Ask Reggi Your Question Now
Can you summarize 12 CFR Part 308, Subpart R?
RULES OF PRACTICE AND PROCEDURE > Submission and Review of Safety and Soundness Compliance Plans and Issuance of Orders To Correct Safety and Soundness Deficiencies
Short Summary
This document governs the submission and review of safety and soundness compliance plans and the issuance of orders to correct safety and soundness deficiencies. It applies to insured state nonmember banks, state-licensed insured branches of foreign banks subject to section 39 of the Federal Deposit Insurance Act, and state savings associations. The document specifies that a bank or state savings association must file a written safety and soundness compliance plan with the FDIC within 30 days of receiving a request, unless a different filing period is specified by the FDIC. The compliance plan should include a description of the steps the bank or state savings association will take to correct the deficiency and the timeline for implementing those steps. The FDIC is required to review the compliance plan within 30 days and provide written notice of approval or request additional information. Failure to submit an acceptable plan or implement a compliance plan may result in supervisory actions by the FDIC. The document also defines extraordinary growth and outlines the actions the FDIC may be required to take in certain circumstances. A bank or state savings association with an approved compliance plan may amend the plan with prior written notice and approval from the FDIC. The document further explains that the FDIC must provide prior written notice to a bank or state savings association if it intends to issue an order to correct a safety and soundness deficiency or to require certain actions. The notice must include information about the identified deficiencies, proposed restrictions or actions, and the deadline for the bank or state savings association to respond. The bank or state savings association has the opportunity to file a written response within a specified time period, providing explanations, recommended modifications, and any other relevant information. The FDIC may then issue the order as proposed or modified, choose not to issue the order, or request additional information. Failure to respond within the specified time period constitutes consent to the issuance of the order. The document also allows banks and state savings associations to request modification or rescission of an order under certain circumstances. The order remains in place while the request is pending before the FDIC. Judicial remedies and civil money penalties may be imposed for non-compliance or violation of orders issued under section 39. The FDIC may seek enforcement of the order in the appropriate United States district court, and civil money penalties may be assessed against banks, state savings associations, and institution-affiliated parties.
Whom does it apply to?
Insured state nonmember banks, state-licensed insured branches of foreign banks subject to section 39 of the Federal Deposit Insurance Act, and state savings associations
What does it govern?
Submission and review of safety and soundness compliance plans and issuance of orders to correct safety and soundness deficiencies
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Civil money penalties may be assessed against banks, state savings associations, and institution-affiliated parties for non-compliance or violation of orders issued under section 39.
Jurisdiction
U.S. Federal Government