OCC finalizes measure to get rid of ‘pointless’ licensing guidelines

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WASHINGTON — The Workplace of the Comptroller of the Forex finalized a measure aimed toward eliminating sure licensing and merger necessities that the company says are outdated.

Among the many core modifications within the closing rule unveiled Monday, extra nationwide banks will be capable to use the OCC’s expedited overview course of to approve sure company transactions. Banks will even be capable to observe sure overview procedures often reserved for state-chartered banks when they’re “not inconsistent with relevant federal statutes,” in line with the rule.

As well as, the ultimate rule permits banks to use to put money into enterprises circuitously topic to OCC supervision and examination, supplied the non-controlling investments “pose minimal danger to the nationwide financial institution’s security and soundness.”

The ultimate rule quantities to “eliminating pointless necessities according to secure, sound, and honest operation of the federal banking system,” the OCC wrote in a press launch. “It’s a part of the OCC’s continuous effort to modernize its guidelines and scale back [unnecessary] regulatory burden.”

In the March proposal, the OCC added more specific standards to determine when the agency can ignore “adverse comments” seeking to halt a bank merger on CRA grounds.

Within the March proposal, the OCC added extra particular requirements to find out when the company can ignore “opposed feedback” searching for to halt a financial institution merger on CRA grounds.

Bloomberg Information

Shortly after the proposal to eliminate outdated requirements was launched in early March, some neighborhood advocates expressed concern that sure modifications proposed throughout the context of the Neighborhood Reinvestment Act may make it more difficult for critics of bank mergers to lift their considerations within the public suggestions course of.

Within the March proposal, the OCC added extra particular requirements to find out when the company can ignore “opposed feedback” searching for to halt a financial institution merger on CRA grounds, notably by introducing the time period “non-substantive” as a standards to ignore public suggestions. If the remark is “a generalized opinion … missing factual or analytical assist,” the OCC wrote, the company wouldn’t contemplate the difficulty raised for any further overview.

Within the closing rule, the OCC defended the brand new standards from critics by citing a number of Supreme Court docket rulings that established the requirements of proof for administrative proceedings.

“Accordingly, the OCC believes that the factors for being ‘non-substantive’ set forth within the modification supplies a transparent customary for when the OCC will contemplate a remark to be non-substantive and supplies commenters with steerage on submitting views on a submitting,” the company wrote within the closing rule.

“Additional, the OCC notes that if a commenter believes that the OCC inadequately thought-about a remark, they might have grounds to problem the OCC’s licensing resolution underneath the [Administrative Procedure Act].”

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