WASHINGTON—The Office of the Comptroller of the Currency has finalized a rule designed to streamline licensing requirements for smaller banks, giving qualifying institutions faster and less burdensome approval pathways for certain corporate activities and transactions, including mergers.
The rule applies to national banks and federal savings associations with less than $30 billion in total assets, creating a new category of institutions defined as “covered community banks” or “covered community savings associations.” Those institutions will gain access to all existing expedited or reduced filing procedures under the OCC’s licensing regulations.
Under the final rule, eligible institutions must be well capitalized, have under $30 billion in assets, and not be affiliated with a larger bank above that threshold. They also cannot be operating under enforcement actions such as cease-and-desist orders or formal agreements requiring improvements to financial condition.
The OCC said the change reflects its view that applications from community banks generally present lower supervisory risk and therefore should benefit from simplified regulatory procedures. The agency said the rule is part of a broader effort to tailor regulatory requirements to the size and risk profile of smaller institutions while reducing compliance burdens. The rule will take effect 30 days after publication in the Federal Register.