FDIC OKs interim rule

WASHINGTON – The Federal Deposit Insurance Corp. has approved an interim rule to allow “well-managed community banks and thrifts” with less than $1 billion in assets qualify for the 18-month exam cycle.
The FDIC board of directors met last week and approved the interim rule, which raises the threshold from its previous place of $500 million. The rule follows authority granted by Congress in December.
U.S. Comptroller of Currency Thomas J. Curry met with the FDIC board of directors to discuss the change, announcing he too had approved an identical interim final rule for institutions supervised by his office.
“This is an idea that we at the OCC have been talking about for some time now in the context of the [Economic Growth and Regulatory Paperwork Reduction Act] that we take a periodic look at regulations that are unnecessary and overly burdensome,” Curry said. “The 18-month exam cycle, which has been limited to institutions with less than $500 million in assets, struck me as an area where we could offer meaningful regulatory relief to a large group of community banks and thrifts with very little safety and soundness risk.”

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