit insurance, Banks,
A. Regulatory Flexibility Act being within the meaning of section 654 banking, Savings associations.
The Regulatory Flexibility Act, 5 of the Treasury and General 12 CFR Part 333
U.S.C. 601 et seq. (RFA), requires an Government Appropriations Act,
enacted as part of the Omnibus Banks, banking.
agency, in connection with a notice of
proposed rulemaking, to prepare an Consolidated and Emergency 12 CFR Part 337
Initial Regulatory Flexibility Analysis Supplemental Appropriations Act of Banks, banking, Reporting and
describing the impact of the proposed 1999 (Pub. L. 105–277, 112 Stat. 2681). recordkeeping requirements, Securities.
rule on small entities (defined by the E. Plain Language 12 CFR Part 347
Small Business Administration for
purposes of the RFA to include banking Section 722 of the Gramm-Leach- Authority delegations (Government
entities with total assets of $550 million Bliley Act requires the federal banking agencies), Bank deposit insurance,
or less) or to certify that the proposed agencies to use plain language in all Banks, banking, Credit, Foreign banking,
rule would not have a significant final rules published after January 1, Investments, Reporting and
economic impact on a substantial 2000. The FDIC has sought to present recordkeeping requirements, U.S.
number of small entities. The RFA also the final rule in a simple and Investments abroad.
requires an agency, in connection with straightforward manner.
12 CFR Part 349
a final rule, to prepare a Final F. Riegle Community Development and
Regulatory Flexibility Act (FRFA) Administrative practice and
Regulatory Improvement Act of 1994 procedure, Banks, banking, Holding
analysis describing the impact of the
final rule on small entities. Neither an Under the Riegle Community companies, Reporting and
IRFA nor FRFA is required, however, if Development and Regulatory recordkeeping requirements, Savings
the rule is issued under the APA Improvement Act of 1994, 12 U.S.C. associations, Swaps.
provision allowing the agency to forego 4802, (RCDRIA), there is a requirement 12 CFR Part 360
notice and comment rulemaking for that ‘‘[n]ew regulations and
amendments to regulations prescribed Savings associations.
good cause. Therefore, the FDIC has not
prepared either an IRFA or an FRFA in by a Federal banking agency which 12 CFR Part 362
connection with this final rule. impose additional reporting,
Administrative practice and
Nevertheless, the FDIC notes that the disclosures, or other new requirements
procedure, Authority delegations
final rule does not impose any burden on insured depository institutions shall
(Government agencies), Bank deposit
on small banking entities as it only take effect on the first day of a calendar
insurance, Banks, banking, Investments,
rescinds obsolete provisions in the quarter which begins on or after the date
Reporting and recordkeeping
FDIC’s CFR. on which the regulations are published
requirements.
in final form’’ absent a good cause
B. Paperwork Reduction Act determination by the agency.6 The final 12 CFR Part 363
jstallworth on DSKBBY8HB2PROD with RULES
In accordance with the requirements rule imposes no additional reporting, Accounting, Administrative practice
of the Paperwork Reduction Act of 1995 disclosure, or other new requirements and procedure, Banks, banking,
(44 U.S.C. 3501–3521), the FDIC may on insured depository institutions and Reporting and recordkeeping
not conduct or sponsor, and a therefore is not subject to the effective requirements.
respondent is not required to respond date requirement in RCDRIA.
12 CFR Part 364
55 U.S.C. 553(d)(3). 6 12 U.S.C. 4802(b). Banks, banking, Information.
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to fulfill a guarantee of a capital §§ 325.201 through 325.207 [Redesignated PART 333—EXTENSION OF
restoration plan made pursuant to as §§ 325.1 through 325.7] CORPORATE POWERS
section 38(e)(2) of the FDI Act shall ■ 18. Redesignate §§ 325.201 through
subject the bank to the assessment of 325.207 as §§ 325.1 through 325.7, ■ 24. The authority citation for part 333
civil money penalties pursuant to respectively. continues to read as follows:
section 8(i)(2)(A) of the FDI Act. ■ 19. Amend newly redesignated Authority: 12 U.S.C. 1816, 1818, 1819
(c) Other enforcement action. In § 325.1 by revising paragraph (c)(5) to (‘‘Seventh’’, ‘‘Eighth’’ and ‘‘Tenth’’), 1828,
addition to the actions described in read as follows: 1828(m), 1831p–1(c).
