| Subject: |
Revisions to 12 CFR 4 |
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| Description:
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18-Month Examination Cycle: Final Rule |
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Date: October 16, 2007 |
| TO: |
Chief Executive Officers of All National Banks, Federal Branches and Agencies, Department and Division Heads, and All Examining Personnel
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On September 25, 2007, the Office of the Comptroller of the Currency (OCC) published in the Federal Register the attached final rule amending 12 CFR 4, which governs the frequency of examination of national banks. The final rule adopts without change an interim rule, published on April 10, 2007, that amended 12 CFR 4 to extend the 18-month examination cycle to qualified national banks that are well managed, have composite CAMELS ratings of 1 or 2, and total assets of less than $500 million. The interim rule made parallel changes in part 4 for federal branches and agencies. In addition to implementing these laws, the interim rule revised the “well managed” requirement to provide that a bank is well managed, for purposes of the extended examination cycle, if it has received a rating of 1 or 2 for management at its most recent examination.
The OCC issued the interim rule jointly with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision (collectively, the agencies). The agencies are issuing substantively identical final rules that adopt the interim rules without revision. The final rules became effective upon publication.
For more information, please contact Fred Finke, Mid-size/Community Bank Supervision, at (202) 874-4468; Patricia Roberts, Operational Risk Policy Analyst, at (202) 874-5637; Mitchell Plave, Counsel, Legislative and Regulatory Activities at (202) 874-5090; or Stuart E. Feldstein, Assistant Director, Legislative and Regulatory Activities, at (202) 874-5090.
/signed/
Julie L. Williams
First Senior Deputy Comptroller and Chief Counsel
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Attachment: Final Rule
[http://www.occ.treas.gov/fr/fedregister/72fr54347.pdf]
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