This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
77345
Vol. 85, No. 232
Wednesday, December 2, 2020
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 3, 4, and 52
[Docket ID OCC–2020–0044]
RIN 1557–AF06
FEDERAL RESERVE SYSTEM
12 CFR Parts 208, 211, 212, 217, 225,
235, and 238
[Docket No. R–1731]
RIN 7100–AG01
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 304, 324, 337, 347, and
348
RIN 3064–AF67
Temporary Asset Thresholds
AGENCY: Office of the Comptroller of the
Currency, Treasury (OCC); Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Interim final rule, request for
public comment.
SUMMARY: To mitigate temporary
transition costs on banking
organizations related to the coronavirus
disease 2019 (COVID event), the OCC,
Board, and the FDIC (together, the
agencies) are issuing an interim final
rule to permit national banks, savings
associations, state banks, bank holding
companies, savings and loan holding
companies, and U.S. branches and
agencies of foreign banking
organizations with under $10 billion in
total assets as of December 31, 2019,
(community banking organizations) to
use asset data as of December 31, 2019,
in order to determine the applicability
of various regulatory asset thresholds
during calendar years 2020 and 2021.
For the same reasons, the Board is
temporarily revising the instructions to
a number of its regulatory reports to
provide that community banking
organizations may use asset data as of
December 31, 2019, in order to
determine reporting requirements for
reports due in calendar years 2020 or
2021.
DATES:
Effective date: This rule is effective on
December 2, 2020.
Comment date: Comments must be
received on or before February 1, 2021.
ADDRESSES: Comments should be
directed to:
OCC: You may submit comments to
the OCC by any of the methods set forth
below. Commenters are encouraged to
submit comments through the Federal
eRulemaking Portal, if possible. Please
use the title ‘‘Temporary Asset
Thresholds’’ to facilitate the
organization and distribution of the
comments. You may submit comments
by any of the following methods:
• Federal eRulemaking Portal—
Regulations.gov Classic or
Regulations.gov Beta.
Regulations.gov Classic: Go to https://
www.regulations.gov/. Enter ‘‘Docket ID
OCC–2020–0044’’ in the Search Box and
click ‘‘Search.’’ Click on ‘‘Comment
Now’’ to submit public comments. For
help with submitting effective
comments, please click on ‘‘View
Commenter’s Checklist.’’ Click on the
‘‘Help’’ tab on the Regulations.gov home
page to get information on using
Regulations.gov, including instructions
for submitting public comments.
Regulations.gov Beta: Go to https://
beta.regulations.gov/ or click ‘‘Visit
New Regulations.gov Site’’ from the
Regulations.gov classic homepage. Enter
‘‘Docket ID OCC–2020–0044’’ in the
Search Box and click ‘‘Search.’’ Public
comments can be submitted via the
‘‘Comment’’ box below the displayed
document information or click on the
document title and click the
‘‘Comment’’ box on the top-left side of
the screen. For help with submitting
effective comments, please click on
‘‘Commenter’s Checklist.’’ For
assistance with the Regulations.gov Beta
site, please call (877) 378–5457 (toll
free) or (703) 454–9859 Monday–Friday,
9 a.m.–5 p.m. ET or email to
regulations@erulemakinghelpdesk.com.
• Mail: Chief Counsel’s Office, Attn:
Comment Processing, Office of the
Comptroller of the Currency, 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2020–0044’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish the comments on the
Regulations.gov website without
change, including any business or
personal information provided such as
name and address information, email
addresses, or phone numbers.
Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
rulemaking action by the following
methods:
• Regulations.gov Classic or
Regulations.gov Beta:
Regulations.gov Classic: Go to https://
www.regulations.gov/. Enter ‘‘Docket ID
OCC–2020–0044’’ in the Search box and
click ‘‘Search.’’ Click on ‘‘Open Docket
Folder’’ on the right side of the screen.