paragraphs (a) and (b) of this section,
the FDIC may seek enforcement of the § 325.1 Authority, purpose, and ■ 25. Section 333.4 is amended by
provisions of section 38 or subpart H of reservation of authority. revising the fourth sentence in
part 324 of this chapter through any * * * * * paragraph (a) to read as follows:
other judicial or administrative (c) * * * § 333.4 Conversions from mutual to stock
proceeding authorized by law. (5) Notice and comment procedures: form.
* * * * * In exercising its authority to require
different or additional stress tests and (a) Scope. * * * As determined by
PART 324—CAPITAL ADEQUACY OF different or additional scenarios the Board of Directors of the FDIC on a
FDIC-SUPERVISED INSTITUTIONS (including components for the case-by-case basis, the requirements of
scenarios) under paragraph (c)(2) of this paragraphs (d), (e), and (f) of this section
■ 12. The authority citation for part 324 section, the Corporation will apply do not apply to mutual-to-stock
continues to read as follows: notice and response procedures in the conversions of insured mutual state
same manner and to the same extent as savings banks whose capital category
Authority: 12 U.S.C. 1815(a), 1815(b), under § 324.403 of this chapter is
1816, 1818(a), 1818(b), 1818(c), 1818(t), the notice and response procedures in
1819(Tenth), 1828(c), 1828(d), 1828(i), 12 CFR 324.5, as appropriate. ‘‘undercapitalized’’, ‘‘significantly
1828(n), 1828(o), 1831o, 1835, 3907, 3909, * * * * * undercapitalized’’ or ‘‘critically
4808; 5371; 5412; Pub.L. 102–233, 105 Stat. undercapitalized’’. * * *
1761, 1789, 1790 (12 U.S.C. 1831n note); Appendices A, B, C, and D [Removed] * * * * *
Pub.L. 102–242, 105 Stat. 2236, 2355, as
amended by Pub.L. 103–325, 108 Stat. 2160,
■ 20. Remove appendices A, B, C, and
PART 337—UNSAFE AND UNSOUND
2233 (12 U.S.C. 1828 note); Pub.L. 102–242, D.
BANKING PRACTICES
105 Stat. 2236, 2386, as amended by Pub.L.
102–550, 106 Stat. 3672, 4089 (12 U.S.C. PART 327—ASSESSMENTS
■ 26. The authority citation for part 337
1828 note); Pub.L. 111–203, 124 Stat. 1376,
1887 (15 U.S.C. 78o–7 note). ■ 21. The authority citation for part 327 continues to read as follows:
continues to read as follows: Authority: 12 U.S.C. 375a(4), 375b,
■ 13. Section 324.22 is amended by Authority: 12 U.S.C. 1441, 1813, 1815, 1463(a)(1), 1816, 1818(a), 1818(b), 1819,
revising footnote 22 in paragraph 1817–19, 1821. 1820(d), 1828(j)(2), 1831, 1831f, 5412.
(b)(2)(iii) to read as follows:
■ 22. Appendix A to subpart A of part ■ 27. Section 337.6 is amended by
§ 324.22 Regulatory capital adjustments 327 is amended by revising footnote 5 revising footnote 12 in paragraph
and deductions. in section VI to read as follows: (a)(3)(i) and the second sentence in
* * * * * footnote 13 in paragraph (a)(3)(iii) to
Appendix A to Subpart A of Part 327—
(b) * * * Method to Derive Pricing Multipliers read as follows:
(2) * * * and Uniform Amount § 337.6 Brokered deposits.
