Under current law, an insured depository institution must have $ million or less in total assets to qualify for an eighteen-month examination cycle. See 12 U.S.C. § 1820(d). The amendment would raise this asset cap to $ million, thereby potentially allowing approximately an additional 1,100 institutions to qualify for an extended examination cycle. 6.
The likely resulting pullback in expansion plans will reduce businesses' demand for credit over and above any effects coming from the supply side of the market.