3247Federal Register / Vol. 85, No. 13 / Tuesday, January 21, 2020 / Rules and Regulations
1 Public Law 111–203, 124 Stat. 1376 (2010).
Reserve Act. For the purposes of
complying with § 215.5(d) of Federal
Reserve Board Regulation O, the
reference to ‘‘the amount specified for a
category of credit in paragraph (c) of this
section’’ shall be understood to refer to
the amount specified in paragraph (c)(2)
of this § 337.3.
(d) Definition. For purposes of this
section, FDIC-supervised institution
means an entity for which the FDIC is
the appropriate Federal banking agency
pursuant to section 3(q) of the FDI Act,
12 U.S.C. 1813(q).
■ 17. Revise § 337.11 to read as follows:
§ 337.11 Effect on other banking practices.
(a) Nothing in this part shall be
construed as restricting in any manner
the Corporation’s authority to deal with
any banking practice which is deemed
to be unsafe or unsound or otherwise
not in accordance with law, rule, or
regulation; or which violates any
condition imposed in writing by the
Corporation in connection with the
granting of any application or other
request by an FDIC-Supervised
institution, or any written agreement
entered into by such institution with the
Corporation. Compliance with the
provisions of this part shall not relieve
an FDIC-supervised institution from its
duty to conduct its operations in a safe
and sound manner nor prevent the
Corporation from taking whatever action
it deems necessary and desirable to deal
with specific acts or practices which,
although they do not violate the
provisions of this part, are considered
detrimental to the safety and sound
operation of the institution engaged
therein.
(b) Definition. FDIC-supervised
institution means an entity for which
the FDIC is the appropriate Federal
banking agency pursuant to section 3(q)
of the FDI Act, 12 U.S.C. 1813(q).
PART 353—SUSPICIOUS ACTIVITY
REPORTS
■ 18. The authority citation for part 353
is revised to read as follows:
Authority: 12 U.S.C. 1818, 1819; 31 U.S.C.
5318.
§ 353.1 [Amended]
■ 19. Revise § 353.1 to read as follows:
§ 353.1 Purpose and scope.
The purpose of this part is to ensure
that an FDIC supervised institution files
a Suspicious Activity Report when it
detects a known or suspected criminal
violation of federal law or a suspicious
transaction related to a money
laundering activity or a violation of the
Bank Secrecy Act. This part applies to
all FDIC supervised institutions.
■ 20. Amend § 353.2 by adding
paragraph (c) to read as follows:
§ 353.2 Definitions.
* * * * *
(c) FDIC-supervised institution means
an entity for which the FDIC is the
appropriate Federal banking agency
pursuant to section 3(q) of the FDI Act,
12 U.S.C. 1813(q).
§ 353.3 [Amended]
■ 21. Amend § 353.3 by:
■ a. Removing the term ‘‘A bank’’ and
adding in its place the term ‘‘An FDIC-
supervised institution’’ wherever it
appears;
■ b. Removing the term ‘‘a bank’’ and
adding in its place the term ‘‘an FDIC-
supervised institution’’ wherever it
appears;
■ c. Removing the term ‘‘an insured
state-licensed branch of a foreign bank’’
in paragraph (f) and adding in its place
the term ‘‘a foreign bank having an
insured branch’’;
■ d. Removing the term ‘‘Any bank’’ in
paragraph (g) and adding ‘‘An FDIC-
supervised institution’’ in its place;
■ e. Removing the term ‘‘any bank’’ in
paragraph (h) and adding ‘‘an FDIC-
supervised institution’’ in its place; and
■ f. Removing the term ‘‘the bank’’ and
adding in its place the term ‘‘the FDIC-
supervised institution’’ wherever it
appears.
PART 390—REGULATIONS
TRANSFERRED FROM THE OFFICE OF
THRIFT SUPERVISION
■ 22. The authority citation for part 390
is revised to read as follows:
Authority: 12 U.S.C. 1819.