(iii) * * * * * * * * * * * * *
22 These rules include the regulatory
VI. * * * (a) * * *
capital requirements set forth at 12 CFR 5 Market risk is defined in 12 CFR 324.202.
part 3 (OCC); 12 CFR part 217 (Board); (3) * * *
■ 23. Appendix C to subpart A of part
12 CFR part 324 (FDIC). 327 is amended by revising the (i) * * *
* * * * * 12 For the most part, the capital
appendix heading and the first and
second sentences in the first paragraph measure terms are defined in the
PART 325—ANNUAL STRESS TEST in section I.A.5 to read as follows: following regulations: FDIC—12 CFR
part 324, subpart H; Board of Governors
■ 14. The authority citation for part 325 Appendix C to Subpart A to Part 327— of the Federal Reserve System—12 CFR
continues to read as follows: Description of Concentration Measures part 208; and Office of the Comptroller
Authority: 12 U.S.C. 5365(i)(2), 12 U.S.C. I. * * * of the Currency—12 CFR part 6.
5412(b)(2)(C), 12 U.S.C. 1818, 12 U.S.C. A. * * * * * * * *
1819(a)(Tenth), 12 U.S.C. 1831o, and 12 5. * * *
U.S.C. 1831p–1. Higher-risk securitizations are defined as (iii) * * *
securitization exposures (except 13 * * * Provisions specifying the
■ 15. The heading for part 325 is revised securitizations classified as trading book), effective date of determination of capital
to read as set forth above. where, in aggregate, more than 50 percent of category are generally published in the
the assets backing the securitization meet
jstallworth on DSKBBY8HB2PROD with RULES
following regulations: FDIC—12 CFR
Subparts A and B [Removed] either the criteria for higher-risk C & I loans
or securities, higher-risk consumer loans, or
324.402; Board of Governors of the
■ 16. Remove subparts A and B. nontraditional mortgage loans, except those Federal Reserve System—12 CFR part
classified as trading book. A securitization 208, subpart D; and Office of the
Subpart C [Amended] exposure is as defined in 12 CFR 324.2, as Comptroller of the Currency—12 CFR
it may be amended from time to time. * * * 6.3.
■ 17. Remove the heading for subpart C. * * * * * * * * * *
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■40. Appendix A to part 363 is Appendix A to Part 363—Guidelines
amended by revising Table 1 to and Interpretations
Appendix A to read as follows: * * * * *
TABLE 1 TO APPENDIX A—DESIGNATED FEDERAL LAWS AND REGULATIONS APPLICABLE TO:
State
State member Savings
National banks non-member
banks associations
banks
Insider Loans—Parts and/or Sections of Title 12 of the United States Code
375a ............................... Loans to Executive Officers of Banks ................. √ √ (A) (A)
375b ............................... Extensions of Credit to Executive Officers, Di- √ √ (A) (A)
rectors, and Principal Shareholders of Banks.
1468(b) .......................... Extensions of Credit to Executive Officers, Di- ........................ ........................ ........................ √
rectors, and Principal Shareholders.
1828(j)(2) ....................... Extensions of Credit to Officers, Directors, and ........................ ........................ √ ........................
Principal Shareholders.
1828(j)(3)(B) .................. Extensions of Credit to Officers, Directors, and (B) ........................ (C) ........................
Principal Shareholders.
Parts and/or Sections of Title 12 of the Code of Federal Regulations
31 ................................... Extensions of Credit to Insiders .......................... √ ........................ ........................ ........................
32 ................................... Lending Limits ..................................................... √ ........................ ........................ ........................
215 ................................. Loans to Executive Officers, Directors, and Prin- √ √ (D) (E)
cipal Shareholders of Member Banks.
337.3 .............................. Limits on Extensions of Credit to Executive Offi- ........................ ........................ √ ........................
cers, Directors, and Principal Shareholders of
Insured Nonmember Banks.
390.338 (state savings Loans by Savings Associations to Their Execu- ........................ ........................ ........................ √
associations). tive Officers, Directors, and Principal Share-
holders.
