OCC Raises Assessments for Larger Banks
On July 9th, the Office of the Comptroller of the Currency (“OCC”) published a final rule that raises assessments on national banks and federal savings associations (“FSAs”) with total assets over $40 billion. The rule will become effective on August 8, 2014. Under the final rule, the marginal assessment rate for national banks and FSAs with more than $40 billion in assets will increase by 14.5 percent beginning September 30, 2014. The increase in assessments will range from 0.32 percent to 14 percent, depending on the total assets of the institution as reflected on its June 30, 2014, Consolidated Report of Condition and Income. The average increase in assessments for affected banks and FSAs will be 12 percent. The final rule does not increase assessment rates for banks and FSAs with $40 billion or less in total assets. OCC Press Release.
Joint Agency Statement on Tax Allocation
On July 2nd, the OCC, Federal Reserve Board, and Federal Deposit Insurance Corporation (“FDIC”) jointly issued an addendum to the “Interagency Policy Statement on Income Tax Allocation in a Holding Company Structure.” The purpose of the addendum is to ensure that insured depository institutions in a consolidated group maintain appropriate relationships regarding the payment of taxes and treatment of tax refunds. OCC Bulletin 2014-30.
Agencies Issue Host State Loan-to-Deposit Ratios
On July 2nd, the Federal Reserve Board, FDIC, and OCC issued the host state loan-to-deposit ratios that they will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, which prohibits a bank from establishing or acquiring a branch or branches outside of its home state primarily for the purpose of deposit production. Joint Agency Press Release.
Agencies Release Financial Firm Resolution Plans
On July 2nd, the Federal Reserve Board and the FDIC released the public portions of annual resolution plans for 17 financial firms. Each plan describes the company's strategy for rapid and orderly resolution under the U.S. Bankruptcy Code in the event of material financial distress or failure of the company. Joint Agency Press Release.
Agencies Issue HELOC Guidance
On July 1st, federal and state financial institutions regulatory agencies issued guidance to financial institutions regarding home equity lines of credit nearing their "end-of-draw" periods. The guidance describes how financial institutions can effectively manage their potential exposures during this period and the appropriate accounting and reporting procedures. Joint Agency Press Release.
OCC Quarterly Report on Bank Trading and Derivatives Activities
On July 1st, the OCC published its Quarterly Report on Bank Trading and Derivatives Activities. Insured U.S. commercial banks and savings associations reported trading revenue of $6.1 billion in the first quarter of 2014, up $3.2 billion, or 108 percent, from $2.9 billion in the fourth quarter. OCC Press Release.
2014 List of Underserved Communities
On June 30th, the Federal Reserve Board, the FDIC, and the OCC announced the availability of the 2014 list of distressed or underserved nonmetropolitan middle-income geographies, where revitalization or stabilization activities will receive Community Reinvestment Act consideration as "community development." Joint Agency Press Release.
The OCC announced it will host two workshops in Syracuse, New York on August 5-6, 2014 for directors of national community banks and federal savings associations. The Compliance Risk and Risk Assessment workshops are designed exclusively for directors of institutions supervised by the OCC. The compliance risk workshop focuses on major compliance risk and consumer protection regulations, such as the Qualified Mortgage Rule, Bank Secrecy Act, and Community Reinvestment Act, along with key elements of an effective compliance risk management program. The risk assessment workshop discusses the OCC’s approach to risk-based supervision, and best practices to identify, measure, monitor and control risk. The interactive sessions also cover industry hot topics such as credit risk, strategic risk, and the regulatory environment. OCC Press Release.
OCC Mutual Savings Association Advisory Committee
The OCC announced it will host a public meeting of the Mutual Savings Association Advisory Committee on July 23, 2014, in Washington, D.C. OCC Press Release.