OCC Bulletin 2019-46| October 10, 2019

Thresholds Increase for the Major Assets Prohibition of the Depository Institution Management Interlocks Act Rules: Final Rule

To

Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies of Foreign Banks; Department and Division Heads; All Examining Personnel; and Other Interested Parties

Summary

The Office of the Comptroller of the Currency (OCC) published a final rule in the Federal Register on October 10, 2019, that increases the major assets prohibition thresholds for management interlocks in the OCC’s rule implementing the Depository Institution Management Interlocks Act (DIMIA). The final rule was issued jointly with the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (together with the OCC, the agencies).

Note for Community Banks

The final rule reduces the number of national banks and federal savings associations subject to the major assets prohibition in the OCC’s DIMIA rule by increasing both major assets prohibition thresholds from $1.5 billion and $2.5 billion to $10 billion.

Background

Prior to adjustment, the DIMIA major assets prohibition precluded a management official of a depository organization with total assets exceeding $2.5 billion (or any affiliate of such an organization) from serving at the same time as a management official of an unaffiliated depository organization with total assets exceeding $1.5 billion (or any affiliate of such an organization). DIMIA provides that the agencies may adjust, by regulation, the major assets prohibition thresholds to allow for inflation or market changes. To account for changes in the U.S. market for banking services since the current thresholds were established in 1996, the agencies are increasing both thresholds to $10 billion.

Further Information

Please contact Daniel Perez, Senior Attorney, or Christopher Rafferty, Attorney, Chief Counsel’s Office, at (202) 649-5490.

 

Jonathan V. Gould
Senior Deputy Comptroller and Chief Counsel

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