Subpart F also issued under 5 U.S.C. 552;
559; 12 U.S.C. 2901 et seq.
Subpart G also issued under 12 U.S.C. 2810
et seq., 2901 et seq.; 15 U.S.C. 1691; 42 U.S.C.
1981, 1982, 3601–3619.
Subpart O also issued under 12 U.S.C.
1828.
Subpart Q also issued under 12 U.S.C.
1462; 1462a; 1463; 1464.
Subpart W also issued under 12 U.S.C.
1462a; 1463; 1464; 15 U.S.C. 78c; 78l; 78m;
78n; 78p; 78w.
Subpart Y also issued under 12
U.S.C.1831o.
Subpart S—[Removed and Reserved]
■ 23. Remove and reserve subpart S,
consisting of §§ 390.330 through
390.368.
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on December 12,
2019.
Annmarie H. Boyd,
Assistant Executive Secretary.
[FR Doc. 2019–27580 Filed 1–17–20; 8:45 am]
BILLING CODE 6714–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 390
RIN 3064–AF13
Removal of Transferred OTS
Regulations Regarding Regulatory
Reporting Requirements, Reports and
Audits of State Savings Associations
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Final rule.
SUMMARY: The Federal Deposit
Insurance Corporation (‘‘FDIC’’) is
adopting a final rule rescinding and
removing from the Code of Federal
Regulations the regulations regarding
regulatory reporting standards.
DATES: The final rule is effective on
February 20, 2020.
FOR FURTHER INFORMATION CONTACT:
Christine M. Bouvier, Assistant Chief
Accountant, (202) 898–7289, CBouvier@
FDIC.gov, Division of Risk Management
Supervision; Karen J. Currie, Senior
Examination Specialist, (202) 898–3981,
Division of Risk Management
Supervision; David M. Miles, Counsel,
Legal Division, (202) 898–3651.
SUPPLEMENTARY INFORMATION:
I. Policy Objectives
The policy objectives of the final rule
are twofold. The first is to simplify the
FDIC’s regulations by removing
unnecessary ones and thereby
improving ease of reference and public
understanding. The second is to
promote parity between State savings
associations and State nonmember
banks by having the regulatory reporting
requirements, regulatory reports and
audits of both classes of institutions
addressed in the same FDIC rules.
II. Background
Part 390, subpart R was included in
the regulations that were transferred
from the Office of Thrift Supervision
(‘‘OTS’’) to the FDIC on July 21, 2011,
in connection with the implementation
of title III of the Dodd-Frank Wall Street
Reform and Consumer Protection Act
(‘‘Dodd-Frank Act’’).1 Beginning July 21,
2011, the transfer date established by
VerDate Sep<11>2014 16:38 Jan 17, 2020 Jkt 250001 PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 E:\FR\FM\21JAR1.SGM 21JAR1
jbell on DSKJLSW7X2PROD with RULES
1 Public Law 111–203, 124 Stat. 1376 (2010).
Reserve Act. For the purposes of
complying with § 215.5(d) of Federal
Reserve Board Regulation O, the
reference to ‘‘the amount specified for a
category of credit in paragraph (c) of this
section’’ shall be understood to refer to
the amount specified in paragraph (c)(2)
of this § 337.3.
(d) Definition. For purposes of this
section, FDIC-supervised institution
means an entity for which the FDIC is
the appropriate Federal banking agency
pursuant to section 3(q) of the FDI Act,
12 U.S.C. 1813(q).
■ 17. Revise § 337.11 to read as follows:
§ 337.11 Effect on other banking practices.
