98-8605. Expanded Examination Cycle for Certain Small Insured Institutions

[Federal Register Volume 63, Number 63 (Thursday, April 2, 1998)]
[Rules and Regulations]
[Pages 16378-16381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8605]



[[Page 16377]]

_______________________________________________________________________

Part IX

Department of the Treasury
Office of the Comptroller of the Currency



12 CFR Part 4



Federal Reserve System



12 CFR Part 208



Federal Deposit Insurance Corporation



12 CFR Part 337



Department of the Treasury
Office of Thrift Supervision



12 CFR Part 563



_______________________________________________________________________



Expanded Examination Cycle for Certain Small Insured Institutions; 
Final Rule

Federal Register / Vol. 63, No. 63 / Thursday, April 2, 1998 / Rules 
and Regulations

[[Page 16378]]



DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 4

[Docket No. 97-02]
RIN 1557-AB56

FEDERAL RESERVE SYSTEM

12 CFR Part 208

[Regulation H; Docket No. R-0957]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 337

RIN 3064-AB90

DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Part 563

[Docket No. 98-12]
RIN 1550-AB02


Expanded Examination Cycle for Certain Small Insured Institutions

AGENCIES: Board of Governors of the Federal Reserve System, Office of 
the Comptroller of the Currency, Federal Deposit Insurance Corporation, 
and Office of Thrift Supervision.

ACTION: Final rule.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board), 
the Office of the Comptroller of the Currency (OCC), the Federal 
Deposit Insurance Corporation (FDIC), and the Office of Thrift 
Supervision (OTS) (collectively, the Agencies) are adopting as a final 
rule their joint interim rule implementing section 306 of the Riegle 
Community Development and Regulatory Improvement Act of 1994 (CDRI) and 
section 2221 of the Economic Growth and Regulatory Paperwork Reduction 
Act of 1996 (EGRPRA). Together, section 306 of CDRI and section 2221 of 
EGRPRA authorize the Agencies to increase the asset size of certain 
financial institutions that may be examined once in every 18-month 
period, rather than once in every 12-month period, from $100 million to 
a revised limit of $250 million. This final rule makes certain 
institutions that have $250 million or less in assets eligible for the 
18-month examination schedule.

EFFECTIVE DATE: April 2, 1998.

FOR FURTHER INFORMATION CONTACT: OCC: Lawrence W. Morris, National Bank 
Examiner, Examination Process [phone]; Ronald Schneck, Director, 
Special Supervision, [phone]; or Mark Tenhundfeld, Assistant 
Director, Legislative and Regulatory Activities, [phone].
    Board: Molly Wassom, Deputy Associate Director, [phone], or 
William H. Tiernay, Senior Financial Analyst, [phone], Division 
of Banking Supervision and Regulation. For the hearing impaired only, 
Telecommunication Device for the Deaf (TDD), Diane Jenkins (202) 452-
3544.
    FDIC: Mark A. Mellon, Counsel, Regulation and Legislation section 
[phone], Legal Division, or Robert W. Walsh, Manager, Planning 
and Program Development section [phone], Division of 
Supervision, Federal Deposit Insurance Corporation, 550 17th Street, 
N.W., Washington, D.C. 20429.
    OTS: Scott M. Albinson, Special Assistant to the Executive 
Director, Supervision, [phone]; or Ellen J. Sazzman, Counsel 
(Banking and Finance), Regulations and Legislation Division, Office of 
the Chief Counsel, [phone].

SUPPLEMENTARY INFORMATION:

