OCC announces assessment rate cuts targeting community banks

The OCC will reduce assessment rates on OCC-chartered community banks by 40% starting next year, Acting Comptroller of the Currency Michael Hsu announced.

Assessment Cut: Effective March 2023, the OCC will make a 40% reduction in assessments for OCC-chartered banks’ first $200 million in assets and a 20% reduction for bank assets between $200 million and $20 billion, Hsu said.

Implementation: Hsu said the assessment reduction—which is designed to level the playing field among community bank charters—will be published in the OCC’s notice of assessment rates in December.

Total Savings: The reduction will result in a $41.3 million total savings for OCC-chartered community banks in 2023, the agency said.

FDIC Rate Hike: The announcement comes as ICBA pushes back against the FDIC’s proposal to raise deposit insurance assessment rates by 2 basis points on all insured institutions. In a recent comment letter, ICBA called on that agency to reconsider its proposal, which would disproportionately affect community banks.