As the primary federal supervisors for state-chartered banks, the Board and Federal Deposit Insurance Corporation (FDIC) may alternate responsibility for conducting these examinations with the appropriate state supervisory authority if the Board or FDIC determines that the state examination carries out the purposes of the statute. The $ million asset cutoff for an eighteen-month examination cycle has not been raised since 1994.
The Board’s proposed amendment would raise this asset cap from $ million to $ million, thus potentially allowing approximately an additional 1,100 insured depository institutions to qualify for an eighteen-month examination cycle. The proposed amendment would provide meaningful relief to small institutions without jeopardizing the safety and soundness of insured depository institutions.