OCC Finalizes Rule To Streamline Licensing For Community Banks

On March 3, the OCC announced a final rule amending its merger review and licensing frameworks involving national banks and federal savings associations that have no more than $30 billion in total assets, with the goal of simplifying filing requirements for qualifying community banking institutions. These institutions will gain access to shorter review periods, simplified applications and, in some cases, relief from prior approval requirements.

Key elements of the final rule include:

• New "covered community bank" category. A national bank or federal savings association may qualify if it has less than $30 billion in total assets, is well capitalized, and is not subject to a cease-and-desist order, consent order, or formal written agreement requiring improvements to its financial condition.