| Subject: |
Revisions to 12 CFR 4 |
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| Description:
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18-Month Examination Cycle |
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Date: May 10, 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 April 10, 2007, the OCC published in the Federal Register the attached interim rule amending 12 CFR 4, which governs the frequency of examination of national banks. The interim rule extends the 18-month examination cycle to qualified, well-managed banks with less than $500 million in total assets. At present, the 18-month cycle is available only for banks with less than $250 million in assets. The interim rule makes parallel changes in part 4 for examination of federal branches and agencies and amends part 4 to describe a “well managed” bank as one that received a 1 or 2 CAMELS rating for management at its most recent examination. The interim rule became effective upon publication. The OCC invites public comment on the interim rule.
The interim rule implements section 605 of the Financial Services Regulatory Relief Act of 2006 and related legislation, which raised the $250 million ceiling for 18-month examination to $500 million for qualified, well-managed banks. 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’ interim rules are substantively identical.
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 Division 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: | 72 FR 17798 |
| [http://www.occ.treas.gov/fr/fedregister/72fr17798.pdf] |
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