Comments and supporting materials can
be viewed and filtered by clicking on
‘‘View all documents and comments in
this docket’’ and then using the filtering
tools on the left side of the screen. Click
on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
Regulations.gov Beta: Go to https://
beta.regulations.gov/ or click ‘‘Visit
New Regulations.gov Site’’ from the
Regulations.gov classic homepage. Enter
‘‘Docket ID OCC 2020–0044’’ in the
Search Box and click ‘‘Search.’’ Click on
the ‘‘Comments’’ tab. Comments can be
viewed and filtered by clicking on the
‘‘Sort By’’ drop-down on the right side
of the screen or the ‘‘Refine Results’’
options on the left side of the screen.
Supporting Materials can be viewed by
clicking on the ‘‘Documents’’ tab and
filtered by clicking on the ‘‘Sort By’’
drop-down on the right side of the
VerDate Sep<11>2014 20:31 Dec 01, 2020 Jkt 253001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\02DER1.SGM 02DER1
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
77345
Vol. 85, No. 232
Wednesday, December 2, 2020
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 3, 4, and 52
[Docket ID OCC–2020–0044]
RIN 1557–AF06
FEDERAL RESERVE SYSTEM
12 CFR Parts 208, 211, 212, 217, 225,
235, and 238
[Docket No. R–1731]
RIN 7100–AG01
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 304, 324, 337, 347, and
348
RIN 3064–AF67
Temporary Asset Thresholds
AGENCY: Office of the Comptroller of the
Currency, Treasury (OCC); Board of
Governors of the Federal Reserve
System (Board); and Federal Deposit
Insurance Corporation (FDIC).
ACTION: Interim final rule, request for
public comment.
SUMMARY: To mitigate temporary
transition costs on banking
organizations related to the coronavirus
disease 2019 (COVID event), the OCC,
Board, and the FDIC (together, the
agencies) are issuing an interim final
rule to permit national banks, savings
associations, state banks, bank holding
companies, savings and loan holding
companies, and U.S. branches and
agencies of foreign banking
organizations with under $10 billion in
total assets as of December 31, 2019,
(community banking organizations) to
use asset data as of December 31, 2019,
in order to determine the applicability
of various regulatory asset thresholds
during calendar years 2020 and 2021.
For the same reasons, the Board is
temporarily revising the instructions to
a number of its regulatory reports to
provide that community banking
organizations may use asset data as of
December 31, 2019, in order to
determine reporting requirements for
reports due in calendar years 2020 or
2021.
DATES:
Effective date: This rule is effective on
December 2, 2020.
Comment date: Comments must be
received on or before February 1, 2021.
ADDRESSES: Comments should be
directed to:
OCC: You may submit comments to
the OCC by any of the methods set forth
below. Commenters are encouraged to
submit comments through the Federal
eRulemaking Portal, if possible. Please
use the title ‘‘Temporary Asset
Thresholds’’ to facilitate the
organization and distribution of the
comments. You may submit comments
by any of the following methods:
• Federal eRulemaking Portal—
Regulations.gov Classic or
Regulations.gov Beta.
Regulations.gov Classic: Go to https://
www.regulations.gov/. Enter ‘‘Docket ID
OCC–2020–0044’’ in the Search Box and
click ‘‘Search.’’ Click on ‘‘Comment
Now’’ to submit public comments. For
help with submitting effective
comments, please click on ‘‘View
Commenter’s Checklist.’’ Click on the
‘‘Help’’ tab on the Regulations.gov home
page to get information on using
Regulations.gov, including instructions
for submitting public comments.
Regulations.gov Beta: Go to https://
beta.regulations.gov/ or click ‘‘Visit
New Regulations.gov Site’’ from the
Regulations.gov classic homepage. Enter
‘‘Docket ID OCC–2020–0044’’ in the
Search Box and click ‘‘Search.’’ Public
comments can be submitted via the
‘‘Comment’’ box below the displayed
document information or click on the
document title and click the
‘‘Comment’’ box on the top-left side of
the screen. For help with submitting
effective comments, please click on
‘‘Commenter’s Checklist.’’ For
assistance with the Regulations.gov Beta
site, please call (877) 378–5457 (toll
free) or (703) 454–9859 Monday–Friday,
9 a.m.–5 p.m. ET or email to
regulations@erulemakinghelpdesk.com.
