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News Release 2019-54
May 24, 2019
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WASHINGTON — The Office of the Comptroller of the Currency (OCC) has issued a final rule that provides more business flexibility to federal savings associations.
“Federal savings associations need the ability to adapt to the needs of their customers and the marketplace,” Comptroller of the Currency Joseph Otting said. “Today’s rule implementing section 206 of the Economic Growth Act help ensures federal thrifts can remain a vibrant part of their communities, capable of evolving as the needs of their customers and communities change.”
The final rule implements section 206 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The Act requires the OCC to issue regulations to allow federal savings associations with total consolidated assets of $20 billion or less as of December 31, 2017, to elect to operate with national bank powers. Federal savings associations that make the election generally will have the same rights and privileges as a national bank and will be subject to the same duties, restrictions, penalties, liabilities, conditions, and limitations that apply to national banks.
The final rule aims to provide federal savings associations with additional flexibility to adapt to new economic conditions and business environments without having to change their charters.
The final rule becomes effective on July 1, 2019.
William Grassano (202) 649-6870