Fed Board delegates added authorities to Reserve Banks

A final rule bestowing added authorities on the Federal Reserve Banks to approve certain types of applications, notices and requests is slated to take effect Wednesday, according to a Federal Reserve Board notice of final rule scheduled to publish the same day in the Federal Register.

Under the final rule, the Federal Reserve Banks are delegated authority to waive a requirement to file certain applications under the Bank Holding Company Act and the Home Owners’ Loan Act; grant or deny requests for modifying certain commitments; authorize a state member bank to make a public welfare investment in accordance with section 9 of the Federal Reserve Act under certain circumstances; and approve certain requests, applications, and notices relating to international banking operations filed pursuant to the Fed Board’s Regulation K.

Additionally, according to the rule summary, the delegation rules are modified to authorize the Federal Reserve Banks to approve applications and notices concerning mergers and acquisitions that do not exceed the Fed Board’s delegation criteria for competition after including deposits of qualifying credit unions weighted at 50% and deposits of “commercially active” thrift institutions weighted in most cases at 100%. (In a limited number of cases, deposits of all thrifts would be weighted at 100%.) For consistency, the rule also revises or rescinds certain existing delegations to the Federal Reserve Banks, the Secretary of the Board, and the Director of the Division of Supervision and Regulation.

The notice also states that since these revisions relate solely to the Fed’s organization, procedures or practice, “the provisions of the Administrative Procedure Act (APA) regarding notice of proposed rulemaking and opportunity for public participation are not applicable.”

Rules Regarding Delegation of Authority: Delegation of Authority to the Secretary of the Board, Director of the Division of Supervision of Regulation, and Federal Reserve Banks; final rule