Agencies reduce regulatory burden for community banks, increase eligibility for 18-month exam cycle

Agencies reduce regulatory burden for community banks, increase eligibility for 18-month exam cycle

The federal bank regulatory agencies today issued an interim final rule increasing the number of community banks eligible for an 18-month exam cycle. The 21st Official websites use .govA .gov website belongs to an official government organization in the United States. Secure .gov websites use HTTPSA lock (LockLocked padlock icon) or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites. The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system. For release at 4:00 p.m. EDT Share The federal bank regulatory agencies today issued an interim final rule increasing the number of community banks eligible for an 18-month exam cycle.

The 21st Century ROAD to Housing Act increased 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. Extending the exam cycle for these small non-complex firms from 12 months to 18 months appropriately reduces burden, including time and resources spent, for these low-risk institutions. By law, to be eligible for the extended exam cycle, these institutions must meet certain criteria, including that they are considered well managed and well capitalized. The interim final rule incorporates the increase into the agencies' regulations for well-rated institutions. The