The Office of the Comptroller of the Currency (OCC) instituted a final rule on Dec. 15 for removing what it saw as unnecessary rules which led to an undue regulatory burden on certain monetary institutions.
The ruling was part of the agency’s decennial review of its rules, with the specific aim in this instance being to reduce the regulatory burden on national banks and federal savings associations. All federal financial regulatory agencies have been involved jointly in such evaluations, as part of the Economic Growth and Regulatory Paperwork Reduction Act of 1996. This last, however, applied exclusively to regulations overseen by the OCC.
Among the changes are the removal of notices and approval requirements for certain changes in permanent capital for national banks, the removal of some financial disclosure requirements, a simplification of certain licensing rules for business combinations with federal mutual savings associations, an update of recordkeeping requirements and the permission of electronic filings.
The decision comes after months of commentary from bankers, consumers and community groups, solicited over the course of the review. Additionally, the OCC recommended legislative changes to further remove burdens, including a proposal to provide greater flexibility for federal savings associations to adapt to the evolving times.