Regulators expand 18-month exam cycle eligibility to more community banks

More community banks will qualify for longer intervals between on-site exams under an interim final rule issued by the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the Federal Reserve, raising the asset threshold for the 18-month exam cycle from $3 billion to $6 billion.

The higher threshold, mandated by the 21st Century ROAD to Housing Act, a bill TBA supported, means that well-managed, well-capitalized banks with up to $6 billion in assets can now go a year and a half between full-scope exams instead of the standard 12 months, freeing up staff time and resources that would otherwise be spent on exam prep.

The rule took effect immediately upon publication in the Federal Register, and a 30-day comment window is now open.