The federal banking regulators issued an ICBA-supported interim final rule increasing the number of community banks eligible for an 18-month exam cycle.
Details: The interim final rule from the FDIC, OCC, and Federal Reserve:
-
Implements a provision of the 21st Century ROAD to Housing Act increasing the total asset threshold from $3 billion to $6 billion for certain supervised institutions to qualify for an extended 18-month on-site exam cycle.
-
Reduces time and expense burdens for non-complex, low-risk institutions.
-
Requires institutions to be well managed and well capitalized to qualify for the extended exam cycle.
-
Will increase the number of eligible banks by approximately 188 (95 of which are supervised by the FDIC, 50 by the OCC, and 43 by the Fed), bringing the total number of institutions that may qualify to 4,016.
-
Will be effective immediately upon publication in the Federal Register, and comments will be accepted for 30 days.
ICBA Response: In a news release, ICBA expressed strong support for the rule and thanked policymakers for enacting the bipartisan policy under the ICBA-advocated housing law.
ICBA Advocacy:
-
ICBA in July congratulated Congress for the enactment of the bipartisan ROAD to Housing Act, which includes several ICBA-advocated regulatory relief provisions.
-
ICBA and state banking groups pushed for inclusion of the bill’s community bank provisions.
-
The exam-cycle provision was included in ICBA priorities laid out in its open letter to the 119th Congress and in ICBA testimony at the House Financial Services Committee’s first hearing of the 119th Congress.