• Mail: Chief Counsel’s Office, Attn:
Comment Processing, Office of the
Comptroller of the Currency, 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2020–0044’’ in your comment.
In general, the OCC will enter all
comments received into the docket and
publish the comments on the
Regulations.gov website without
change, including any business or
personal information provided such as
name and address information, email
addresses, or phone numbers.
Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
include any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
rulemaking action by the following
methods:
• Regulations.gov Classic or
Regulations.gov Beta:
Regulations.gov Classic: Go to https://
www.regulations.gov/. Enter ‘‘Docket ID
OCC–2020–0044’’ in the Search box and
click ‘‘Search.’’ Click on ‘‘Open Docket
Folder’’ on the right side of the screen.
Comments and supporting materials can
be viewed and filtered by clicking on
‘‘View all documents and comments in
this docket’’ and then using the filtering
tools on the left side of the screen. Click
on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov.
The docket may be viewed after the
close of the comment period in the same
manner as during the comment period.
Regulations.gov Beta: Go to https://
beta.regulations.gov/ or click ‘‘Visit
New Regulations.gov Site’’ from the
Regulations.gov classic homepage. Enter
‘‘Docket ID OCC 2020–0044’’ in the
Search Box and click ‘‘Search.’’ Click on
the ‘‘Comments’’ tab. Comments can be
viewed and filtered by clicking on the
‘‘Sort By’’ drop-down on the right side
of the screen or the ‘‘Refine Results’’
options on the left side of the screen.
Supporting Materials can be viewed by
clicking on the ‘‘Documents’’ tab and
filtered by clicking on the ‘‘Sort By’’
drop-down on the right side of the
VerDate Sep<11>2014 20:31 Dec 01, 2020 Jkt 253001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\02DER1.SGM 02DER1
77346 Federal Register / Vol. 85, No. 232 / Wednesday, December 2, 2020 / Rules and Regulations
1 See ‘‘Supervisory and Regulatory Actions in
Response to COVID–19,’’ available at https://
www.federalreserve.gov/supervisory-regulatory-
action-response-covid-19.htm.; ‘‘COVID–19
(Coronavirus),’’ available at https://occ.gov/topics/
supervision-and-examination/bank-operations/
covid-19-information/convid-19-info-index.html;
‘‘Coronavirus (COVID–19) Information for Bankers
and Consumers,’’ available at https://www.fdic.gov/
coronavirus/. See also ‘‘The FDIC Approves Interim
Final Rule to Provide Temporary Relief from Part
363 Audit and Reporting Requirements,’’ available
at https://www.fdic.gov/news/financial-institution-
letters/2020/fil20099.html and Final Rule
Mitigating the Deposit Insurance Assessment Effect
of Participation in the Paycheck Protection Program
(PPP), the PPP Liquidity Facility, and the Money
Market Mutual Fund Liquidity Facility at https://
www.fdic.gov/news/financial-institution-letters/
2020/fil20063.html.
2 The SBA’s PPP was created under the
Coronavirus Aid, Relief, and Economic Security Act
(CARES Act) in response to market distress caused
by the COVID–19 event. Public Law 116–136, 134
Stat. 281.
3 ‘‘Revised Interagency Statement on Loan
Modifications by Financial Institutions Working
with Customers Affected by the Coronavirus’’ (Apr.
7, 2020), available at https://www.occ.gov/news-
issuances/news-releases/2020/nr-ia-2020-50a.pdf.
4 Data derived from the Consolidated Reports of
Condition and Income (Call Report) and Financial
screen or the ‘‘Refine Results’’ options
on the left side of the screen. For
assistance with the Regulations.gov Beta
site please call (877) 378–5457 (toll free)
or (703) 454–9859 Monday–Friday, 9
a.m.–5 p.m. ET or email regulations@
erulemakinghelpdesk.com. The docket
may be viewed after the close of the
comment period in the same manner as
during the comment period.
Board: You may submit comments,
identified by Docket No. R–1731 and
RIN No. 7100–AG01, by any of the
following methods:
• Agency Web Site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
https://www.federalreserve.gov/apps/
foia/proposedregs.aspx.
