Third round in EGRPRA review of federal banking regulations underway

Federal banking agencies on Tuesday launched the third part of a four-part review of their regulations to identify those which are outdated “or otherwise unnecessary.”

The review – by the Federal Deposit Insurance Corp. (FDIC), Federal Reserve Board, and Office of the Comptroller of the Currency (OCC) – is being carried out under requirement of the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) of 1996. The law requires the Federal Financial Institutions Examination Council (FFIEC) and federal bank regulatory agencies to review their regulations at least once every 10 years.

Four Federal Register notices will have been published by the end of this review round. The first two were published in February and August. Together, they covered six categories of regulations: applications and reporting; powers and activities; international operations, consumer protection; directors, officers and employees; and money laundering.

The three categories of regulations targeted in this third round are rules of procedure, safety and soundness, and securities.

“The agencies invite the public to identify outdated, unnecessary, or unduly burdensome regulatory requirements imposed on insured depository institutions and their holding companies in these three categories,” according to a Federal Register notice awaiting publication. The public will have 90 days following that notice to submit comments.

While not included under the EGRPRA review requirement, the National Credit Union Administration (NCUA) also typically participates in similar action. The agency began its process this May, with its review expected to cover 10 categories of regulations. The May round covered two categories of regulations: applications and reporting, and powers and activities. There will be three more notices that will address the remaining eight categories, it said earlier.

Federal Bank Regulatory Agencies Seek Further Comment on Interagency Effort to Reduce Regulatory Burden

Draft Federal Register notice

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