Federal Deposit Insurance Corporation
Federal Reserve Board of Governors
Joint Release Office of the Comptroller of the Currency
For immediate release February 19, 2016
Federal Banking Agencies Expand Number of Banks and Savings Associations
Qualifying for 18-Month Examination Cycle
WASHINGTON—Federal banking agencies today increased the number of small banks and
savings associations eligible for an 18-month examination cycle rather than a 12-month cycle. The
changes are intended to reduce regulatory compliance costs for smaller institutions, while still
maintaining safety and soundness protections.
Under the interim final rules, qualifying well-capitalized and well-managed banks and savings
associations with less than $1 billion in total assets may now be eligible for an 18-month
examination cycle. Previously, firms with less than $500 million in total assets could be eligible for
the extended examination cycle. The examination cycle changes may also apply to qualifying well-
capitalized and well-managed U.S. branches and agencies of foreign banks with less than $1 billion
in total assets.
Regulators consider institutions to be well-capitalized and well-managed if they have a composite
rating of 1 or 2—the top ratings in the five-point scale indicating the safety and soundness of a bank
or savings association. The changes were implemented by the Federal Reserve Board, the Federal
Deposit Insurance Corporation, and the Office of the Comptroller Currency.
The rules increase the number of institutions that may qualify for an 18-month examination cycle
by approximately 617, to nearly 5,000 banks and savings associations. In addition, the rules
increase the number of U.S. branches and agencies of foreign banks that may qualify for an 18-
month examination cycle by 26 branches and agencies, to a total of 89.
The agencies acted following passage of the Fixing America’s Surface Transportation Act by
Congress in late 2015. Comments will be accepted for 60 days from publication in the Federal
Register.
# # #
(FDIC: PR-11-2016)
Media Contacts:
Federal Reserve Board Eric Kollig 202-452-2955
FDIC David Barr 202-898-6992
OCC William Grassano 202-649-6870
Related Link
Interim Final Rule and Request for Comment
Federal Reserve Board of Governors
Joint Release Office of the Comptroller of the Currency
For immediate release February 19, 2016
Federal Banking Agencies Expand Number of Banks and Savings Associations
Qualifying for 18-Month Examination Cycle
WASHINGTON—Federal banking agencies today increased the number of small banks and
savings associations eligible for an 18-month examination cycle rather than a 12-month cycle. The
changes are intended to reduce regulatory compliance costs for smaller institutions, while still
maintaining safety and soundness protections.
Under the interim final rules, qualifying well-capitalized and well-managed banks and savings
associations with less than $1 billion in total assets may now be eligible for an 18-month
examination cycle. Previously, firms with less than $500 million in total assets could be eligible for
the extended examination cycle. The examination cycle changes may also apply to qualifying well-
capitalized and well-managed U.S. branches and agencies of foreign banks with less than $1 billion
in total assets.
Regulators consider institutions to be well-capitalized and well-managed if they have a composite
rating of 1 or 2—the top ratings in the five-point scale indicating the safety and soundness of a bank
or savings association. The changes were implemented by the Federal Reserve Board, the Federal
Deposit Insurance Corporation, and the Office of the Comptroller Currency.
The rules increase the number of institutions that may qualify for an 18-month examination cycle
by approximately 617, to nearly 5,000 banks and savings associations. In addition, the rules
increase the number of U.S. branches and agencies of foreign banks that may qualify for an 18-
month examination cycle by 26 branches and agencies, to a total of 89.
The agencies acted following passage of the Fixing America’s Surface Transportation Act by
Congress in late 2015. Comments will be accepted for 60 days from publication in the Federal
Register.
# # #
(FDIC: PR-11-2016)
Media Contacts:
Federal Reserve Board Eric Kollig 202-452-2955
FDIC David Barr 202-898-6992
OCC William Grassano 202-649-6870
Related Link
Interim Final Rule and Request for Comment
1
DEPARTMENT OF TREASURY
Office of the Comptroller of the Currency
12 CFR Part 4
[Docket ID OCC-2016-0001]
RIN 1557-AE01
FEDERAL RESERVE SYSTEM
12 CFR Parts 208 and 211
RIN xxxx-xxxx
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Parts 337, 347, and 390
RIN 3064-AE42
Expanded Examination Cycle for Certain Small Insured Depository Institutions and U.S.
Branches and Agencies of Foreign Banks
AGENCIES: Office of the Comptroller of the Currency (OCC); Board of Governors of the
Federal Reserve System (Board); and Federal Deposit Insurance Corporation (FDIC).
ACTION: Joint interim final rules and request for comments.
SUMMARY: The OCC, Board, and FDIC (collectively, the agencies) are jointly issuing and
requesting public comment on interim final rules to implement section 83001 of the Fixing
America’s Surface Transportation Act (FAST Act), which was enacted on December 4, 2015.
Section 83001 of the FAST Act 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 interim final rules generally would allow well capitalized and well managed institutions with
less than $1 billion in total assets to benefit from the extended 18-month examination schedule.
In addition, the interim final rules make parallel changes to the agencies’ regulations governing
the on-site examination cycle for U.S. branches and agencies of foreign banks, consistent with
the International Banking Act of 1978. Finally, the FDIC is integrating its regulations regarding
DEPARTMENT OF TREASURY
Office of the Comptroller of the Currency
12 CFR Part 4
[Docket ID OCC-2016-0001]
RIN 1557-AE01
FEDERAL RESERVE SYSTEM
12 CFR Parts 208 and 211
RIN xxxx-xxxx
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Parts 337, 347, and 390
RIN 3064-AE42
Expanded Examination Cycle for Certain Small Insured Depository Institutions and U.S.
Branches and Agencies of Foreign Banks
AGENCIES: Office of the Comptroller of the Currency (OCC); Board of Governors of the
Federal Reserve System (Board); and Federal Deposit Insurance Corporation (FDIC).
ACTION: Joint interim final rules and request for comments.
SUMMARY: The OCC, Board, and FDIC (collectively, the agencies) are jointly issuing and
requesting public comment on interim final rules to implement section 83001 of the Fixing
America’s Surface Transportation Act (FAST Act), which was enacted on December 4, 2015.
Section 83001 of the FAST Act 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 interim final rules generally would allow well capitalized and well managed institutions with
less than $1 billion in total assets to benefit from the extended 18-month examination schedule.
In addition, the interim final rules make parallel changes to the agencies’ regulations governing
the on-site examination cycle for U.S. branches and agencies of foreign banks, consistent with
the International Banking Act of 1978. Finally, the FDIC is integrating its regulations regarding