Federal Regulators Increase Asset Threshold for Community Bank Exam Cycles
The Federal Reserve and other agencies raised the asset threshold for 18-month examination cycles from $3 billion to $6 billion.
By Orion Desk
Federal banking regulators have updated their rules to allow institutions with up to $6 billion in assets to qualify for an 18-month on-site examination cycle. This change follows the 21st Century ROAD to Housing Act and is intended to lower the administrative costs for small, well-capitalized, and low-risk banking organizations.
For those monitoring the financial sector, this regulatory shift impacts small community banks and certain foreign bank branches operating in the United States. While on-site visits become less frequent, the agencies will maintain their existing oversight through off-site monitoring procedures for all eligible institutions.
Originally published by Federal Reserve
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