FDIC & OCC Reduce Exam Burden
On January 21st, both the OCC and FDIC announced approval of an interim final rule that allows well-managed community banks and thrifts with less than $1 billion in assets to qualify for the 18-month exam cycle. Prior to this change, banks with composite CAMELS ratings of 1 or 2 qualified for this treatment only when their assets were $500 million or below. This revision will result in meaningful regulatory burden reduction for affected institutions and will allow the federal banking agencies to focus supervisory resources on other institutions that pose more significant supervisory concern. It also is consistent with the agencies’ processes under the Economic Growth and Regulatory Paperwork reduction Act (EGRPRA).