Banking Agencies Issue Interim Final Rule on FAST Act Provision

The Office of the Comptroller Currency, the Board of Governors of the Federal Reserve System and the FDIC issued interim final rules to increase the number of small banks and savings associations eligible for an 18-month examination cycle. The banking agencies requested public comment on the interim final rules to implement Section 83001 of the Fixing America's Transportation System ("FAST Act"). Section 83001 permits the agencies to examine qualifying insured depository institutions with less than $1 billion in total assets no less than once during each 18-month period. Prior to enactment of the FAST Act, only qualifying insured depository institutions with less than $500 million in total assets were eligible for an 18-month on-site examination cycle. The changes are intended to reduce regulatory compliance costs for smaller institutions, while still maintaining safety and soundness protections.

Comments on the rules are due 60 days from the date of publication in the Federal Register.

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