(a) Nothing in this part shall be
construed as restricting in any manner
the Corporation’s authority to deal with
any banking practice which is deemed
to be unsafe or unsound or otherwise
not in accordance with law, rule, or
regulation; or which violates any
condition imposed in writing by the
Corporation in connection with the
granting of any application or other
request by an FDIC-Supervised
institution, or any written agreement
entered into by such institution with the
Corporation. Compliance with the
provisions of this part shall not relieve
an FDIC-supervised institution from its
duty to conduct its operations in a safe
and sound manner nor prevent the
Corporation from taking whatever action
it deems necessary and desirable to deal
with specific acts or practices which,
although they do not violate the
provisions of this part, are considered
detrimental to the safety and sound
operation of the institution engaged
therein.
(b) Definition. FDIC-supervised
institution means an entity for which
the FDIC is the appropriate Federal
banking agency pursuant to section 3(q)
of the FDI Act, 12 U.S.C. 1813(q).
PART 353—SUSPICIOUS ACTIVITY
REPORTS
■ 18. The authority citation for part 353
is revised to read as follows:
Authority: 12 U.S.C. 1818, 1819; 31 U.S.C.
5318.
§ 353.1 [Amended]
■ 19. Revise § 353.1 to read as follows:
§ 353.1 Purpose and scope.
The purpose of this part is to ensure
that an FDIC supervised institution files
a Suspicious Activity Report when it
detects a known or suspected criminal
violation of federal law or a suspicious
transaction related to a money
laundering activity or a violation of the
Bank Secrecy Act. This part applies to
all FDIC supervised institutions.
■ 20. Amend § 353.2 by adding
paragraph (c) to read as follows:
§ 353.2 Definitions.
* * * * *
(c) FDIC-supervised institution means
an entity for which the FDIC is the
appropriate Federal banking agency
pursuant to section 3(q) of the FDI Act,
12 U.S.C. 1813(q).
§ 353.3 [Amended]
■ 21. Amend § 353.3 by:
■ a. Removing the term ‘‘A bank’’ and
adding in its place the term ‘‘An FDIC-
supervised institution’’ wherever it
appears;
■ b. Removing the term ‘‘a bank’’ and
adding in its place the term ‘‘an FDIC-
supervised institution’’ wherever it
appears;
■ c. Removing the term ‘‘an insured
state-licensed branch of a foreign bank’’
in paragraph (f) and adding in its place
the term ‘‘a foreign bank having an
insured branch’’;
■ d. Removing the term ‘‘Any bank’’ in
paragraph (g) and adding ‘‘An FDIC-
supervised institution’’ in its place;
■ e. Removing the term ‘‘any bank’’ in
paragraph (h) and adding ‘‘an FDIC-
supervised institution’’ in its place; and
■ f. Removing the term ‘‘the bank’’ and
adding in its place the term ‘‘the FDIC-
supervised institution’’ wherever it
appears.
PART 390—REGULATIONS
TRANSFERRED FROM THE OFFICE OF
THRIFT SUPERVISION
■ 22. The authority citation for part 390
is revised to read as follows:
Authority: 12 U.S.C. 1819.
Subpart F also issued under 5 U.S.C. 552;
559; 12 U.S.C. 2901 et seq.
Subpart G also issued under 12 U.S.C. 2810
et seq., 2901 et seq.; 15 U.S.C. 1691; 42 U.S.C.
1981, 1982, 3601–3619.
Subpart O also issued under 12 U.S.C.
1828.
Subpart Q also issued under 12 U.S.C.
1462; 1462a; 1463; 1464.
Subpart W also issued under 12 U.S.C.
1462a; 1463; 1464; 15 U.S.C. 78c; 78l; 78m;
78n; 78p; 78w.
Subpart Y also issued under 12
U.S.C.1831o.
Subpart S—[Removed and Reserved]
■ 23. Remove and reserve subpart S,
consisting of §§ 390.330 through
390.368.
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on December 12,
2019.
Annmarie H. Boyd,
Assistant Executive Secretary.
[FR Doc. 2019–27580 Filed 1–17–20; 8:45 am]
BILLING CODE 6714–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 390
RIN 3064–AF13
Removal of Transferred OTS
Regulations Regarding Regulatory
Reporting Requirements, Reports and
Audits of State Savings Associations
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Final rule.