Background

    Section 10(d) of the Federal Deposit Insurance Act (the FDI Act), 
1 which was added by section 111 of the Federal Deposit 
Insurance Corporation Improvement Act of 1991 (FDICIA), 2 
requires that each appropriate Federal banking agency conduct a full-
scope, on-site examination at least once during each 12-month period of 
every insured depository institution that the agency supervises. 
However, section 10(d) permits the Agencies to examine certain small 
insured depository institutions once during every 18-month period. As 
initially established by FDICIA, section 10(d) required an institution 
to have $100 million or less in total assets and its composite 
condition must have been found to be outstanding (rated 1 under the 
Uniform Financial Institutions Rating System (UFIRS)) at its most 
recent examination in order to qualify for an extended exam cycle. In 
addition, a qualifying institution (a) must not have undergone a change 
in control during the previous 12-month period in which a full-scope 
examination otherwise would have been required by section 10 of the FDI 
Act; (b) be well capitalized; and (c) be found by the appropriate 
agency to be well managed.
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    \1\ Section 10(d) of the FDI Act is codified at 12 U.S.C. 
1820(d).
    \2\ Pub. L. 102-242, 105 Stat. 2236.
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    Section 306 of CDRI, which was enacted into law in 
1994,3 made several amendments to section 10(d) that, taken 
together, expand the availability of the 18-month examination cycle to 
a larger number of small institutions. First, section 306 of CDRI 
increased to $250 million the asset size of institutions rated 
outstanding (UFIRS 1) that could be examined on an 18-month cycle. 
Second, section 306 added a provision permitting an 18-month cycle for 
institutions rated satisfactory (UFIRS 2) at their most recent 
examination, provided they did not exceed $100 million in total assets. 
Third, section 306 authorized the Agencies to increase this $100 
million threshold to $175 million beginning on September 23, 1996, if 
the Agencies first determined that the increased amount is consistent 
with the principles of safety and soundness for insured depository 
institutions. Finally, section 306 required that, to qualify for the 
expanded examination cycle, an insured institution must not be subject 
to a formal enforcement proceeding or order. The remaining provisions 
of section 10(d) of the FDI Act were unchanged.
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    \3\ Pub. L. 103-325, 108 Stat. 2160.
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    Section 2221 of EGRPRA 4 further amended section 10(d) 
of the FDI Act. Pursuant to section 2221, the Agencies were authorized 
to increase to $250 million the maximum asset size of UFIRS 2-rated 
institutions eligible for examination on an 18-month cycle. EGRPRA also 
made the expanded examination cycle available to qualified Federal 
branches and agencies of foreign banks. The International Banking Act 
of 1978 (the IBA),5 as amended by the Foreign Bank 
Supervision Enhancement Act of 1991,6 requires an 
examination of each U.S. branch or agency of a foreign bank once during 
each 12-month period. Section 2214 of EGRPRA 7 amended the 
IBA to provide, among other things, that each Federal or State branch 
or agency of a foreign bank will be subject to on-site examination by 
the appropriate Federal or State banking agency as frequently as would 
a national or state bank, respectively. Consequently, U.S. branches or 
agencies of foreign banks are eligible for the 18-month cycle provided 
that they meet the qualifying criteria outlined above.
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    \4\ Pub. L. 104-208, 110 Stat. 3009 (section 2221 is codified at 
12 U.S.C. 1820(d)(10)).
    \5\ Pub. L. 95-369, 92 Stat. 607 (codified at 12 U.S.C. 3101, et 
seq.).
    \6\ Pub. L. 102-242, 105 Stat. 2286, 2291, 2304 (amending, inter 
alia, 12 U.S.C. 3105(c)(1)(C)).
    \7\ Section 2214(a)(3) of EGRPRA is codified at 12 U.S.C. 
3105(c)(1)(C).
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    In 1997, the Federal banking agencies issued a joint rule that was 
immediately

[[Page 16379]]

effective upon the date of publication implementing section 306 of CDRI 
and section 2221 of EGRPRA. See 62 FR 6449 (Feb. 12, 1997). The interim 
rule was published with a request for public comment. As discussed in 
greater detail below, the public comments generally favored adoption of 
the expanded examination cycle rule as set forth in the interim rule. 
Accordingly, the Agencies hereby adopt the interim rule with only minor 
stylistic changes.

