The Division of Banks has completed revisions to a number of regulatory bulletins applicable to state-chartered banks, including those related to fair lending and Community Reinvestment Act (“CRA”) assessments, insider transactions, investment policy requirements, deposit return item fees and branch office notice and application procedures. The revised regulatory bulletins released on March 29 represent the third phase of the Division’s comprehensive review of all bank and credit union regulatory bulletins and regulations to reduce regulatory burden and compliance redundancy by streamlining, updating or repealing requirements. For example, Regulatory Bulletin 2.1-102, Insider Transactions, has been revised to clarify that the threshold allowances for insider contracts or services refer to the annual aggregate amount of related insider contracts, outstanding extension(s) of credit, commissions, fees and or any other related compensation that meets or exceeds the minimum thresholds, which vary depending on the asset size of the institution. Regulatory Bulletin 2.2-101, Investment Policy Minimum Requirements, has been repealed in its entirety, though the Division cautions that, despite the repeal of this bulletin, all banks and credit unions must adhere to other existing guidance applicable to investment policy requirements. Regulatory Bulletin 2.1-104, Branch Office Notice and Application Procedures, was updated to allow filing of notices and applications using electronic media, such as through FDICconnect. The Division also combined its guidance for Fair Lending and CRA assessment criteria into one bulletin, Regulatory Bulletin 1.3-106, Community Reinvestment and Fair Lending Policy, and updated Regulatory Bulleting 2.3-106, Deposit Return Item Fees, to incorporate the Division’s methodology for calculating the fee.
Nutter Notes: In previous rounds of its regulatory review initiative, the Division has issued revisions to its regulatory bulletins related to fair lending examinations, information technology risk management, restrictive lease covenants, CRA ratings, and advertising guidelines for CDs and money market accounts. The Division revised Regulatory Bulletin 1.3-103, Consumer Protection and Fair Lending Examinations, to clarify the Division’s authority to enforce state and federal regulations. Regulatory Bulletin 2.3-102, CRA Ratings Policy, was revised to clarify the applicability of the Division’s guidance to large institutions. Regulatory Bulletin 2.3-103, Alternative CRA Examination Procedures, has been renumbered as Regulatory Bulletin 1.3-105 and updated to incorporate Mortgage Lender Community Investment examinations that are conducted by the Division at certain mortgage lenders. Regulatory Bulletin 2.2-102, Management Information Systems Examinations, has been repealed in its entirety. Certain guidance contained in the prior Regulatory Bulletin 2.2-102 addressing the need for information technology providers to provide a Letter of Assurance acknowledging that their services will be subject to regulation and examination by the Division to the same extent as if the services were being performed by the entity itself on its own premises has been updated and incorporated into Regulatory Bulletin 1.1-101, Examination Policies, which remains under review. Regulatory Bulletin 2.2-103, Exclusive Leases and Other Restrictive Agreements, has been updated to broaden the exemptions from its restrictions. Regulatory Bulletin 2.3-105, Certificate of Deposit and Money Market Account Advertising Guidelines, has been repealed in its entirety.