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OCC: Calendar Year 2018 Fees and Assessments Structure

December 04, 2017 / Source: OCC

OCC BULLETIN 2017-60
Subject: Office of the Comptroller of the Currency Fees and Assessments
Date: December 1, 2017
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

Description: Calendar Year 2018 Fees and Assessments Structure

Summary

This bulletin informs all national banks, federal savings associations, and federal branches and agencies of foreign banks (collectively, banks) of fees and assessments charged by the Office of the Comptroller of the Currency (OCC) for calendar year 2018. The bulletin becomes effective January 1, 2018.

Note for Community Banks

This notice applies to all banks.

Highlights

  • For the 2018 assessment year, there will be no inflation adjustment to assessment rates.

SEMIANNUAL ASSESSMENT

Reference: 12 CFR 8, “Assessment of Fees”

2018 Assessment Schedule

As of January 1, 2018,

  • assessments are due March 31 and September 30, based on call report information as of December 31 and June 30, respectively. The assessments cover the six-month periods beginning January 1 and July 1, respectively. For example, the assessment due March 31 covers the period January 1 through June 30.
  • the marginal rates of the OCC’s general assessment schedule remain unchanged from last year.
  • the OCC sends the assessment invoice, which includes the calculated assessment fee due, and drafts the fee amount on March 31 and September 30. The OCC provides seven business days’ notice of the amount to be drafted from an institution’s designated account. The institution is responsible for ensuring that the account is funded properly on the due dates.
  • the OCC continues to charge interest on all payments received after the due date. The interest rate charged is the U.S. Department of the Treasury’s current value of funds rate published quarterly in the Federal Register.
  • national banks, federal savings associations, and federal branches and agencies of foreign banks that are no longer subject to OCC supervision on or before December 31, 2017, or June 30, 2018, are not subject to the semiannual assessment for the period beginning January 1 or July 1, respectively. Only those institutions leaving the federal banking system before the close of business on those dates avoid paying the semiannual assessment for the period beginning January 1 or July 1, as applicable.

The OCC’s assessment schedule continues to include a surcharge for national banks, federal savings associations, and federal branches and agencies of foreign banks that require increased supervisory resources. The surcharge ensures that fees reflect the increased cost of supervision applying to those national banks, federal savings associations, and federal branches and agencies of foreign banks rated 3, 4, or 5 under the Uniform Financial Institutions Rating System. The surcharge also ensures that fees reflect the increased cost of supervision for these same banks. The surcharge will be determined in tandem with the asset-based assessment on December 31, 2017, and June 30, 2018. Increases or decreases in ratings after December 31, 2017, and June 30, 2018, will be reflected in the subsequent assessment period. The surcharge is to be applied to all components of an institution’s assessment, including book assets, assets under management (for independent trust banks), and receivables attributable (for independent credit card banks). National banks, federal savings associations, and federal branches and agencies of foreign banks subject to the surcharge calculate the surcharge by multiplying the sum of the general assessment (based on the institution’s book assets up to $40 billion) and the independent trust bank assessment or the independent credit card bank assessment by 50 percent for 3-rated institutions and 100 percent for 4- and 5-rated institutions.

The OCC continues to reduce the assessment of nonlead national banks, federal savings associations, and federal branches and agencies of foreign banks by 12 percent. A nonlead institution, for this purpose, is a national bank, federal savings association, or federal branch or agency of a foreign bank that is not the largest national bank, federal savings association, or federal branch or agency of a foreign bank, based on total assets, controlled by a company owning two or more national banks, federal savings associations, or federal branches or agencies of foreign banks. Nonlead national banks, federal savings associations, and federal branches and agencies of foreign banks within any company should multiply their calculated general assessment by 88 percent to recognize the nonlead discount. The 12 percent discount does not apply to the independent trust bank assessment or the independent credit card bank assessment, given that independent trust banks and independent credit card banks, by definition, are not affiliated with full-service national banks, federal savings associations, or federal branches or agencies of foreign banks.

Each national bank, federal savings association, and federal branch and agency of a foreign bank pays the general assessment fee. Independent trust banks pay the general assessment fee and the independent trust bank assessment. Independent credit card banks pay the general assessment fee and the independent credit card bank assessment. Assessments are calculated using the schedules in this bulletin and then adjusted for the nonlead discount or condition surcharge.

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