Comments Received

    In response to the interim rule request for comment, the Agencies 
received a total of 16 comments, including six from banking 
institutions, six from Federal Reserve Banks, and four from trade 
associations. Most agreed that the expansion of the 18-month 
examination cycle should be applied to UFIRS 1-and 2-rated domestic 
institutions with assets of $250 million or less. Commenters favoring 
the proposed changes agreed that the application of an 18-month cycle 
would reduce regulatory burden on smaller, well run institutions that 
do not pose significant supervisory concerns. Commenters also noted 
that the rule is consistent with the Agencies' respective approaches to 
performance-based regulation and supervision.
    One commenter suggested that a financial institution with a UFIRS 
rating of 1 or 2 should be allowed to elect either a 12-month or an 18-
month exam cycle, and that each examination should cover, among other 
things, compliance issues and an examination of the financial 
institution's fiduciary and data processing operations. In response, 
the Agencies note that the examination cycle adopted in the interim 
rule and finalized by this rulemaking creates the generally applicable 
schedule. The primary regulator will have the option, however, to 
examine an institution as frequently as the regulator deems 
appropriate. The Agencies believe that this approach is an efficient 
and effective use of both financial institution and examiner resources. 
Should a financial institution wish to discuss particular issues with 
its primary regulator at a time other than when an examination is 
ongoing, the financial institution is encouraged to contact its 
regulator for assistance at any time.

Final Rule

    Based upon further deliberations by the Agencies and the comments 
received, the Agencies are adopting the interim rule in final form, 
with only minor stylistic changes. Pursuant to the final rule, a 
domestic national or state financial institution will be eligible for 
an 18-month examination schedule if the institution: (1) has total 
assets of $250 million or less; (2) is well capitalized as defined in 
section 38(b)(1)(A) of the FDI Act (12 U.S.C. 1831o(b)(1)(A)); (3) is 
well managed; (4) received a UFIRS rating of 1 or 2 at its most recent 
examination; (5) is not subject to a formal enforcement proceeding or 
order; and (6) has not undergone a change in control during the 
previous 12-month period.
    The Agencies have determined that increasing the size limitation of 
UFIRS 2-rated institutions that are eligible for an 18-month cycle is 
consistent with the safety and soundness of insured depository 
institutions. A longer examination cycle permits the Agencies to focus 
their resources on those segments of the banking and thrift industry 
that present the most immediate supervisory concern, while 
concomitantly reducing the regulatory burden on smaller, well run 
institutions that do not pose an equivalent level of supervisory 
concern. In lieu of the more frequent annual examinations that would 
otherwise be conducted for these institutions, the agencies rely upon 
off-site monitoring tools to identify potential problems in smaller, 
well managed institutions that present low levels of risk. Moreover, 
neither the statute nor the regulation limits, and the Agencies 
therefore retain, the authority to examine an insured depository 
institution more frequently. The Agencies that supervise state-
chartered insured institutions also recognize that flexibility must be 
made available in the implementation of this regulation to accommodate 
requirements for annual examinations by various states.
    The FDIC, Board, and OCC, which have jurisdiction over U.S. 
branches and agencies of foreign banks, are reviewing the issue of how 
to apply the qualifying criteria to these entities. Upon development of 
a method under which the 18-month examination cycle qualifying criteria 
can be applied to Federal branches and agencies, a separate rule will 
be issued for comment.

Effective Date of Final Rule

    The Agencies have determined that there is good cause to dispense 
with a 30-day delayed effective date pursuant to 5 U.S.C. 553(d)(3). 
The expanded exam cycle was immediately effective upon publication of 
the interim rule in February, 1997. This final rule adopts the interim 
rule without any substantive change. While the Agencies invited 
interested parties to comment on the rule at that time, each agency 
already has implemented the expanded exam cycle, and insured depository 
institutions already have been complying with the new rule for 
approximately a year. Accordingly, depository institutions will not 
require any additional time to adjust their policies or practices in 
order to comply with the rule. Delaying the effective date simply would 
create confusion on the part of the banking industry concerning the 
applicability of the expanded exam cycle during the time between 
publication and some later effective date.
    The Agencies also have determined, for the reasons stated in the 
preceding paragraph, that good cause exists to adopt an effective date 
that is before the first day of the calendar quarter that begins on or 
after the date on which the regulation is published, as would otherwise 
be required by section 302 of the CDRI.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (the Act) (5 U.S.C. 601-612) does 
not apply to a rulemaking where a general notice of proposed rulemaking 
is not required, as is the case with the 18-month examination cycle 
rulemaking. See 5 U.S.C. 603 and 604. Accordingly, the Act's 
requirements relating to an initial and final regulatory flexibility 
analysis are not applicable.
    Even if the Act were to apply, the final rule will not have a 
significant economic impact on a substantial number of small entities. 
The final rule will reduce regulatory burdens on eligible banks and 
thrifts with assets of $250 million or less. In addition, those 
depository institutions that are not eligible for the exemption from 
the statutorily prescribed 12-month examination cycle are not adversely 
affected by the final rule.

