The federal banking agencies today issued final rules extending the on-site exam cycle for banks with up to $1 billion in assets from 12 months to 18 months, effective immediately. The rules are identical to interim final rules issued earlier this year.
This regulatory change — long advocated as part of ABA’s Agenda for America’s Hometown Banks — was included in a spending bill at the end of 2015 as a result of strong advocacy efforts by ABA and the state associations. The measure will qualify an estimated 611 institutions for the extended exam cycle. Previously, the 18-month exam cycle was only available to institutions with asset sizes less than $500 million.
