WBK Industry News - Federal Regulatory Developments

OCC Issues Licensing Amendments Final Rule

The OCC issued a final rule focused on eliminating unnecessary licensing requirements for national banks and federal savings associations (FSAs), consistent with safe, sound, and fair operation of the federal banking system.

Among other things, the final rule:

  • Allows national banks and FSAs to use the OCC’s expedited review process to approve certain corporate transactions.
  • Eliminates the bylaw amendment notice requirement for FSAs that adopt the OCC’s model or optional bylaws without change.
  • Eliminates the requirement that a disappearing national bank or FSA consolidating or merging with another OCC-supervised institution provide a notice to the OCC.
  • Provides procedures for granting and revoking citizenship and residency waivers for national bank directors.
  • Allows national banks to request approval for a reduction in capital over more than four quarters.
  • Updates the definition of “troubled condition” for purposes of changes in directors and senior executive officers. Specifically, “an enforcement action (a cease-and-desist order, consent order, or formal written agreement) must require the national bank or FSA to improve its financial condition for it to be considered in “troubled condition” solely as a result of the enforcement action.”
  • Adds the position of chief risk officer to the definition of senior executive officer and requires notice when a bank in troubled condition makes personnel changes to such position.

The final rule is effective on January 11, 2021, except for instruction 15g which became effective on December 11, 2020.