• E-mail: regs.comments@
federalreserve.gov. Include docket
number and RIN in the subject line of
the message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Ann E. Misback, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue NW, Washington,
DC 20551.
All public comments are available
from the Board’s website at http://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons or
to remove sensitive PII at the
commenter’s request. Public comments
may also be viewed electronically or in
paper form in Room 146, 1709 New
York Avenue NW, Washington, DC
20006, between 9:00 a.m. and 5:00 p.m.
on weekdays.
FDIC: You may submit comments on
the notice of proposed rulemaking using
any of the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal.
Follow the instructions for submitting
comments on the agency website.
• Email: comments@fdic.gov. Include
RIN 3064–AF67 on the subject line of
the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments, Federal
Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
• Hand Delivery: Comments may be
hand delivered to the guard station at
the rear of the 550 17th Street NW
building (located on F Street) on
business days between 7 a.m. and 5 p.m.
• Public Inspection: All comments
received, including any personal
information provided, will be posted
generally without change to https://
www.fdic.gov/regulations/laws/federal.
FOR FURTHER INFORMATION CONTACT:
OCC: Alison MacDonald, Special
Counsel, or Kevin Korzeniewski,
Counsel, Chief Counsel’s Office, (202)
649–5490.
Board: Juan Climent, Assistant
Director, (202) 872–7526, Eric Kennedy,
Assistant Director, (202) 263–4887,
Nancy J. Oakes, Manager, (202) 452–
3413, Teresa Scott, Manager, (202) 973–
6114, Naima Jefferson, Lead Financial
Institution Policy Analyst, (202) 912–
4613, Daniel Newman, Senior Data
Governance Analyst, (202) 973–7409,
Senait Kahsay, Senior Financial
Institution Policy Analyst II, (202) 245–
4209, Joseph Willcox, Senior Financial
Institution Policy Analyst II, (202) 452–
3663, Division of Supervision and
Regulation; Laurie Schaffer, Deputy
General Counsel (202) 452–2272,
Benjamin McDonough, Associate
General Counsel, (202) 973–7432, Jonah
Kind, Counsel (202) 452–2045, Justyna
Bolter, Senior Attorney (202) 452–2686,
Christopher Danello, Attorney, (202)
736–1960, Legal Division, Board of
Governors of the Federal Reserve
System, 20th and C Streets NW,
Washington, DC 20551. For users of
Telecommunication Device for the Deaf
(TDD), (202) 263–4869.
FDIC: Rae-Ann Miller, Associate
Director, Risk Management Policy, (202)
898–3898, Bobby R. Bean, Associate
Director, Capital Markets, (202) 898–
6705; William Piervincenzi, Supervisory
Counsel, (202) 898–6957, Nefretete A.
Smith, Counsel, (202) 898–6851,
Michael B. Phillips, Counsel, (202) 898–
3581, Jennifer M. Jones, Counsel, (202)
898–6768, jennjones@fdic.gov,
Supervision and Legislation Branch,
Legal Division, Federal Deposit
Insurance Corporation, 550 17th Street
NW, Washington, DC 20429. For the
hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (800) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Discussion
A. Interim Final Rule
B. Reservation of Authority
C. Regulatory Reporting Changes
III. Request for Comment
IV. Administrative Law Matters
A. Administrative Procedure Act
B. Congressional Review Act
C. Paperwork Reduction Act
D. Regulatory Flexibility Act
E. Riegle Community Development and
Regulatory Improvement Act of 1994
F. Unfunded Mandates Reform Act of 1995
G. Use of Plain Language
I. Background
In light of strains in economic
conditions related to the COVID event
and stress in U.S. financial markets, the
agencies have taken a number of actions
intended to: (i) Restore market
functioning and support the flow of
credit to households, businesses, and
communities and (ii) increase flexibility
and reduce regulatory reporting burden.
Among those actions, the agencies have
issued a number of rules and
supervisory guidance communications
designed to mitigate the consequences
of the COVID event and to facilitate the
safe and effective operations of banking
organizations.1
Community banking organizations
have played an instrumental role in the
nation’s financial response to the
COVID event, and many have
experienced significant balance sheet
growth as a result of the COVID event
and the policy response to the event.
