[Federal Register Volume 63, Number 88 (Thursday, May 7, 1998)]
[Rules and Regulations]
[Pages 25157-25158]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12059]
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FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Ch. III
Statement of Policy on the Development and Review of Regulations
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Revision of statement of policy.
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SUMMARY: The FDIC is revising its Statement of Policy entitled
``Development and Review of Regulations'' (Policy). The revisions
streamline the Policy and focus it more sharply on the basic principles
that underlie the Board's approach to regulation. The provisions of the
Policy that established internal procedures or merely restated the law
have been deleted. The revisions also expand the scope of the Policy to
include written statements of policy adopted by the FDIC Board of
Directors and revise its title accordingly.
EFFECTIVE DATE: May 7, 1998.
FOR FURTHER INFORMATION CONTACT:
Steven F. Hanft, Assistant Executive Secretary (202/898-3907); or Nancy
Schucker Recchia, Counsel (202/898-8885).
SUPPLEMENTARY INFORMATION: The FDIC is revising its Statement of Policy
entitled ``Development and Review of Regulations.'' The existing Policy
has stated the Board's commitment to basic principles of sound
regulation and established internal administrative procedures for FDIC
staff to follow when developing and reviewing regulations. Pursuant to
section 303(a) of the Riegle Community Development and Regulatory
Improvement Act of 1994 (CDRI), the Policy was reviewed to streamline
it and to remove inconsistencies and outmoded and duplicative
provisions. As a part of this review, the FDIC has given careful
consideration to the continuing need for this Policy and how its
content might be presented to best inform the public with respect to
the FDIC's development and review of regulations and written statements
of policy. The revised Policy's reflects the Board's continuing
commitment to improving the quality of its regulations and policies, to
minimizing regulatory burdens on the public and the banking industry,
and generally to ensuring that its regulations and policies achieve
legislative goals effectively and effectively.
The revised Policy recognizes that the Board carries out its
regulatory function through two separate processes of public notice:
the promulgation of regulations pursuant to the requirements of the
Administrative Procedure Act, and the issuance of less formal written
statements of policy. Like regulations, written statements of policy
may affect the banking industry and the public. Because the Board
believes it is important to inform all interested parties of its
approach to the development of written statements of policy, the scope
of the revised Policy has been augmented to include an explanation of
the principles by which the FDIC develops and reviews written
statements of policy, and the title of the Policy has been revised to
reflect the expanded scope.
The revisions streamline the Policy and focus it more sharply on
the following basic principles that underlie the Board's approach to
regulation:
Burdens imposed on the banking industry should be
minimized.
Regulations should be clearly and understandably written.
The public should have a meaningful opportunity to
participate in the rulemaking process.
Common statutory and supervisory mandates should be
implemented by Federal financial institutions regulator in a uniform
way.
Regulations and statements of policy should be reviewed
periodically.
The revised Policy has been streamlined to remove those provisions
that established internal procedures or merely restated the applicable
provisions of law. As part of the CDRI review, the FDIC gave careful
consideration to the most useful and efficient format for presenting
all of the information relevant to regulation and written policy
statement development and review. It was determined to separate these
fundamental guiding principles from the more technical or procedural
requirements. The guiding principles which the Board believes are
relevant to public understanding of its process are contained in the
revised Policy. The technical and procedural requirements are contained
in a newly developed handbook on Development and Review of FDIC
Regulations and Policy Statements. The handbook provides comprehensive
guidance to FDIC managers and staff involved in developing and
reviewing FDIC regulations and statements of policy and can be revised
easily to reflect changes in statutory requirements and in the FDIC's
organizational arrangements.
Text
The text of the revised statement of policy follows:
[[Page 25158]]
Development and Review of FDIC Regulations and Policies
Statement of Policy
Purpose and Scope. The Federal Deposit Insurance Corporation is
committed to continually improving the quality of its regulations and
policies, to minimizing regulatory burdens on the public and the
banking industry, and generally to ensuring that its regulations and
policies achieve legislative goals effectively and efficiently. The
purpose of this statement of policy (Policy) is to establish basic
principles which guide the FDIC's promulgation and review of
regulations and written statements of policy. The scope of this Policy
is limited to regulations and written statements of policy issued by
the Board of Directors of the FDIC.
