Bank Regulators Expand 18-Month Exam Cycle To Banks With Up To $6B in Assets
By CU Today Staff —
WASHINGTON—Federal banking regulators have issued an interim final rule doubling the asset threshold for certain community banks to qualify for an 18-month examination cycle, increasing it from $3 billion to $6 billion.
The change implements provisions of the 21st Century ROAD to Housing Act and applies to well-rated, well-managed and well-capitalized institutions with relatively low-risk profiles. Regulators said extending examinations from every 12 months to every 18 months should reduce compliance burden and the time and resources smaller institutions devote to on-site exams, while agencies will continue off-site monitoring between examinations.
The rule also makes corresponding changes for U.S. branches and agencies of foreign banks. It will take effect immediately upon publication in the Federal Register, with comments accepted for 30 days.
Originally reported by CU Today.