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Part V
Office of Thrift Supervision
Regulatory Burden Reduction Initiatives
OTS is the federal banking agency responsible for the examination, supervision, and
regulation of all federally chartered thrifts and state chartered savings associations.
The OTS reduces regulatory burden on savings associations whenever possible,
consistent with statutory requirements, safety and soundness and consumer
protection.
Outreach and Feedback
OTS continues to solicit guidance and industry opinion on regulatory burden
reduction initiatives. We receive responses from thrift executives during industry
meetings held by the Director and Regional Directors of OTS. In these meetings,
we specifically ask thrift executives for comments on regulations and policy
statements they consider outmoded, duplicative, or confusing. OTS holds focus
group meetings with industry and association representatives to solicit information
on how the industry uses regulations as well as the strengths and weaknesses of the
regulations.
Regulatory Efforts to Reduce Regulatory Burden
OTS continues to supervise the thrift industry through risk-focused, efficient, and
proactive regulation. OTS is moving away from regulations that micromanage thrift
operations toward a more streamlined regulatory structure. OTS also, whenever
possible, tailors regulations to risks posed by particular institutions to provide
additional flexibility and latitude to well-capitalized institutions.
In 1996, after a page-by-page review, we identified several areas that would benefit
from an in-depth, substantive review. We identified regulations that:
• Have a significant impact on thrift operations.
• Are not being developed on an interagency basis.
• Have not been comprehensively reviewed for many years.
The 1996 initiatives, listed at the end of this narrative, represent 105 pages or 25
percent of all OTS regulations. In addition, OTS completed several other initiatives
Part V
Office of Thrift Supervision
Regulatory Burden Reduction Initiatives
OTS is the federal banking agency responsible for the examination, supervision, and
regulation of all federally chartered thrifts and state chartered savings associations.
The OTS reduces regulatory burden on savings associations whenever possible,
consistent with statutory requirements, safety and soundness and consumer
protection.
Outreach and Feedback
OTS continues to solicit guidance and industry opinion on regulatory burden
reduction initiatives. We receive responses from thrift executives during industry
meetings held by the Director and Regional Directors of OTS. In these meetings,
we specifically ask thrift executives for comments on regulations and policy
statements they consider outmoded, duplicative, or confusing. OTS holds focus
group meetings with industry and association representatives to solicit information
on how the industry uses regulations as well as the strengths and weaknesses of the
regulations.
Regulatory Efforts to Reduce Regulatory Burden
OTS continues to supervise the thrift industry through risk-focused, efficient, and
proactive regulation. OTS is moving away from regulations that micromanage thrift
operations toward a more streamlined regulatory structure. OTS also, whenever
possible, tailors regulations to risks posed by particular institutions to provide
additional flexibility and latitude to well-capitalized institutions.
In 1996, after a page-by-page review, we identified several areas that would benefit
from an in-depth, substantive review. We identified regulations that:
• Have a significant impact on thrift operations.
• Are not being developed on an interagency basis.
• Have not been comprehensively reviewed for many years.
The 1996 initiatives, listed at the end of this narrative, represent 105 pages or 25
percent of all OTS regulations. In addition, OTS completed several other initiatives
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not identified in the 1996 report. These regulations represent 120 pages, or 29
percent of all OTS regulations and are also listed at the end of this narrative.
We plan to continue to streamline and modify OTS regulations and policies to
improve efficiency, reduce unnecessary costs, eliminate unwarranted constraints on
credit availability, and remove inconsistent, outmoded and duplicative requirements.
Since September 1994 we eliminated or rewrote a total of 255 pages, or 60 percent
of all OTS regulations.
Plain Language
Since 1996, OTS has used plain language drafting techniques promoted by the Vice
President’s Partnership for Reinventing Government and new guidance in the
Federal Register Document Drafting Handbook. The primary goal of plain language
drafting is to make documents more readily understandable. Plain language drafting
enhances clarity. This decreases industry frustration, inadvertent violations, the
need to seek clarification in correspondence and phone calls, and the amount of time
savings associations must devote to understanding the regulations. Plain language
drafting emphasizes the following techniques:
• Informative headings (often written as a question).
• Non-technical language (including the use of “you” and other pronouns).
• The active voice.
The industry and other regulators have complimented OTS’s use of plain language.
Many of OTS’s regulations are in plain language. In addition, the agency is
rewriting its existing non-regulatory guidance in plain language to comply with the
President’s June 1, 1998, memorandum “Plain Language in Government Writing.”
Non-regulatory Efforts to Reduce Regulatory Burden
Regulatory Handbooks
not identified in the 1996 report. These regulations represent 120 pages, or 29
percent of all OTS regulations and are also listed at the end of this narrative.
We plan to continue to streamline and modify OTS regulations and policies to
improve efficiency, reduce unnecessary costs, eliminate unwarranted constraints on
credit availability, and remove inconsistent, outmoded and duplicative requirements.
Since September 1994 we eliminated or rewrote a total of 255 pages, or 60 percent
of all OTS regulations.
Plain Language
Since 1996, OTS has used plain language drafting techniques promoted by the Vice
President’s Partnership for Reinventing Government and new guidance in the
Federal Register Document Drafting Handbook. The primary goal of plain language
drafting is to make documents more readily understandable. Plain language drafting
enhances clarity. This decreases industry frustration, inadvertent violations, the
need to seek clarification in correspondence and phone calls, and the amount of time
savings associations must devote to understanding the regulations. Plain language
drafting emphasizes the following techniques:
• Informative headings (often written as a question).
• Non-technical language (including the use of “you” and other pronouns).
• The active voice.
The industry and other regulators have complimented OTS’s use of plain language.
Many of OTS’s regulations are in plain language. In addition, the agency is
rewriting its existing non-regulatory guidance in plain language to comply with the
President’s June 1, 1998, memorandum “Plain Language in Government Writing.”
Non-regulatory Efforts to Reduce Regulatory Burden
Regulatory Handbooks