Federal Deposit Insurance Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-2-2017
January 4, 2011
Examination Cycle
Joint Final Rules on Expanded Examination Cycle for Certain Small Insured Depository Institutions
and U.S. Branches and Agencies of Foreign Banks
Summary: The FDIC and the other federal financial institution regulatory agencies have adopted final rules permitting
insured depository institutions (IDIs) with up to $1 billion in total assets, and that meet certain other criteria, to qualify for
an 18-month on-site examination cycle. These rules allow the agencies to better focus supervisory resources on IDIs
that present capital, managerial, or other issues of supervisory concern while reducing regulatory burden on small, well-
capitalized and well-managed institutions.
Statement of Applicability to Institutions with Total Assets Under $1 Billion: This Financial Institution Letter
applies to FDIC-supervised financial institutions with total assets up to $1 billion.
Distribution:
FDIC-Supervised Banks (Commercial and
Savings)
Suggested Routing:
Chief Executive Officer
Compliance Officer
Related Topics:
12 CFR Part 337 – Unsafe and Unsound Banking
Practices
12 CFR Part 347 – International Banking
Attachment:
Final Rule – Expanded Examination Cycle for
Certain Small Insured Depository Institutions and
U.S. Branches and Agencies of Foreign Banks
(See 81 FR 90949, December 16, 2016)
Contact:
Senior Examination Specialist Karen Jones Currie
at (202) 898-3981 or KCurrie@FDIC.gov
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's website at
https://www.fdic.gov/news/news/financial/2017/.
To receive FILs electronically, please visit
https://www.fdic.gov/about/subscriptions/fil.html.
Paper copies may be obtained via the FDIC's
Public Information Center, 3501 Fairfax Drive, E
1002, Arlington, VA 22226 (877-275-3342 or 703
562 2200).
Highlights:
• The FDIC and the other federal financial institution regulatory
agencies adopted as final the interim final rules (IFR) issued
on February 29, 2016, that implemented Section 83001 of
the Fixing America's Surface Transportation Act (FAST Act).
• Under the final rules, which are identical to the IFR, an IDI
with total assets below $1 billion and that meets other
qualifying criteria may qualify for an 18-month on-site safety-
and-soundness examination cycle.
• As authorized by the FAST Act, the agencies have
determined that it is consistent with safety-and-soundness
principles to permit institutions falling within this expanded
total asset threshold, that received a CAMELS composite
rating of "1" or "2," and that meet certain other criteria, to
qualify for an 18-month on-site examination cycle.
• Other qualifying criteria include being well-capitalized, well-
managed, not having undergone any change in control during
the previous 12-month period, and not being subject to a
formal enforcement proceeding or order.
• The expanded 18-month examination cycle also applies to
qualifying U.S. branches or agencies of a foreign bank.
• In all cases, the agencies reserve the right to examine more
frequently if they deem necessary.
• The FDIC is integrating its rules on frequency of safety-and-
soundness examinations for state savings associations and
state nonmember banks by rescinding and removing a
transferred Office of Thrift Supervision regulation, 12 CFR
390.351, Frequency of Safety and Soundness Examinations.
• This FIL rescinds and replaces FIL-90-2007 issued under the
same name and FIL-17-2016 issued to announce the IFR.Inactive
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-2-2017
January 4, 2011
Examination Cycle
Joint Final Rules on Expanded Examination Cycle for Certain Small Insured Depository Institutions
and U.S. Branches and Agencies of Foreign Banks
Summary: The FDIC and the other federal financial institution regulatory agencies have adopted final rules permitting
insured depository institutions (IDIs) with up to $1 billion in total assets, and that meet certain other criteria, to qualify for
an 18-month on-site examination cycle. These rules allow the agencies to better focus supervisory resources on IDIs
that present capital, managerial, or other issues of supervisory concern while reducing regulatory burden on small, well-
capitalized and well-managed institutions.
Statement of Applicability to Institutions with Total Assets Under $1 Billion: This Financial Institution Letter
applies to FDIC-supervised financial institutions with total assets up to $1 billion.
Distribution:
FDIC-Supervised Banks (Commercial and
Savings)
Suggested Routing:
Chief Executive Officer
Compliance Officer
Related Topics:
12 CFR Part 337 – Unsafe and Unsound Banking
Practices
12 CFR Part 347 – International Banking
Attachment:
Final Rule – Expanded Examination Cycle for
Certain Small Insured Depository Institutions and
U.S. Branches and Agencies of Foreign Banks
(See 81 FR 90949, December 16, 2016)
Contact:
Senior Examination Specialist Karen Jones Currie
at (202) 898-3981 or KCurrie@FDIC.gov
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's website at
https://www.fdic.gov/news/news/financial/2017/.
To receive FILs electronically, please visit
https://www.fdic.gov/about/subscriptions/fil.html.
Paper copies may be obtained via the FDIC's
Public Information Center, 3501 Fairfax Drive, E
1002, Arlington, VA 22226 (877-275-3342 or 703
562 2200).
Highlights:
• The FDIC and the other federal financial institution regulatory
agencies adopted as final the interim final rules (IFR) issued
on February 29, 2016, that implemented Section 83001 of
the Fixing America's Surface Transportation Act (FAST Act).
• Under the final rules, which are identical to the IFR, an IDI
with total assets below $1 billion and that meets other
qualifying criteria may qualify for an 18-month on-site safety-
and-soundness examination cycle.
• As authorized by the FAST Act, the agencies have
determined that it is consistent with safety-and-soundness
principles to permit institutions falling within this expanded
total asset threshold, that received a CAMELS composite
rating of "1" or "2," and that meet certain other criteria, to
qualify for an 18-month on-site examination cycle.
• Other qualifying criteria include being well-capitalized, well-
managed, not having undergone any change in control during
the previous 12-month period, and not being subject to a
formal enforcement proceeding or order.
• The expanded 18-month examination cycle also applies to
qualifying U.S. branches or agencies of a foreign bank.
• In all cases, the agencies reserve the right to examine more
frequently if they deem necessary.
• The FDIC is integrating its rules on frequency of safety-and-
soundness examinations for state savings associations and
state nonmember banks by rescinding and removing a
transferred Office of Thrift Supervision regulation, 12 CFR
390.351, Frequency of Safety and Soundness Examinations.
• This FIL rescinds and replaces FIL-90-2007 issued under the
same name and FIL-17-2016 issued to announce the IFR.Inactive