• EGRPRA Regulatory Review Process Continues
  • March 30, 2015 | Author: Eric J. Dyas
  • Law Firm: Jones Walker LLP - Mobile Office
  • The Economic Growth and Regulatory Paperwork Reduction Act of 1996 ("EGRPRA") requires that the federal banking agencies (the "Agencies") and the Federal Financial Institutions Examination Council review regulations prescribed by them at least once every ten years in order to identify and, where appropriate, eliminate outdated, unnecessary, or unduly burdensome regulatory requirements imposed on insured depository institutions.

    To facilitate the aforementioned review, and as required by EGRPRA, the Agencies have divided their regulations into 12 subject-matter categories and identified regulations within each category. In June of last year the Agencies published the first of what were expected to be four public notices and requests for comments over the course of two years. The comment period for the June notice, which sought comment on three of twelve regulatory categories-Applications and Reporting, Powers and Activities, and International Operations-closed on September 2, 2014.

    Earlier this month, the Agencies continued the EGRPRA review process by publishing the second public notice seeking comment on an additional three regulatory categories-Banking Operations, Capital, and Community Reinvestment Act. In order to facilitate the public's understanding of the request for comment, the notice, announced by the Agencies on February 20 and published in the Federal Register on February 13, contains a chart that sets out by agency the specific subject-matter areas encompassed by the broader regulatory categories.

    The Agencies have identified nine specific issues for consideration by commenters including: the need for statutory change; the need and purpose of the regulations; the effect of the regulations and underlying statutes on competition; reporting, recordkeeping, and disclosure requirements imposed by the regulations; and the burden on community banks and other smaller, insured depository institutions.