Agencies Propose Changes in Asset Thresholds for Management Interlock Rules

The Office of the Comptroller of the Currency, the Federal Reserve Board and the FDIC (collectively, the "agencies") proposed increasing the major assets prohibition thresholds for management interlock rules.

The Depository Institution Management Interlocks Act (DIMIA) asset prohibition generally bars a management official of a depository organization with $2.5 billion in total assets from serving simultaneously as a management official of an unaffiliated depository organization with more than $1.5 billion in total assets. Under the proposal, both total assets thresholds would be raised to $10 billion.

Additionally, the agencies proposed three alternative methods for increasing the asset threshold based on:

  • the percentage of the number of banking organizations covered by the major asset prohibition in the fourth quarter of 1996;
  • the asset growth for depository organizations between the fourth quarters of 1996 and 2017; and
  • the inflation from the fourth quarter of 1996 and the fourth quarter of 2017.

Comments must be received by the agencies no later than 60 days after the date of publication of the proposal in the Federal Register.