SUMMARY: The Federal Deposit
Insurance Corporation (‘‘FDIC’’) is
adopting a final rule rescinding and
removing from the Code of Federal
Regulations the regulations regarding
regulatory reporting standards.
DATES: The final rule is effective on
February 20, 2020.
FOR FURTHER INFORMATION CONTACT:
Christine M. Bouvier, Assistant Chief
Accountant, (202) 898–7289, CBouvier@
FDIC.gov, Division of Risk Management
Supervision; Karen J. Currie, Senior
Examination Specialist, (202) 898–3981,
Division of Risk Management
Supervision; David M. Miles, Counsel,
Legal Division, (202) 898–3651.
SUPPLEMENTARY INFORMATION:
I. Policy Objectives
The policy objectives of the final rule
are twofold. The first is to simplify the
FDIC’s regulations by removing
unnecessary ones and thereby
improving ease of reference and public
understanding. The second is to
promote parity between State savings
associations and State nonmember
banks by having the regulatory reporting
requirements, regulatory reports and
audits of both classes of institutions
addressed in the same FDIC rules.
II. Background
Part 390, subpart R was included in
the regulations that were transferred
from the Office of Thrift Supervision
(‘‘OTS’’) to the FDIC on July 21, 2011,
in connection with the implementation
of title III of the Dodd-Frank Wall Street
Reform and Consumer Protection Act
(‘‘Dodd-Frank Act’’).1 Beginning July 21,
2011, the transfer date established by
VerDate Sep<11>2014 16:38 Jan 17, 2020 Jkt 250001 PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 E:\FR\FM\21JAR1.SGM 21JAR1
jbell on DSKJLSW7X2PROD with RULES
3248 Federal Register / Vol. 85, No. 13 / Tuesday, January 21, 2020 / Rules and Regulations
2 12 U.S.C. 5411.
3 12 U.S.C. 5414(b).
4 76 FR 39246 (July 6, 2011).
5 12 U.S.C. 5412(c)(1).
6 12 U.S.C. 1813(q).
7 See 84 FR 52387 (Oct. 2, 2019). The FDIC
published a SNPR in the Federal Register relating
to the FDIC’s regulatory flexibility analysis on
October 9, 2019. See 84 FR 54045 (Oct. 9, 2019).
8 Based on data from the June 30, 2019, Call
Report and FFIEC 002 Report of Assets and
Liabilities of U.S. Branches and Agencies of Foreign
Banks.
9 44 U.S.C. 3501–3521.
section 311 of the Dodd-Frank Act,2 the
powers, duties, and functions formerly
performed by the OTS were divided
among the FDIC for State savings
associations, the Office of the
Comptroller of the Currency (‘‘OCC’’) for
Federal savings associations, and the
Board of Governors of the Federal
Reserve System (‘‘FRB’’) for savings and
loan holding companies. Section 316(b)
of the Dodd-Frank Act 3 provides the
manner of treatment for all orders,
resolutions, determinations, regulations,
and advisory materials that had been
issued, made, prescribed, or allowed to
become effective by the OTS. The
section provides that if such regulatory
issuances were in effect on the day
before the transfer date, they continue in
effect and are enforceable by or against
the appropriate successor agency until
they are modified, terminated, set aside,
or superseded in accordance with
applicable law by such successor
agency, by any court of competent
jurisdiction, or by operation of law.
