ABA Welcomes Temporary Auditing, Reporting Relief from FDIC

In a comment letter to the FDIC today, ABA welcomed a recent interim final rule granting temporary relief for certain banks from auditing, internal control and audit committee requirements that would have resulted from the rapid inflow of assets and deposits from the coronavirus pandemic. The rule effectively froze asset levels to those recorded as of Dec. 31, 2019, for purposes of determining banks’ obligations.

Without this relief, ABA noted that “approximately 290 banks would be newly required to comply with these additional regulations in 2021. We also believe hundreds more could soon qualify if further significant stimulus programs are enacted.”

Beyond this temporary relief, ABA also recommended that the FDIC consider recalibrating the asset threshold levels, noting that it has been 15 years since the last adjustments were made, and that the current levels “may be inappropriate in today’s environment.”