By the Division of Banks
Website Summary 2 of Regulatory Bulletin Review Project
The Division Issues its Second Round of Results from its Regulatory Review Initiative
One of the key objectives for the Division of Banks is to complete a comprehensive review of all bank and credit union Regulatory Bulletins and regulations to determine opportunities for the agency to reduce regulatory burden and compliance redundancy by streamlining, updating, or repealing requirements wherever possible. This initiative was a result of the several industry focus groups that the Division of Banks held throughout the Commonwealth of Massachusetts during 2011, and is a component of the Division’s current strategic planning process. The Division believes it is helpful to issue periodic updates of the changes being made to date. Below are brief descriptions of such changes made in this second round, as listed under each major category of the Regulatory Bulletin Manual. As further progress is made, additional updates will be provided.
BANKS, CREDIT UNIONS, AND LICENSEES – CONSUMER PROTECTION
1.3-103 Consumer Protection and Fair Lending Examinations
Minor revisions were made to this Bulletin to clarify the Division’s authority to enforce state and federal regulations.
BANKS AND CREDIT UNIONS – RISK MANAGEMENT
2.2-102 Management Information Systems Examinations
This Bulletin has been repealed in its entirety. However, the language relative to the need for Information Technology providers to provide a Letter of Assurance acknowledging that their services will be subject to regulation and examination by the Division to the same extent as if the services were being performed by the entity itself on its own premises has been updated and incorporated into Regulatory Bulletin 1.1-101 Examination Policies, which currently remains under review.
2.2-103 Exclusive Leases and Other Restrictive Agreements
This Bulletin was updated to broaden the exemptions from its restrictions, to update the Board of Bank Incorporation decision in the Historical Notes section, and to provide other minor edits.
BANKS AND CREDIT UNIONS – CONSUMER PROTECTION
2.3-102 CRA Ratings Policy
This Bulletin was updated for clarification on applicability to large banks and credit unions. Other language was streamlined for more clarity.
2.3-103 Alternative CRA Examination Procedures
This Bulletin was updated to incorporate Mortgage Lender Community Investment examinations that are conducted by the Division at certain mortgage lenders. As it now applies to banks, credit unions, and licensees, this Bulletin has been renumbered as 1.3-105. Other minor edits were made for clarification.
2.3-104 School Bank Program
This Bulletin was updated to replace the application procedures with notice provisions, to eliminate the section relative to student banks, and to incorporate other minor revisions made necessary by the passage of Chapter 461 of the Acts of 2004. Additionally, the name of the Bulletin was updated to Student Bank Programs.
2.3-105 Certificate of Deposit and Money Market Account Advertising Guidelines
This Bulletin has been repealed in its entirety as sufficient and substantial consumer protection is available within state and federal laws governing the advertisement of deposit products, as well as unfair and deceptive and abusive acts and practices in advertising.
CREDIT UNIONS ONLY – RISK MANAGEMENT
4.2-101 Loan Loss Reserve Requirements
This Bulletin has been repealed in its entirety because it is unnecessary given other accounting standards in effect. However, an industry letter to the credit union industry has been issued to clarify that such institutions still need to comply with such accounting standards despite the repeal of this Bulletin.