The Dodd-Frank Act directed the
FDIC and the OCC to consult with one
another and to publish a list of
continued OTS regulations to be
enforced by each respective agency that
would continue to remain in effect until
the appropriate Federal banking agency
modified or removed the regulations in
accordance with applicable law. The list
was published by the FDIC and OCC as
a Joint Notice in the Federal Register on
July 6, 2011,4 and shortly thereafter, the
FDIC published its transferred OTS
regulations as new FDIC regulations in
parts 390 and 391. When it republished
the transferred OTS regulations, the
FDIC noted that its staff would evaluate
the transferred OTS rules and might
later recommend incorporating the
transferred regulations into other FDIC
rules, amending them, or rescinding
them, as appropriate. Further, section
312(c)(1) of the Dodd-Frank Act 5
amended the definition of ‘‘appropriate
Federal banking agency’’ contained in
section 3(q) of the FDI Act,6 to add State
savings associations to the list of entities
for which the FDIC is designated as the
‘‘appropriate Federal banking agency.’’
As a result, when the FDIC acts as the
‘‘appropriate Federal banking agency’’
for State savings associations, as it does
today, it has the authority to issue,
modify, and rescind regulations
involving such associations, as well as
for State nonmember banks and State-
licensed insured branches of foreign
banks.
III. Proposed Rule
On October 2, 2019, the FDIC
published a notice of proposed
rulemaking (NPR) regarding the removal
of part 390, subpart R (former OTS part
562), which addressed regulatory
reporting requirements, regulatory
reports and audits of State savings
associations.7 The former OTS rule was
transferred to the FDIC with only
nominal changes. The NPR proposed
removing part 390, subpart R, because,
after careful review and consideration,
the FDIC believed it was largely
unnecessary, redundant or duplicative
given other FDIC regulations that
pertain to regulatory reporting
requirements (12 CFR part 304, 12 CFR
part 363 and its appendices A and B,
and 12 CFR part 364 and its appendix
A), regulatory reports (12 CFR part 304
and 12 CFR part 308), and audits of
insured depository institutions (12 CFR
part 363 and its appendices A and B and
12 CFR part 364 and its appendix A)
that already apply to State savings
associations.
IV. Comments
The FDIC issued the NPR on October
2, 2019, with a 30-day comment period.
On October 9, 2019, the FDIC issued a
supplemental notice of proposed
rulemaking (SNPR) which, among other
things, extended the deadline for
comments on the FDIC’s regulatory
flexibility analysis until November 8,
2019. The FDIC received no comments
on the NPR or the SNPR, and
consequently the final rule is adopted
without change.
V. Explanation of the Final Rule
As discussed in the NPR, 12 CFR part
390, subpart R, is being rescinded, in its
entirety, because it is largely
unnecessary, redundant or duplicative
given the existence of other applicable
FDIC regulations described in Part III
above.
VI. Expected Effects
As explained in Part III of this
Supplementary Information section,
certain OTS regulations transferred to
the FDIC by the Dodd-Frank Act relating
to regulatory reporting requirements,
regulatory reports, and audits of State
savings associations are redundant or
unnecessary in light of other applicable
FDIC regulations. This rule would
eliminate those transferred OTS
regulations.
As of June 30, 2019, the FDIC
supervises 3,424 insured depository
institutions, of which 38 (1.1 percent)
are State savings associations.8 The rule
primarily would affect regulations that
govern State savings associations.
As explained in the NPR, the rule
would remove §§ 390.320, 390.321, and
390.332 of part 390, subpart R, because
these sections are redundant of, or
otherwise unnecessary in light of,
applicable statutes and other FDIC
regulations regarding audits, reporting,
and safety and soundness. As a result,
rescinding and removing these
regulations will not have any
substantive effects on FDIC-supervised
institutions.
VII. Alternatives
The FDIC has considered alternatives
to the final rule but believes that the
amendments represent the most
appropriate option for covered
institutions. As discussed previously,
the Dodd-Frank Act transferred certain
powers, duties, and functions formerly
performed by the OTS to the FDIC. The
FDIC’s Board reissued and redesignated
certain transferred regulations from the
OTS, but noted that it would evaluate
them and might later incorporate them
into other FDIC regulations, amend
them, or rescind them, as appropriate.
