Federal bank regulatory agencies have issued an interim final rule that expands eligibility for an 18-month on-site examination cycle, increasing the total asset threshold from $3 billion to $6 billion for certain supervised institutions.
The change implements provisions of the 21st Century ROAD to Housing Act and applies to community banks that are well managed and well capitalized. By extending the exam cycle from 12 to 18 months for small, non-complex, low-risk institutions, regulators aim to reduce administrative burden, time, and resources spent on examinations.
Eligibility remains conditional: institutions must meet statutory criteria, including strong management and capital ratings. Regulators will continue offsite monitoring between scheduled exams. The interim final rule also makes parallel changes for U.S. branches and agencies of foreign banks.
The rule becomes effective immediately upon publication in the Federal Register, with a 30-day public comment period.