Dividend Restrictions—Parts and/or Sections of Title 12 of the United States Code
56 ................................... Prohibition on Withdrawal of Capital and Un- √ √ ........................ ........................
earned Dividends.
60 ................................... Dividends and Surplus Fund ............................... √ √ ........................ ........................
1467a(f) ......................... Declaration of Dividend ....................................... ........................ ........................ ........................ √
1831o(d)(1) .................... Prompt Corrective Action—Capital Distributions √ √ √ √
Restricted.
Parts and/or Sections of Title 12 of the Code of Federal Regulations
5 Subpart E ................... Payment of Dividends ......................................... √ ........................ ........................ ........................
6.6 .................................. Prompt Corrective Action—Restrictions on √ ........................ ........................ ........................
Undercapitalized Institutions.
208.5 .............................. Dividends and Other Distributions ....................... ........................ √ ........................ ........................
208.45 ............................ Prompt Corrective Action—Restrictions on ........................ √ ........................ ........................
Undercapitalized Institutions.
324.405 .......................... Prompt Corrective Action—Restrictions on ........................ ........................ √ ........................
Undercapitalized Institutions.
390.342–.348 (state sav- Capital Distributions ............................................. ........................ ........................ ........................ √
ings associations).
390.455 (state savings Prompt Corrective Action—Restrictions on ........................ ........................ ........................ √
associations). Undercapitalized Institutions.
(A) Subsections (g) and (h) of section 22 of the Federal Reserve Act [12 U.S.C. 375a, 375b]
(B) Applies only to insured Federal branches of foreign banks.
(C) Applies only to insured State branches of foreign banks.
(D) See 12 CFR 337.3.
(E) See 12 CFR 390.338 (state savings associations).
PART 364—STANDARDS FOR SAFETY ■ 42. Appendix A to part 364 is A. * * *
AND SOUNDNESS amended by revising the last sentence in * * * Nothing in these Guidelines limits
the authority of the FDIC pursuant to section
jstallworth on DSKBBY8HB2PROD with RULES
section I.A. to read as follows:
38(i)(2)(F) of the FDI Act (12 U.S.C. 1831o)
■ 41. The authority citation in part 364 Appendix A to Part 364—Interagency and part 324 of title 12 of the Code of Federal
continues to read as follows: Guidelines Establishing Standards for Regulations.
Authority: 12 U.S.C. 1818 and 1819 Safety and Soundness * * * * *
(Tenth), 1831p–1; 15 U.S.C. 1681b, 1681s,
1681w, 6801(b), 6805(b)(1).
* * * * *
I. * * *
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![Federal Register / Vol. 83, No. 79 / Tuesday, April 24, 2018 / Rules and Regulations 17743
PART 365—REAL ESTATE LENDING insured state non-member banks, the term § 390.343 What is a capital distribution?
STANDARDS ‘‘total capital’’ is defined at 12 CFR 324.2. For * * * * *
national banks, the term ‘‘total capital’’ is (b) Your payment to repurchase,
■ 43. The authority citation for part 365 defined at 12 CFR 3.2. For state savings
redeem, retire or otherwise acquire any
continues to read as follows: associations, the term ‘‘total capital’’ is
defined at 12 CFR 324.2. of your shares or other ownership
Authority: 12 U.S.C. 1828(o) and 5101 et interests, any payment to repurchase,
seq.