Small Business Regulatory Enforcement Fairness Act

    Title II of the Small Business Regulatory Enforcement Fairness Act 
of 1996 (SBREFA) \8\ provides generally for agencies to report rules to 
Congress and the General Accounting Office (GAO) for review. The 
reporting requirement is triggered when a Federal agency issues a final 
rule. The Agencies will file the appropriate reports with Congress and 
the GAO as required by SBREFA. The Office of Management and Budget has 
determined that the uniform rule promulgated by the Agencies does not 
constitute a ``major rule'' as defined by SBREFA.
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    \8\ Pub. L. 104-121.

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[[Page 16380]]

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3506), the Agencies have determined that no collections of information 
pursuant to the Paperwork Reduction Act are contained in this final 
rule.

OCC and OTS Executive Order 12866 Statement

    The OCC and OTS each independently has determined that this final 
rule is not a significant regulatory action under Executive Order 
12866.

OCC and OTS Unfunded Mandates Act of 1995 Statement

    Section 202 of the Unfunded Mandates Reform Act of 1995, Pub. L. 
104-4, 109 Stat. 48 (March 22, 1995) (Unfunded Mandates Act), requires 
that an agency prepare a budgetary impact statement before promulgating 
a rule that includes a Federal mandate that may result in the 
expenditure by state, local, and tribal governments, in the aggregate, 
or by the private sector, of $100 million or more in any one year. If a 
budgetary impact statement is required, section 205 of the Unfunded 
Mandates Act also requires an agency to identify and consider a 
reasonable number of regulatory alternatives before promulgating a 
rule. Because the OCC and OTS have each independently determined that 
this final rule will not result in expenditures by state, local, and 
tribal governments, in the aggregate, or by the private sector, of more 
than $100 million in any one year, the OCC and OTS have not prepared a 
budgetary impact statement or specifically addressed the regulatory 
alternatives considered. As discussed in the preamble, this final rule 
will have the effect of reducing regulatory burden on certain 
institutions.

List of Subjects

12 CFR Part 4

    Banks, banking, Freedom of information, Organization and functions 
(Government agencies), Reporting and recordkeeping requirements.

12 CFR Part 208

    Accounting, Agriculture, Banks, banking, Confidential business 
information, Crime, Currency, Federal Reserve System, Flood insurance, 
Mortgages, Reporting and recordkeeping requirements, Safety and 
soundness, Securities.

12 CFR Part 337

    Banks, banking, Reporting and recordkeeping requirements, 
Securities.

12 CFR Part 563

    Accounting, Advertising, Conflicts of interest, Corporate 
opportunity, Crime, Currency, Investments, Reporting and recordkeeping 
requirements, Savings associations, Securities, Surety bonds.

Office of the Comptroller of the Currency

12 CFR CHAPTER I

Authority and Issuance

    For the reasons set forth in the joint preamble, part 4 of chapter 
I of title 12 of the Code of Federal Regulations is amended as follows:

PART 4--ORGANIZATION AND FUNCTIONS, AVAILABILITY AND RELEASE OF 
INFORMATION, CONTRACTING OUTREACH PROGRAM

    1. The authority citation for part 4 continues to read as follows:

    Authority: 12 U.S.C. 93a. Subpart A also issued under 5 U.S.C. 
552; 12 U.S.C. 481, 1820(d). Subpart B also issued under 5 U.S.C. 
552; E.O. 12600 (3 CFR, 1987 Comp., p. 235). Subpart C also issued 
under 5 U.S.C. 301, 552; 12 U.S.C. 481, 482, 1821(o), 1821(t); 18 
U.S.C. 641, 1905, 1906; 31 U.S.C. 9701. Subpart D also issued under 
12 U.S.C. 1833e.

    2. In Subpart A, Sec. 4.6 is revised to read as follows:


Sec. 4.6  Frequency of examination.

