Public Information:
Frequently Asked Questions About the Assessment Process
The following are examples of questions frequently asked by banking industry personnel. The corresponding answers will hopefully clarify issues with respect to the assessment process.
How often do banks pay the assessment, when is it due, and who is subject to the
assessment?
The Comptroller of the Currency's (OCC) assessment on national banks is paid semi-annually. Payments are due on March 31 and September 30 of each year. An assessment is based on an institution's total assets and other information as reported in the call reports as of December 31 and June 30. The assessment due March 31 covers the period January 1 through June 30; and the assessment due September 30 covers the period July 1 through December 31.
National banks that depart the national banking system on December 31 or June 30 will not be subject to the semi-annual assessment. Institutions must leave the national banking system prior to the close of business on the call report date to avoid paying the full semi-annual assessment.
How is the assessment calculated? How does the OCC notify the institutions that
it supervises of the current fee structure?
A bank's assessment is calculated based on a fee schedule that is published at least annually. The Notice of Comptroller of the Currency Fees is made available to the public at least 30 days prior to becoming effective. The fee schedule is typically published (mailed to each national bank and made available on the OCC's Web site) in December and is effective on January 1. It addresses all aspects of the OCC's assessment and also includes a complete list of the OCC's licensing fees.
There are three types of assessments that banks are responsible for: the general assessment that applies to all institutions; the independent trust bank fee; and the independent credit card bank fee. The independent trust bank fee and independent credit card bank fee apply to only certain institutions. Trust banks that are not affiliated with a full-service national bank are subject to the independent trust bank fee. Similarly, credit card banks that are not affiliated with a full-service national bank are subject to the independent credit card bank fee.
A bank's assessment may be adjusted if it is considered a problem bank, or if it is a nonlead bank controlled by a company owning two or more national banks.
A problem bank is an institution that is rated a 3, 4, or 5 under the uniform financial institution rating system (UFIRS) or the risk management, operational controls, compliance and asset quality (ROCA) rating system as of the relevant call date (i.e., December 31 or June 30). A surcharge is applied to a problem institution's assessment to cover the additional cost of supervising that institution. The surcharge is 50 percent for a 3-rated institution and 100 percent for a 4- or 5-rated institution.
A nonlead national bank is entitled to reduce its assessment by 12 percent. A nonlead bank is a national bank that is not the largest national bank, based on total assets, controlled by a company owning two or more national banks. All nonlead banks within that controlling company are entitled to the discount. The 12 percent discount does not apply to the independent trust bank fee or the independent credit card bank fee.
Are national banks billed for their assessment?
The OCC computes the assessment amount using the current fee schedule contained in the Notice of Fees and notifies the institution via email of the amount and the date that the payment will be drafted from their account. This process is based on revisions to the assessment regulations recently adopted by the OCC (see 71 Federal Register 42017 dated July 25, 2006).
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Assessments are due March 31 and September 30, based on call report information as of December 31 and June 30 respectively. The assessments cover the six-month period beginning on January 1 and July 1 respectively.
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Banks are no longer required to calculate their assessment and call in the amount to be debited from their account. The OCC will calculate the assessment due and draft the amount due on March 31 and September 30. The OCC will provide a minimum of seven business days notice of the amount to be drafted from an institution's account. The institution is responsible for ensuring that the account is properly funded on the due dates.
Is there assessment information available on the OCC's Web site?
Yes. For more detailed information concerning the OCC assessment, visit the
links below.
Notice of Comptroller of the Currency Fees - a
copy of the current assessment fee schedule.
12 CFR 8 - the OCC's current assessment policy as published in
the Code of Federal Regulations.
Assessment Account Designation Form - form used to provide assessment bank account and contact information.
Independent Credit Card Bank receivables
attributable form - a form used by independent credit
card banks to report their off-balance sheet receivables.
Licensing Fees - a copy of the
current licensing fee schedule.
For additional information, please contact the Revenue Accounting staff at the numbers indicated below:
Bank Assessment Customer Service - (202) 874-5150
Colette Baylson - (202) 874-4403
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