OCC Bulletin 2020-63| June 22, 2020

Assessments: Interim Final Rule

To

Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division Heads; All Examining Personnel; and Other Interested Parties

Summary

The Office of the Comptroller of the Currency (OCC) today approved an interim final rule to reduce assessments in response to the national emergency declared in connection with the coronavirus disease (COVID-19). Under the interim final rule, assessments due on September 30, 2020, for national banks, federal savings associations, and federal branches and agencies of foreign banks (collectively, banks) will be calculated using the December 31, 2019, "Consolidated Reports of Condition and Income" (call report) for each institution, rather than the June 30, 2020, call report. This change will result in lower assessments for most OCC-supervised banks. If a bank's assets as reported on the June 30, 2020, call report are lower than on the December 31, 2019, call report, the OCC will calculate the assessment due on September 30, 2020 for the bank using the June 30, 2020, call report.

This one-time reduction in assessments follows the 10 percent reduction in the General Assessment Fee Schedule implemented in the 2019 assessment year and the additional 10 percent reduction in the schedule for 2020.

Note for Community Banks

This interim final rule applies to all OCC-supervised banks.

Highlights

COVID-19 has significantly affected financial institutions, businesses, and consumers. In light of the adverse economic effect of the extraordinary measures that have been taken to limit the public health impact of the COVID-19 pandemic, the OCC is issuing this interim final rule to implement a one-time reduction in assessments for the upcoming semiannual assessment.

  • Under the interim final rule, which amends 12 CFR 8, the OCC will calculate assessments due on September 30, 2020, using call report assets as of December 31, 2019, rather June 30, 2020. The use of the December 31, 2019, call report assets will result in reduced assessments for most banks.
  • If a bank's June 30, 2020, call report assets are lower than the bank's assets as reported on December 31, 2019, the OCC will use the June 30, 2020, call report for calculation of the bank's assessment.
  • The interim final rule will expire after the collection of assessments on September 30, 2020. Thereafter, semiannual assessments will be based on the total assets shown in each institution's most recent call report preceding the payment date.

Further Information

Please contact Margaret Sherry, Principal Deputy Comptroller for Management and Deputy Chief Financial Officer, Financial Management, (202) 649-5658, or Mitchell Plave, Special Counsel, (202) 649-5490, Chief Counsel's Office.

 

Jonathan V. Gould
Senior Deputy Comptroller and Chief Counsel

Related Link