* * * * * redeem, retire, or otherwise acquire debt
■ 49. Section 390.316 is amended by instruments included in your total
■ 44. Appendix A to subpart A of part revising paragraph (c) to read as follows:
365 is amended by revising footnote 2 capital under part 324 of this chapter,
to the ‘‘Loans in Excess of the § 390.316 With recourse. and any extension of credit to finance
Supervisory Loan-to-Value Limits’’ an affiliate’s acquisition of your shares
* * * * * or interests;
section to read as follows: (c) This definition does not apply for
purposes of determining the capital * * * * *
Appendix A to Subpart A of Part 365— (d) Any other distribution charged
Interagency Guidelines for Real Estate adequacy requirements under part 324
of this chapter. against your capital accounts if you
Lending Policies would not be well capitalized, as set
* * * * * ■ 50. Section 390.341 is amended by forth in subpart H of part 324 of this
Loans in Excess of the Supervisory revising paragraphs (a), (c)(1)(i)(G), and chapter, following the distribution; and
Loan-to-Value Limits (d)(2)(ii) to read as follows: * * * * *
* * * * * § 390.341 Inclusion of subordinated debt ■ 52. Section 390.344 is amended by
2 For state non-member banks and
securities and mandatorily redeemable revising the definition of Capital to read
state savings associations, ‘‘total preferred stock as supplementary capital. as follows:
capital’’ refers to that term described in (a) Scope. A State savings association
12 CFR 324.2. § 390.344 Definitions applicable to capital
must comply with this section in order distributions.
* * * * * to include subordinated debt securities
or mandatorily redeemable preferred * * * * *
PART 390—REGULATIONS Capital means total capital, as
stock (‘‘covered securities’’) in
TRANSFERRED FROM THE OFFICE OF computed under part 324 of this
supplementary capital (tier 2 capital)
THRIFT SUPERVISION chapter.
under part 324 of this chapter. If a State
savings association does not include * * * * *
■ 45. The authority citation for part 390
covered securities in supplementary § 390.345 [Amended]
is revised to read as follows:
capital, it is not required to comply with
Authority: 12 U.S.C. 1819. this section. ■ 53. Section 390.345 is amended as
follows:
§ 390.101 [Amended] * * * * * ■ a. In paragraph (a)(3), by removing
(c) * * * ‘‘§ 390.453(b)(2)’’ and adding in its place
■ 46. Section 390.101 is amended in
(1) * * * ‘‘subpart H of part 324 of this chapter.’’
paragraph (f) by removing ‘‘subpart Z’’ (i) * * *
and adding in its place ‘‘12 CFR part ■ b. In paragraph (b), by removing
(G) State or refer to a document ‘‘§ 390.453(b)(1)’’ and ‘‘subpart Z’’
324.’’ stating that the State savings association wherever they appear and add in their
■ 47. Section 390.264 is revised to read must obtain FDIC approval before the place ‘‘subpart H of part 324 of this
as follows: voluntarily prepayment of principal on chapter.’’
subordinated debt securities, the
§ 390.264 Real estate lending standards; acceleration of payment of principal on ■ 54. Section 390.348 is amended by
purpose and scope. subordinated debt securities, or the revising paragraph (a) to read as follows:
This section, and § 390.265, issued voluntarily redemption of mandatorily
pursuant to section 18(o) of the Federal § 390.348 Will the FDIC permit my capital
redeemable preferred stock (other than distribution?
Deposit Insurance Act, (12 U.S.C. scheduled redemptions), if the State
1828(o)), prescribe standards for real savings association is undercapitalized, * * * * *
estate lending to be used by State (a) You will be undercapitalized,
significantly undercapitalized, or
savings associations and all their significantly undercapitalized, or
critically undercapitalized as described
includable subsidiaries, as defined in critically undercapitalized as set forth in
in subpart H of part 324 of this chapter,
part 324 of this chapter, over which the subpart H of part 324 of this chapter,
fails to meet the regulatory capital
State savings associations exercise following the capital distribution. If so,
requirements in part 324, or would fail
control, in adopting internal real estate the FDIC will determine if your capital
to meet any of these standards following
lending policies. distribution is permitted under 12
the payment.
U.S.C. 1831o(d)(1)(B).
■ 48. The appendix to § 390.265 is * * * * *
amended by revising footnote 4 to read * * * * *
(d) * * *
as follows: ■ 55. Section 390.362 is amended by
(2) * * *
(ii) The State savings association is at revising paragraphs (a)(1)(i) and (iii) to
§ 390.265 Real estate lending standards. read as follows:
least adequately capitalized under
* * * * *
jstallworth on DSKBBY8HB2PROD with RULES
subpart H of part 324 of this chapter and § 390.362 Who must give prior notice?
