Markets Wired

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today approved an interim final rule (IFR) that will reduce assessments due to be paid to the OCC on September 30, 2020.

The OCC is providing this relief in response to the impact of the national emergency related to coronavirus (COVID-19).

“Banks have played an important role in the national response to COVID-19,” Acting Comptroller of the Currency Brian P. Brooks said. “As a result, many banks took on significant volumes of additional assets while providing relief to their customers as part of these federal programs. Banks should not be penalized by these efforts to support our national recovery. This interim final rule provides temporary relief against the adverse impact of COVID-19 on our nation’s banks that continue to be critical to our economic strength and recovery.”

Under the IFR, assessments due on September 30, 2020, for national banks, federal savings associations, and federal branches and agencies of foreign banks (collectively, banks) will be calculated using the December 31, 2019, “Consolidated Reports of Condition and Income” (call report) for each institution, rather than the June 30, 2020, call report. This change will result in lower assessments for most OCC-supervised banks. However, if a bank’s assets as reported on the June 30, 2020, call report are lower than on its December 31, 2019, report, the OCC will calculate the assessment due on September 30 for the bank using the June 30 call report. This ensures all banks pay the lower of the two options.

This one-time change in calculating assessments follows the 10-percent reduction in the General Assessment Fee Schedule implemented in the 2019 assessment year and the additional 10-percent reduction in the schedule for 2020.