The OCC will reduce assessment rates on OCC-chartered community banks by 40% starting next year, Acting Comptroller of the Currency Michael Hsu announced. Effective March 2023, the OCC will make a 40% reduction in assessments for OCC-chartered banks’ first $200 million in assets and a 20% reduction for bank assets between $200 million and $20 billion, Hsu said.
Hsu said the assessment reduction—which is designed to level the playing field among community bank charters—will be published in the OCC’s notice of assessment rates in December. The reduction will result in a $41.3 million total savings for OCC-chartered community banks in 2023, the agency said.
The announcement comes as ICBA pushes back against the FDIC’s proposal to raise deposit insurance assessment rates by 2 basis points on all insured institutions. In a recent comment letter, ICBA called on that agency to reconsider its proposal, which would disproportionately affect community banks.