Policies encouraging banks to work with
their customers, such as the Small
Business Administration’s (SBA’s)
Paycheck Protection Program (PPP) 2
and the interagency statement
encouraging financial institutions to
work with borrowers affected by the
COVID event,3 have resulted in much-
needed emergency liquidity being
offered to small businesses, including,
but not limited to, individuals operating
sole proprietorships or acting as
independent contractors, certain
franchisees, nonprofit corporations,
veterans organizations, Tribal
businesses, and households. As a result,
during the COVID event many
community banking organizations have
experienced an unexpected and sharp
increase in assets, swelling their balance
sheets in some cases by more than 25
percent.4 Much of this growth,
VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\02DER1.SGM 02DER1
1 See ‘‘Supervisory and Regulatory Actions in
Response to COVID–19,’’ available at https://
www.federalreserve.gov/supervisory-regulatory-
action-response-covid-19.htm.; ‘‘COVID–19
(Coronavirus),’’ available at https://occ.gov/topics/
supervision-and-examination/bank-operations/
covid-19-information/convid-19-info-index.html;
‘‘Coronavirus (COVID–19) Information for Bankers
and Consumers,’’ available at https://www.fdic.gov/
coronavirus/. See also ‘‘The FDIC Approves Interim
Final Rule to Provide Temporary Relief from Part
363 Audit and Reporting Requirements,’’ available
at https://www.fdic.gov/news/financial-institution-
letters/2020/fil20099.html and Final Rule
Mitigating the Deposit Insurance Assessment Effect
of Participation in the Paycheck Protection Program
(PPP), the PPP Liquidity Facility, and the Money
Market Mutual Fund Liquidity Facility at https://
www.fdic.gov/news/financial-institution-letters/
2020/fil20063.html.
2 The SBA’s PPP was created under the
Coronavirus Aid, Relief, and Economic Security Act
(CARES Act) in response to market distress caused
by the COVID–19 event. Public Law 116–136, 134
Stat. 281.
3 ‘‘Revised Interagency Statement on Loan
Modifications by Financial Institutions Working
with Customers Affected by the Coronavirus’’ (Apr.
7, 2020), available at https://www.occ.gov/news-
issuances/news-releases/2020/nr-ia-2020-50a.pdf.
4 Data derived from the Consolidated Reports of
Condition and Income (Call Report) and Financial
screen or the ‘‘Refine Results’’ options
on the left side of the screen. For
assistance with the Regulations.gov Beta
site please call (877) 378–5457 (toll free)
or (703) 454–9859 Monday–Friday, 9
a.m.–5 p.m. ET or email regulations@
erulemakinghelpdesk.com. The docket
may be viewed after the close of the
comment period in the same manner as
during the comment period.
Board: You may submit comments,
identified by Docket No. R–1731 and
RIN No. 7100–AG01, by any of the
following methods:
• Agency Web Site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
https://www.federalreserve.gov/apps/
foia/proposedregs.aspx.
• E-mail: regs.comments@
federalreserve.gov. Include docket
number and RIN in the subject line of
the message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Ann E. Misback, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue NW, Washington,
DC 20551.
All public comments are available
from the Board’s website at http://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons or
to remove sensitive PII at the
commenter’s request. Public comments
may also be viewed electronically or in
paper form in Room 146, 1709 New
York Avenue NW, Washington, DC
20006, between 9:00 a.m. and 5:00 p.m.
on weekdays.
FDIC: You may submit comments on
the notice of proposed rulemaking using
any of the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal.
Follow the instructions for submitting
comments on the agency website.
• Email: comments@fdic.gov. Include
RIN 3064–AF67 on the subject line of
the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments, Federal
Deposit Insurance Corporation, 550 17th
Street NW, Washington, DC 20429.
• Hand Delivery: Comments may be
hand delivered to the guard station at
the rear of the 550 17th Street NW
building (located on F Street) on
business days between 7 a.m. and 5 p.m.
