FDIC expands number of banks eligible for 18-month exam

As credit unions push the NCUA to return to an 18-month exam cycle, the FDIC has increased the number of small banks and savings associations eligible for an 18-month examination cycle. These institutions will move from the 12-month cycle. The FDIC sees this reduction as a savings to regulatory compliance costs for smaller institutions, while […]

As credit unions push the NCUA to return to an 18-month exam cycle, the FDIC has increased the number of small banks and savings associations eligible for an 18-month examination cycle. These institutions will move from the 12-month cycle. The FDIC sees this reduction as a savings to regulatory compliance costs for smaller institutions, while continuing safety and soundness protections. The League and CUNA will once again ask the NCUA to move back to the 18-month exam cycle in discussions this week at the CUNA GAC.

Under the interim final rules, qualifying well-capitalized and well-managed banks and savings associations with less than $1 billion in total assets may now be eligible for an 18-month examination cycle. The threshold for the rule has been raised by $500 million in total assets. The examination cycle changes could also apply to qualifying well-capitalized and well-managed U.S. branches and agencies of foreign banks with less than $1 billion in total assets.

Last week 30 members of Congress signed a letter asking the NCUA to return to the 18-month exam cycle. Rep. Mike Rogers (R-AL), along with Reps. Bill Posey (R-FL), Dennis Ross (R-FL), and Patrick Murphy (D-FL) signed the letter. An aide to Rep. Ander Crenshaw indicated that he supported the letter even though he didn’t sign it.

The bank changes were implemented by the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller Currency. Read the full news release on the FDIC’s website.

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The League of Southeastern Credit Unions & Affiliates represents 342 credit unions in Alabama, Florida and Georgia, with a combined total of $118.63 billion in assets and more than 10.1 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

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