    (a) General. The OCC examines national banks pursuant to authority 
conferred by 12 U.S.C. 481 and the requirements of 12 U.S.C. 1820(d). 
The OCC is required to conduct a full-scope, on-site examination of 
every national bank at least once during each 12-month period.
    (b) 18-month rule for certain small institutions. The OCC may 
conduct a full-scope, on-site examination of a national bank at least 
once during each 18-month period, rather than each 12-month period as 
provided in paragraph (a) of this section, if the following conditions 
are satisfied:
    (1) The bank has total assets of $250 million or less;
    (2) The bank is well capitalized as defined in part 6 of this 
chapter;
    (3) At the most recent examination, the OCC found the bank to be 
well managed;
    (4) At the most recent examination, the OCC assigned the bank a 
composite rating of 1 or 2 under the Uniform Financial Institutions 
Rating System (copies are available at the addresses specified in 
Sec. 4.14);
    (5) The bank currently is not subject to a formal enforcement 
proceeding or order by the FDIC, OCC, or Federal Reserve System; and
    (6) No person acquired control of the bank during the preceding 12-
month period in which a full-scope, on-site examination would have been 
required but for this section.
    (c) Authority to conduct more frequent examinations. This section 
does not limit the authority of the OCC to examine any national bank as 
frequently as the agency deems necessary.

    Dated: February 25, 1998.
Eugene A. Ludwig,
Comptroller of the Currency.

Federal Reserve System

12 CFR CHAPTER II

Authority and Issuance

    For the reasons set forth in the joint preamble, the Board amends 
part 208 of chapter II of title 12 of the Code of Federal Regulations 
as follows:

PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL 
RESERVE SYSTEM (REGULATION H)

    1. The authority citation for part 208 continues to read as 
follows:

    Authority: 12 U.S.C. 24, 36, 92(a), 93(a), 248(a), 248(c), 321-
338a, 371d, 461, 481-486, 601, 611, 1814, 1816, 1818, 1820(d)(9), 
1823(j), 1828(o), 1831, 1831o, 1831p-1, 1831r-1, 1835(a), 1882, 
2901-2907, 3105, 3310,3331-3351, and 3906-3909; 15 U.S.C. 78b, 
781(b), 781(g), 781(i), 78o-4(c)(5), 78q, 78q-1 and 78w; 31 U.S.C. 
5318; 42 U.S.C. 4012a, 4104a, 4104b, 4106 and 4128.

    2. In Subpart A, Sec. 208.26 is revised to read as follows:


Sec. 208.26  Frequency of examination.

    (a) General. The Federal Reserve examines insured member banks 
pursuant to authority conferred by 12 U.S.C. 325 and the requirements 
of 12 U.S.C. 1820(d). The Federal Reserve is required to conduct a 
full-scope, on-site examination of every insured member bank at least 
once during each 12-month period.
    (b) 18-month rule for certain small institutions. The Federal 
Reserve may conduct a full-scope, on-site examination of an insured 
member bank at least once during each 18-month period, rather than each 
12-month period as provided in paragraph (a) of this section, if the 
following conditions are satisfied:
    (1) The bank has total assets of $250 million or less;
    (2) The bank is well capitalized as defined in subpart B of this 
part (Sec. 208.33);
    (3) At the most recent examination conducted by either the Federal 
Reserve

[[Page 16381]]

or applicable State banking agency, the Federal Reserve found the bank 
to be well managed;
    (4) At the most recent examination conducted by either the Federal 
Reserve or applicable State banking agency, the Federal Reserve 
assigned the bank a composite rating of 1 or 2 under the Uniform 
Financial Institutions Rating System (copies are available at the 
address specified in Sec. 216.6 of this chapter);
    (5) The bank currently is not subject to a formal enforcement 
proceeding or order by the FDIC, OCC, or Federal Reserve System; and
    (6) No person acquired control of the bank during the preceding 12-
month period in which a full-scope, on-site examination would have been 
required but for this section.
    (c) Authority to conduct more frequent examinations. This section 
does not limit the authority of the Federal Reserve to examine any 
insured member bank as frequently as the agency deems necessary.

    By order of the Board of Governors of the Federal Reserve 
System, March 27, 1998.

Jennifer J. Johnson,
Deputy Secretary of the Board.