The FDIC has evaluated the existing
regulations relating to regulatory
reporting standards and audits of
insured depository institutions,
including 12 CFR part 304; 12 CFR part
308; 12 CFR part 363 and its appendices
A and B; 12 CFR part 364 and its
appendix A; and 12 CFR part 390,
subpart R. The FDIC considered the
status quo alternative of retaining the
current regulations but did not choose
to do so because the underlying
purposes of those regulations are
already accomplished through
substantively similar regulations
regarding regulatory reports, regulatory
reporting requirements, and audits.
Therefore, the FDIC is amending and
streamlining the FDIC’s regulations.
VIII. Regulatory Analysis and
Procedure
A. The Paperwork Reduction Act
In accordance with the requirements
of the Paperwork Reduction Act of 1995
(‘‘PRA’’),9 the FDIC may not conduct or
sponsor, and the respondent is not
VerDate Sep<11>2014 16:38 Jan 17, 2020 Jkt 250001 PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 E:\FR\FM\21JAR1.SGM 21JAR1
jbell on DSKJLSW7X2PROD with RULES
2 12 U.S.C. 5411.
3 12 U.S.C. 5414(b).
4 76 FR 39246 (July 6, 2011).
5 12 U.S.C. 5412(c)(1).
6 12 U.S.C. 1813(q).
7 See 84 FR 52387 (Oct. 2, 2019). The FDIC
published a SNPR in the Federal Register relating
to the FDIC’s regulatory flexibility analysis on
October 9, 2019. See 84 FR 54045 (Oct. 9, 2019).
8 Based on data from the June 30, 2019, Call
Report and FFIEC 002 Report of Assets and
Liabilities of U.S. Branches and Agencies of Foreign
Banks.
9 44 U.S.C. 3501–3521.
section 311 of the Dodd-Frank Act,2 the
powers, duties, and functions formerly
performed by the OTS were divided
among the FDIC for State savings
associations, the Office of the
Comptroller of the Currency (‘‘OCC’’) for
Federal savings associations, and the
Board of Governors of the Federal
Reserve System (‘‘FRB’’) for savings and
loan holding companies. Section 316(b)
of the Dodd-Frank Act 3 provides the
manner of treatment for all orders,
resolutions, determinations, regulations,
and advisory materials that had been
issued, made, prescribed, or allowed to
become effective by the OTS. The
section provides that if such regulatory
issuances were in effect on the day
before the transfer date, they continue in
effect and are enforceable by or against
the appropriate successor agency until
they are modified, terminated, set aside,
or superseded in accordance with
applicable law by such successor
agency, by any court of competent
jurisdiction, or by operation of law.
The Dodd-Frank Act directed the
FDIC and the OCC to consult with one
another and to publish a list of
continued OTS regulations to be
enforced by each respective agency that
would continue to remain in effect until
the appropriate Federal banking agency
modified or removed the regulations in
accordance with applicable law. The list
was published by the FDIC and OCC as
a Joint Notice in the Federal Register on
July 6, 2011,4 and shortly thereafter, the
FDIC published its transferred OTS
regulations as new FDIC regulations in
parts 390 and 391. When it republished
the transferred OTS regulations, the
FDIC noted that its staff would evaluate
the transferred OTS rules and might
later recommend incorporating the
transferred regulations into other FDIC
rules, amending them, or rescinding
them, as appropriate. Further, section
312(c)(1) of the Dodd-Frank Act 5
amended the definition of ‘‘appropriate
Federal banking agency’’ contained in
section 3(q) of the FDI Act,6 to add State
savings associations to the list of entities
for which the FDIC is designated as the
‘‘appropriate Federal banking agency.’’
As a result, when the FDIC acts as the
‘‘appropriate Federal banking agency’’
for State savings associations, as it does
today, it has the authority to issue,
modify, and rescind regulations
involving such associations, as well as
for State nonmember banks and State-
licensed insured branches of foreign
banks.