Appendix to § 390.265—Interagency meets the regulatory capital (a) * * *
Guidelines for Real Estate Lending requirements in part 324. (1) * * *
Policies * * * * * (i) You do not comply with all
* * * * * ■ 51. Section 390.343 is amended by minimum capital requirements under
4For the state member banks, the term revising paragraphs (b) and (d) to read part 324 of this chapter;
‘‘total capital’’ is defined at 12 CFR 217.2. For as follows: * * * * *
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![17744 Federal Register / Vol. 83, No. 79 / Tuesday, April 24, 2018 / Rules and Regulations
(iii) The FDIC has notified you, in DEPARTMENT OF TRANSPORTATION docket, including the name of the
connection with its review of a capital individual sending the comment (or
restoration plan required under section Federal Aviation Administration signing the comment for an association,
38 of the Federal Deposit Insurance Act business, labor union, etc.). DOT’s
or subpart H of part 324 of this chapter 14 CFR Part 25 complete Privacy Act Statement can be
or otherwise, that a notice is required [Docket No. FAA–2017–0637; Special found in the Federal Register published
under §§ 390.360 through 390.368; or Conditions No. 25–724–SC] on April 11, 2000 (65 FR 19477–19478).
Docket: Background documents or
* * * * * comments received may be read at
Special Conditions: Textron Aviation
§§ 390.450 through 390.455 [Removed and Inc. Model 700 Airplane; Occupant http://www.regulations.gov/ at any time.
Reserved] Protection for Side-Facing Seats Follow the online instructions for
Installed Forward of Aft-Facing Seats accessing the docket or go to Docket
■ 56. Remove and reserve §§ 390.450 Operations in Room W12–140 of the
through 390.455. AGENCY: Federal Aviation West Building Ground Floor at 1200
Administration (FAA), DOT. New Jersey Avenue SE, Washington,
■ 57. Section 390.457 is amended by ACTION: Final special conditions; request DC, between 9 a.m. and 5 p.m., Monday
revising paragraphs (a)(1)(i)(A) and for comments. through Friday, except Federal holidays.
(a)(1)(ii) to read as follows: FOR FURTHER INFORMATION CONTACT:
SUMMARY: These special conditions are
issued for the Textron Aviation Inc. Alan Sinclair, FAA, Airframe and Cabin
§ 390.457 Procedures for reclassifying a
Safety Section, AIR–675, Transport
State savings association based on criteria (Textron) Model 700 airplane. This
Standards Branch, Policy and
other than capital. airplane will have a novel or unusual
Innovation Division, Aircraft
design feature when compared to the
(a) * * * Certification Service, 1601 Lind Avenue
state of technology envisioned in the
(1) * * * SW, Renton, Washington 98057–3356;
airworthiness standards for transport-
telephone 425–227–2195; facsimile
(i) * * * category airplanes. This design feature
425–227–1320.
(A) Pursuant to § 324.403(d) of this is side-facing seats installed forward of
SUPPLEMENTARY INFORMATION: The
aft-facing seats. The applicable
chapter, the FDIC may reclassify a well substance of these special conditions
airworthiness regulations do not contain
capitalized State savings association as has been published in the Federal
adequate or appropriate safety standards
adequately capitalized or subject an Register for public comment in several
for this design feature. These special
adequately capitalized or conditions contain the additional safety prior instances with no substantive
undercapitalized institution to the standards that the Administrator comments received. The FAA therefore
supervisory actions applicable to the considers necessary to establish a level finds it unnecessary to delay the
next lower capital category if: of safety equivalent to that established effective date and finds that good cause
by the existing airworthiness standards. exists for making these special
(1) The FDIC determines that the State
conditions effective upon publication in
savings association is in unsafe or DATES: This action is effective on
the Federal Register.
