Federal regulators finalized updates to rules restricting the ability of bank directors and other management officials to serve at more than one depository institution or holding company. As advocated by ICBA, the updates provide relief for community banks that have $10 billion or less in total assets.
Previous management interlock rules prohibit directors at institutions with more than $2.5 billion in total assets from simultaneously serving at an unaffiliated depository organization with more than $1.5 billion in total assets. The new rule raises both thresholds to $10 billion.
During the 2016 Economic Growth and Regulatory Paperwork Reduction Act review, ICBA advocated updating the thresholds to provide regulatory relief for community banks.
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