Regulators Expand Eligibility for Extended On-Site Examination Cycle

The Office of the Comptroller of the Currency, the Federal Reserve Board and the FDIC (collectively, the "agencies") adopted several final rules to increase the asset threshold from $1 billion to $3 billion for insured depository institutions ("IDIs"). The change allows IDIs to be eligible for an 18-month on-site examination cycle.

The rules being adopted have been in place as interim final rules since August 29, 2018. The final rules will become effective 30 days after publication in the Federal Register. As previously covered, IDIs must have an "outstanding" composite rating in order to apply for an extended examination cycle.

The agencies issued the rules to comply with the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018.