Federal Deposit Insurance Corporation

12 CFR CHAPTER III

Authority and Issuance

    For the reasons set forth in the joint preamble, the Board of 
Directors of the FDIC amends part 337 of chapter III of title 12 of the 
Code of Federal Regulations as follows:

PART 337--UNSAFE AND UNSOUND BANKING PRACTICES

    1. The authority citation for part 337 continues to read as 
follows:

    Authority: 12 U.S.C. 375a(4), 375b, 1816, 1818(a), 1818(b), 
1819, 1820(d)(10), 1821(f), 1828(j)(2), 1831f, 1831f-1.

    2. Section 337.12 is revised to read as follows:


Sec. 337.12  Frequency of examination.

    (a) General. The Federal Deposit Insurance Corporation examines 
insured state nonmember banks pursuant to authority conferred by 
section 10 of the Federal Deposit Insurance Act (12 U.S.C. 1820). The 
FDIC is required to conduct a full-scope, on-site examination of every 
insured state nonmember bank at least once during each 12-month period.
    (b) 18-month rule for certain small institutions. The FDIC may 
conduct a full-scope, on-site examination of an insured state nonmember 
bank at least once during each 18-month period, rather than each 12-
month period as provided in paragraph (a) of this section, if the 
following conditions are satisfied:
    (1) The bank has total assets of $250 million or less;
    (2) The bank is well capitalized as defined in Sec. 325.103(b)(1) 
of this chapter;
    (3) At the most recent FDIC or applicable State banking agency 
examination, the FDIC found the bank to be well managed;
    (4) At the most recent FDIC or applicable State banking agency 
examination, the FDIC assigned the insured state nonmember bank a 
composite rating of 1 or 2 under the Uniform Financial Institutions 
Rating System (copies are available at the addresses specified in 
Sec. 309.4 of this chapter);
    (5) The bank currently is not subject to a formal enforcement 
proceeding or order by the FDIC, OCC, or Federal Reserve System; and
    (6) No person acquired control of the bank during the preceding 12-
month period in which a full-scope, on-site examination would have been 
required but for this section.
    (c) Authority to conduct more frequent examinations. This section 
does not limit the authority of the FDIC to examine any insured state 
nonmember bank as frequently as the agency deems necessary.

    By order of the Board of Directors.

    Dated at Washington, DC, this 24th day of March 1998.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.

Office of Thrift Supervision

12 CFR CHAPTER V

Authority and Issuance

    For the reasons set forth in the joint preamble, the OTS amends 
part 563 of Chapter V of title 12 of the Code of Federal Regulations as 
follows:

PART 563--OPERATIONS

    1. The authority citation for part 563 continues read as follows:

    Authority: 12 U.S.C. 375b, 1462, 1462a, 1463, 1464, 1467a, 1468, 
1817, 1820, 1828, 3806; 42 U.S.C. 4106.

    2. Section 563.171 is revised to read as follows:


Sec. 563.171  Frequency of examination.

    (a) General. The OTS examines savings associations pursuant to 
authority conferred by 12 U.S.C. 1463 and the requirements of 12 U.S.C. 
1820(d). The OTS is required to conduct a full-scope, on-site 
examination of every savings association at least once during each 12-
month period.
    (b) 18-month rule for certain small institutions. The OTS may 
conduct a full-scope, on-site examination of a savings association at 
least once during each 18-month period, rather than each 12-month 
period as provided in paragraph (a) of this section, if the following 
conditions are satisfied:
    (1) The savings association has total assets of $250 million or 
less;
    (2) The savings association is well capitalized as defined in 
Sec. 565.4 of this chapter;
    (3) At its most recent examination, the OTS found the savings 
association to be well managed;
    (4) At its most recent examination, the OTS assigned the savings 
association a composite rating of 1 or 2, as defined in Sec. 516.3(c) 
of this chapter;
    (5) The savings association currently is not subject to a formal 
enforcement proceeding or order; and
    (6) No person acquired control of the savings association during 
the preceding 12-month period in which a full-scope, on-site 
examination would have been required but for this section.
    (c) Authority to conduct more frequent examinations. This section 
does not limit the authority of the OTS to examine any savings 
association as frequently as the agency deems necessary.

    Dated: February 10, 1998.

    By the Office of Thrift Supervision.
Ellen Seidman,
Director.
[FR Doc. 98-8605 Filed 4-1-98; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P; 6720-01-P