III. Proposed Rule
On October 2, 2019, the FDIC
published a notice of proposed
rulemaking (NPR) regarding the removal
of part 390, subpart R (former OTS part
562), which addressed regulatory
reporting requirements, regulatory
reports and audits of State savings
associations.7 The former OTS rule was
transferred to the FDIC with only
nominal changes. The NPR proposed
removing part 390, subpart R, because,
after careful review and consideration,
the FDIC believed it was largely
unnecessary, redundant or duplicative
given other FDIC regulations that
pertain to regulatory reporting
requirements (12 CFR part 304, 12 CFR
part 363 and its appendices A and B,
and 12 CFR part 364 and its appendix
A), regulatory reports (12 CFR part 304
and 12 CFR part 308), and audits of
insured depository institutions (12 CFR
part 363 and its appendices A and B and
12 CFR part 364 and its appendix A)
that already apply to State savings
associations.
IV. Comments
The FDIC issued the NPR on October
2, 2019, with a 30-day comment period.
On October 9, 2019, the FDIC issued a
supplemental notice of proposed
rulemaking (SNPR) which, among other
things, extended the deadline for
comments on the FDIC’s regulatory
flexibility analysis until November 8,
2019. The FDIC received no comments
on the NPR or the SNPR, and
consequently the final rule is adopted
without change.
V. Explanation of the Final Rule
As discussed in the NPR, 12 CFR part
390, subpart R, is being rescinded, in its
entirety, because it is largely
unnecessary, redundant or duplicative
given the existence of other applicable
FDIC regulations described in Part III
above.
VI. Expected Effects
As explained in Part III of this
Supplementary Information section,
certain OTS regulations transferred to
the FDIC by the Dodd-Frank Act relating
to regulatory reporting requirements,
regulatory reports, and audits of State
savings associations are redundant or
unnecessary in light of other applicable
FDIC regulations. This rule would
eliminate those transferred OTS
regulations.
As of June 30, 2019, the FDIC
supervises 3,424 insured depository
institutions, of which 38 (1.1 percent)
are State savings associations.8 The rule
primarily would affect regulations that
govern State savings associations.
As explained in the NPR, the rule
would remove §§ 390.320, 390.321, and
390.332 of part 390, subpart R, because
these sections are redundant of, or
otherwise unnecessary in light of,
applicable statutes and other FDIC
regulations regarding audits, reporting,
and safety and soundness. As a result,
rescinding and removing these
regulations will not have any
substantive effects on FDIC-supervised
institutions.
VII. Alternatives
The FDIC has considered alternatives
to the final rule but believes that the
amendments represent the most
appropriate option for covered
institutions. As discussed previously,
the Dodd-Frank Act transferred certain
powers, duties, and functions formerly
performed by the OTS to the FDIC. The
FDIC’s Board reissued and redesignated
certain transferred regulations from the
OTS, but noted that it would evaluate
them and might later incorporate them
into other FDIC regulations, amend
them, or rescind them, as appropriate.
The FDIC has evaluated the existing
regulations relating to regulatory
reporting standards and audits of
insured depository institutions,
including 12 CFR part 304; 12 CFR part
308; 12 CFR part 363 and its appendices
A and B; 12 CFR part 364 and its
appendix A; and 12 CFR part 390,
subpart R. The FDIC considered the
status quo alternative of retaining the
current regulations but did not choose
to do so because the underlying
purposes of those regulations are
already accomplished through
substantively similar regulations
regarding regulatory reports, regulatory
reporting requirements, and audits.
Therefore, the FDIC is amending and
streamlining the FDIC’s regulations.
VIII. Regulatory Analysis and
Procedure
A. The Paperwork Reduction Act
In accordance with the requirements
of the Paperwork Reduction Act of 1995
(‘‘PRA’’),9 the FDIC may not conduct or
sponsor, and the respondent is not
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jbell on DSKJLSW7X2PROD with RULES