OCC 2001-32
OCC Bulletin

Subject:     Assessment of Fees: Independent Credit 
             Card Banks; Lower-Rated Institutions
Description: Final Rule

Date:        July 5, 2001

TO:  Chief Executive Officers of All National Banks, 
     Federal Branches and Agencies, Department and
     Division Heads, and All Examining Personnel

The attached final rule was published in the Federal 
Register on June 1, 2001.  The effective date of the rule 
is July 1, 2001.

The final rule amends the formula the Office of the 
Comptroller of the Currency (OCC) uses to assess 
independent credit card banks.  Under the rule, a 
national bank will be deemed an "independent credit card 
bank" if it engages primarily in credit card operations 
and is not affiliated with a full-service national bank.  
The OCC will continue to assess independent credit card 
banks based on balance sheet assets.  In addition, 
independent credit card banks will pay an assessment 
component based on the receivables attributable to credit 
card accounts owned by banks.  The independent credit 
card bank assessment component for the July 1, 2001, 
through December 31, 2001, period is contained in the 
Amended Year 2001 Fee Schedule, OCC Bulletin 2001-27.  
This rule reflects the fact that many independent credit 
card banks securitize or sell receivables, thereby 
removing those assets from the banks' books. 

The rule also raises the surcharge for national banks and
federal branches and federal agencies with composite 
Uniform Financial Institutions Rating System (UFIRS) or 
Risk Management, Operational Controls, Compliance, and 
Asset Quality (ROCA) ratings of 3, 4, or 5.  The rule 
differentiates banks with UFIRS or ROCA ratings of 3 from
those with ratings of 4 or 5, based on the comparative 
supervisory attention these institutions warrant.  Banks 
with composite UFIRS or ROCA ratings of 3 will be 
assessed a surcharge of 50 percent; banks with composite 
ratings of 4 or 5 will be assessed a 100 percent 
surcharge.  The OCC has limited the amount of the 
surcharge this assessment cycle; lower-rated institutions 
will pay a surcharge on only the first $20 billion in 
book assets.  The increase in the surcharge reflects the 
OCC's experience over time, which shows that lower-rated 
institutions demand considerable supervisory resources. 

For further information, contact Mitchell E. Plave, 
counsel, Legislative and Regulatory Activities Division, 
(202) 874-5090.


_________________________________
Julie L. Williams
First Senior Deputy Comptroller and Chief Counsel