A bipartisan group of senators this week introduced legislation to raise the asset threshold under which banks are subject to longer examination cycles.
The Tailored Regulatory Updates for Supervisory Testing, or TRUST, Act would increase the total asset threshold under which institutions qualify for an 18-month exam cycle from $3 billion to $6 billion. The bill is sponsored by Sens. Tedd Budd (R-N.C.), John Kennedy (R-La.), Andy Kim (D-N.J.) and Angela Alsobrooks (D-Md.). A companion bill was introduced in the House by Reps. Tim Moore (R-N.C.) and Ritchie Torres (D-N.Y.) and was advanced by the House Financial Services Committee last year.
American Bankers Association President and CEO Rob Nichols said the legislation will help ensure bank regulations remain right-sized and that the examination process is appropriately tailored for community banks.
“We look forward to working with members of Congress and other stakeholders to move this commonsense bill forward as we continue our efforts to ensure statutory asset thresholds are indexed for growth so they remain relevant and effective over time,” he said.