unsound condition; or Textron on April 24, 2018. Send your
(2) The FDIC deems the State savings comments by June 8, 2018. Comments Invited
association to be engaged in an unsafe ADDRESSES: Send comments identified We invite interested people to take
or unsound practice and not to have by docket number FAA–2017–0637 part in this rulemaking by sending
corrected the deficiency. using any of the following methods: written comments, data, or views. The
• Federal eRegulations Portal: Go to most helpful comments reference a
* * * * * http://www.regulations.gov/and follow specific portion of the special
(ii) Prior notice to institution. Prior to the online instructions for sending your conditions, explain the reason for any
taking action pursuant to § 324.403(d) of comments electronically. recommended change, and include
this chapter, the FDIC shall issue and • Mail: Send comments to Docket supporting data.
serve on the State savings association a Operations, M–30, U.S. Department of We will consider all comments we
written notice of the FDIC’s intention to Transportation (DOT), 1200 New Jersey receive by the closing date for
reclassify the State savings association. Avenue SE, Room W12–140, West comments. We may change these special
Building Ground Floor, Washington, conditions based on the comments we
* * * * *
DC, 20590–0001. receive.
• Hand Delivery or Courier: Take
Subpart Z—[Removed and Reserved] Background
comments to Docket Operations in
Room W12–140 of the West Building On November 20, 2014, Textron
■ 58. Remove and reserve subpart Z. Ground Floor at 1200 New Jersey applied for a type certificate for their
Dated at Washington, DC, on March 20, Avenue SE, Washington, DC, between 9 new Model 700 airplane. The Model 700
2018. a.m. and 5 p.m., Monday through airplane is a turbofan-powered
By order of the Board of Directors. Friday, except Federal holidays. executive-jet airplane with seating for
Federal Deposit Insurance Corporation. • Fax: Fax comments to Docket two crewmembers and 12 passengers.
Operations at 202–493–2251. This airplane will have a maximum
Valerie Best, Privacy: The FAA will post all takeoff weight of 38,514 pounds.
jstallworth on DSKBBY8HB2PROD with RULES
Assistant Executive Secretary. comments it receives, without change,
[FR Doc. 2018–06881 Filed 4–23–18; 8:45 am] to http://www.regulations.gov/, Type Certification Basis
BILLING CODE 6714–01–P including any personal information the Under the provisions of title 14, Code
commenter provides. Using the search of Federal Regulations (14 CFR) 21.17,
function of the docket website, anyone Textron must show that the Model 700
can find and read the electronic form of airplane meets the applicable provisions
all comments received into any FAA of 14 CFR part 25, as amended by
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Document Created: 2018-04-24 00:39:01
Document Modified: 2018-04-24 00:39:01
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | The final rule is effective April 24, 2018. | |
| Contact | Benedetto Bosco, Chief, Capital Policy Section; [email protected], Capital Markets Branch, Division of Risk Management Supervision, (202) 898-6888; Catherine Wood, Counsel, [email protected]; Michael Phillips, Supervisory Counsel, [email protected], Supervision and Legislation Branch, Legal Division, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. | |
| FR Citation | 83 FR 17737 | |
| RIN Number | 3064-AE51 | |
| CFR Citation | 12
CFR
303 12 CFR 308 12 CFR 324 12 CFR 325 12 CFR 327 12 CFR 333 12 CFR 337 12 CFR 347 12 CFR 349 12 CFR 360 12 CFR 362 12 CFR 363 12 CFR 364 12 CFR 365 12 CFR 390 | |
| CFR Associated | Administrative Practice and Procedure; Bank Deposit Insurance; Banks; Banking; Reporting and Recordkeeping Requirements; Savings Associations; Claims; Crime; Equal Access to Justice; Fraud; Investigations; Lawyers; Penalties; Reporting and Recordkeeping Requirement; Securities; Authority Delegations (government Agencies); Credit; Foreign Banking; Investments; U; S; Investments Abroad; Holding Companies; Swaps; Accounting; Information; Mortgages; Advertising; Aged; Civil Rights; Conflict of Interests; Equal Employment Opportunity; Fair Housing; Government Employees and Individuals with Disabilities |
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