Agencies reduce regulatory burden for community banks, increase eligibility for 18-month exam cycle
The Federal Reserve Board has issued an interim final rule aimed at reducing the regulatory burden for community banks and increasing their eligibility for an 18-month exam cycle. This change, mandated by the 21st Century ROAD to Housing Act, raises the asset threshold for small, well-managed banks to $6 billion, allowing them to qualify for a longer, less frequent examination period.
The extended exam cycle is designed to alleviate the time and resources required by these low-risk institutions, while maintaining stringent oversight through offsite monitoring between scheduled exams. The rule also extends similar provisions to U.S. branches and agencies of foreign banks, ensuring consistent regulatory standards across the board.
This interim final rule will take effect immediately upon publication in the Federal Register, with a 30-day comment period open for public feedback.
Brief written by urgent.news from Federal Reserve Board's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
