ICBA - Publications - Of Mutual Interest 12/19/11

Of Mutual Interest 12/19/11

Of Mutual Interest

A compilation of Mutual, Thrift and Federal Savings Association news

  Dec. 19, 2011

OCC Supervisory Policy Integration Process

The OCC issued a bulletin that outlines the process that it intends to follow to fully integrate the OTS policy guidance documents into a common set of supervisory policies that applies to both national banks and federal savings associations.

When OCC assumed the responsibility for the ongoing supervision, examination and regulation of federal savings associations, all OTS orders, resolutions, determinations, agreements, regulations, interpretive rules, other interpretations, guidelines, procedures and other advisory materials that were in effect before the transfer date continue. Additionally, former OTS policies and guidance remain applicable to federal savings associations until rescinded, superseded, or revised.

The OCC is embarking on a two-phase comprehensive rulemaking project to integrate, when possible, former OTS rules with OCC rules applicable to national banks. Phase I involves rescinding a number of documents including OTS documents that:

  • Transmitted or summarized rules, interagency guidance, or certain Examination Handbook sections;
  • Are no longer useful because of the elimination of the OTS or passage of time; and/or
  • Duplicate existing OCC guidance.

Phase II focuses on guidance that requires further review, substantive revision, or combination or is considered unique to federal savings associations.

Click here to read more on OCC’s supervisory policy integration process.

OCC’s 2012 Fee Structure

The OCC issued a bulletin to inform all federal savings associations, national banks and others of fees charged by the OCC for 2012. Information regarding the fee structure includes the following information. The 2012 assessments are due March 31 and Sept. 30 based on call and thrift financial report information as of Dec. 31 and June 30, respectively. All federal savings associations are required to submit call reports effective March 31. The marginal rates of the OCC’s general assessment schedule continue to be indexed to reflect inflation.

The OCC will calculate the assessment fee due and draft the fee amount on March 31 and Sept. 30. The OCC will base a federal savings association’s assessment for this cycle on either the OCC’s assessment regulation or the former OTS assessment structure, whichever yields the lower assessment for that savings association. After March 2012, all federal savings associations will be assessed using the OCC’s assessment structure.

The OCC assessment schedule continues to include a surcharge for banks and federal savings associations that require increased supervisory resources. The surcharge will be applied to all components of an institution’s assessment, including book assets.

The OCC will continue to reduce the assessment of nonlead federal savings associations by 12 percent. A nonlead institution for this purpose is a federal savings association, national bank, or federal branch or agency that is not the largest based on total assets, controlled by a company owning two or more federal savings associations, national banks, or federal branches or agencies.

Click here for more information on the OCC Year 2012 Fee Structure.

FDIC Issues NPR on the Use of Credit Ratings

The Federal Deposit Insurance Act prohibits federal and state savings associations from acquiring or retaining a corporate debt security that is not “investment grade.” The law defines “investment grade” as any security that is rated in one of the four highest rating categories by at least one nationally recognized statistical rating organization.

The Dodd-Frank Act mandates the banking agencies to remove references to NRSRO credit ratings in their regulations. Accordingly, the FDIC last week issued a notice of proposed rule and guidance that would require state savings associations to use their own due diligence to determine, prior to acquiring a corporate debt security, whether the issuer “has adequate capacity to meet all financial commitments under the security for the projected life of the investment.” The FDIC rule is very similar to a recent proposal by the OCC that would apply to investments made by federal banks and thrifts. ICBA plans to comment on both proposals and express community bank concerns with regulations that require extensive due diligence prior to acquiring investment grade securities.

ICBA Mutual Bank Council

The Mutual Bank Council, which was established by ICBA, provides a forum to discuss and review issues effecting mutual member institutions and increases mutual institution awareness and interest. The council members represent ICBA mutual member institutions and meet periodically to discuss several issues regarding mutual institutions.

The council:

  • Monitors regulatory and statutory initiatives concerning mutual institutions to include charter, governance and capital issues;
  • Reviews federal and state legislative and regulatory issues that have specific impact on mutual member institutions and works with affiliated state associations to establish appropriate positions;
  • Works with other ICBA councils and committees to assist ICBA in developing positions that will benefit mutual member institutions;
  • Participates in legislative and regulatory initiatives effecting mutual member institutions; and
  • Maintains an outreach program for ICBA to promote its mutual advocacy.

If there are issues regarding mutual institutions you would like the ICBA Mutual Bank Council to address during their next meeting, please email Lilly.Thomas@icba.org or ICBA Mutual Bank Council Chairman Wayne Cottle at wcottle@deanbank.com.

You are receiving this e-mail because your bank is an ICBA member or eligible to become a member. To change your e-mail address, please go here. If you wish not to receive Of Mutual Interest e-mails please opt-out here. If you prefer not to receive any future e-mails from ICBA, please unsubscribe here. View our Privacy Policy.

ICBA 1615 L Street NW #900 Washington, DC 20036 (202) 659-8111 info@icba.org