• Public Inspection: All comments
received, including any personal
information provided, will be posted
generally without change to https://
www.fdic.gov/regulations/laws/federal.
FOR FURTHER INFORMATION CONTACT:
OCC: Alison MacDonald, Special
Counsel, or Kevin Korzeniewski,
Counsel, Chief Counsel’s Office, (202)
649–5490.
Board: Juan Climent, Assistant
Director, (202) 872–7526, Eric Kennedy,
Assistant Director, (202) 263–4887,
Nancy J. Oakes, Manager, (202) 452–
3413, Teresa Scott, Manager, (202) 973–
6114, Naima Jefferson, Lead Financial
Institution Policy Analyst, (202) 912–
4613, Daniel Newman, Senior Data
Governance Analyst, (202) 973–7409,
Senait Kahsay, Senior Financial
Institution Policy Analyst II, (202) 245–
4209, Joseph Willcox, Senior Financial
Institution Policy Analyst II, (202) 452–
3663, Division of Supervision and
Regulation; Laurie Schaffer, Deputy
General Counsel (202) 452–2272,
Benjamin McDonough, Associate
General Counsel, (202) 973–7432, Jonah
Kind, Counsel (202) 452–2045, Justyna
Bolter, Senior Attorney (202) 452–2686,
Christopher Danello, Attorney, (202)
736–1960, Legal Division, Board of
Governors of the Federal Reserve
System, 20th and C Streets NW,
Washington, DC 20551. For users of
Telecommunication Device for the Deaf
(TDD), (202) 263–4869.
FDIC: Rae-Ann Miller, Associate
Director, Risk Management Policy, (202)
898–3898, Bobby R. Bean, Associate
Director, Capital Markets, (202) 898–
6705; William Piervincenzi, Supervisory
Counsel, (202) 898–6957, Nefretete A.
Smith, Counsel, (202) 898–6851,
Michael B. Phillips, Counsel, (202) 898–
3581, Jennifer M. Jones, Counsel, (202)
898–6768, jennjones@fdic.gov,
Supervision and Legislation Branch,
Legal Division, Federal Deposit
Insurance Corporation, 550 17th Street
NW, Washington, DC 20429. For the
hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (800) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Discussion
A. Interim Final Rule
B. Reservation of Authority
C. Regulatory Reporting Changes
III. Request for Comment
IV. Administrative Law Matters
A. Administrative Procedure Act
B. Congressional Review Act
C. Paperwork Reduction Act
D. Regulatory Flexibility Act
E. Riegle Community Development and
Regulatory Improvement Act of 1994
F. Unfunded Mandates Reform Act of 1995
G. Use of Plain Language
I. Background
In light of strains in economic
conditions related to the COVID event
and stress in U.S. financial markets, the
agencies have taken a number of actions
intended to: (i) Restore market
functioning and support the flow of
credit to households, businesses, and
communities and (ii) increase flexibility
and reduce regulatory reporting burden.
Among those actions, the agencies have
issued a number of rules and
supervisory guidance communications
designed to mitigate the consequences
of the COVID event and to facilitate the
safe and effective operations of banking
organizations.1
Community banking organizations
have played an instrumental role in the
nation’s financial response to the
COVID event, and many have
experienced significant balance sheet
growth as a result of the COVID event
and the policy response to the event.
Policies encouraging banks to work with
their customers, such as the Small
Business Administration’s (SBA’s)
Paycheck Protection Program (PPP) 2
and the interagency statement
encouraging financial institutions to
work with borrowers affected by the
COVID event,3 have resulted in much-
needed emergency liquidity being
offered to small businesses, including,
but not limited to, individuals operating
sole proprietorships or acting as
independent contractors, certain
franchisees, nonprofit corporations,
veterans organizations, Tribal
businesses, and households. As a result,
during the COVID event many
community banking organizations have
experienced an unexpected and sharp
increase in assets, swelling their balance
sheets in some cases by more than 25
percent.4 Much of this growth,
VerDate Sep<11>2014 16:10 Dec 01, 2020 Jkt 253001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\02DER1.SGM 02DER1