Principles For the Development and Review of Regulations and
Statements of Policy. The following principles guide the FDIC in its
development of regulations and written policies:
Burdens imposed on the banking industry and the public
should be minimized. Before issuing a regulation or written statement
of policy the FDIC gives careful consideration to the need for such an
issuance. Frequently a regulation is required by statute.
Alternatively, the FDIC may identify a need for a supervisory tool to
implement its statutory obligations, or to clarify its policy for the
benefit of the banking industry or the public. Once the need for a
regulation or statement of policy is determined, the FDIC seeks to
minimize to the extent practicable the burdens which such issuance
imposes on the banking industry and the public. New reporting and
recordkeeping requirements imposed by a regulation are carefully
analyzed. The effect of the regulation or statement of policy on
competition within the industry is considered. Particular attention is
focused on the impact that a regulation will have on small institutions
and whether there are alternatives to accomplish the FDIC's goal which
would minimize any burden on small institutions. Prior to issuance, the
potential benefits associated with the regulation or statement of
policy are weighed against the potential costs.
Regulations and policies should be clearly and
understandably written. The Board seeks to make its regulations and
statements of policy as clear and as understandable as possible to
those persons who are affected by them. In developing or reviewing
existing regulations and statements of policy, the Board considers the
document's organizational structure as well as the specific language
used; both are important components to achieving a clear and useful
statement.
The public should have a meaningful opportunity to
participate in the rulemaking process. The Board seeks to improve its
regulations and statement of policy during the development phase.
Whether a new regulation is being promulgated or an existing one
revised, the Board gives careful consideration to the implications of
its actions as public policy. Public participation in the rulemaking
process is an opportunity for the Board to hear directly from affected
members of the public with important experience and thoughtful insights
related to the pertinent issues. A person or organization may petition
the Board for the issuance, amendment, or repeal of any regulation or
policy by submitting a written petition to the Executive Secretary of
the FDIC. The petition should include a complete and concise statement
of the petitioner's interest in the subject matter and the reasons why
the petition should be granted.
All rulemaking is carried out in accordance with the APA, by which
the Board provides the public with notices of proposed rulemaking and
opportunities to submit comments on the proposals. The Board will often
seek public comment on proposed statements of policy as well. All
comments and proposed alternatives received during the comment period
are considered prior to the issuance of a final rule or statement of
policy. The Board takes final action on proposed regulations and
policies as promptly as circumstances allow. If a significant period of
time elapses following the publication of a proposed rule or policy
without final action, the Board will consider withdrawing the proposal
or re-publishing it for comment. If the Board decides to reconsider a
proposed regulation or statement of policy that has been withdrawn, it
will begin the rulemaking or policy development process anew.
Common statutory and supervisory requirements should be
implemented by the Federal financial institutions regulators in a
uniform way. The FDIC has many statutory and supervisory requirements
that are common to the Board of Governors of the Federal Reserve
System, the Office of the Comptroller of the Currency, the Office of
Thrift Supervision, and/or the National Credit Union Administration.
The more uniform the Federal financial institutions regulators can be
in their regulations, policies and approaches to supervision, the
easier it will be for the industry and the public to comply with the
regulators' requirements. The FDIC is a member of the Federal Financial
Institutions Examination Council (FFIEC) and works with the other
federal financial institutions regulators through the FFIEC to make
uniform those regulations and policies that implement common statutory
or supervisory policies.
Regulations and statements of policy should be reviewed
periodically. To ensure that the FDIC's regulations and written
statements of policy are current, effective, efficient and continue to
meet the principles set forth in this Policy, the FDIC will
periodically undertake a review of each regulation and statement of
policy. The Executive Secretary of the FDIC will, consistent with
applicable laws and in coordination with other financial institutions
regulators, establish a schedule and procedures for the reviews.
Factors to be considered in determining whether a regulation or written
policy should be revised or eliminated include: the continued need for
the regulation or policy; opportunities to simplify or clarify the
regulation or policy; the need to eliminate duplicative and
inconsistent regulations and policies; and the extent to which
technology, economic conditions, and other factors have changed in the
area affected by the regulation or policy. The result of this review
will be a specific decision for each regulation and statement of policy
to either revise, rescind or retain the issuance in its then-current
form. The principles of regulation and statement of policy development,
as articulated at the beginning of this Policy, will apply to the
periodic reviews as well.
By order of the Board of Directors.
Dated at Washington, D.C. this 28th day of April, 1998.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 98-12059 Filed 5-6-98; 8:45 am]
BILLING CODE 6714-01-M
