The FDIC recently issued three final rules, each effective February 20, 2020, which primarily rescind and remove certain regulations transferred from the OTS to the FDIC in 2011, in connection with the implementation of the Dodd-Frank Act. The FDIC explained that the purpose of the changes generally was to simplify its regulations and promote parity between State savings associations and State nonmember banks.
The FDIC removed certain former OTS regulations regarding the operations of State saving associations because it deemed the regulations to be largely unnecessary, redundant, or duplicative of existing regulations or safety and soundness considerations. Furthermore, the agency expanded the scope of several of its regulations generally applicable to State nonmember banks to make them applicable to State savings associations as well.
The FDIC removed former OTS regulations regarding regulatory reporting requirements, regulatory reports, and audits of State savings associations, explaining that other FDIC regulations pertaining to these issues already applied to State savings associations. Similarly, the FDIC removed former OTS regulations regarding accounting requirements applicable to State savings associations because, although the applicable disclosures were more detailed, existing disclosure requirements were substantially similar to otherwise applicable financial statement requirements.
No comments were received for any of the three related notices of proposal rulemaking.