The FDIC today approved a final rule raising the threshold at which bank directors or other management officials are prohibited from serving at more than one depository institution or holding company. Currently, directors or management officials working at an institution with more than $2.5 billion in total assets may not simultaneously serve at an unaffiliated depository organization with more than $1.5 billion in total assets. The final rule raises both of those thresholds to $10 billion in total assets.
The rule accounts for changes in the U.S. banking market since the current thresholds were established in 1996 and comes in response to feedback received during the recent decennial Economic Growth and Regulatory Paperwork Reduction Act review. In previous comments, ABA supported modernizing the rule, but opposed using an arbitrary asset threshold to define a community bank.