Inactive Financial Institution Letters
December 20, 2018
Interagency Proposed Rule on Thresholds Increase for Major Assets Prohibition of the Depository Institution Management Interlocks Act Rules
The FDIC and the other federal financial institution regulatory agencies have jointly issued a proposed rulemaking to raise the thresholds for the Major Assets Prohibition of the Depository Institution Management Interlocks Act (DIMIA) implementing rules.
Statement of Applicability to Institutions with Total Assets Under $1 Billion: This Financial Institution Letter applies to FDIC-supervised financial institutions with total assets over $1 billion.
- The FDIC, the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve System are issuing a Notice of Proposed Rulemaking (NPR) with a request for comment on a proposal to adjust the major assets prohibition thresholds of the DIMIA rule to fulfill a commitment made in the 2017 Economic Growth and Regulatory Paperwork Reduction Act Report to Congress.
- Under the existing major assets prohibition, a management official of a depository organization with total assets exceeding $2.5 billion (or any affiliate of such an organization) may not serve at the same time as a management official of an unaffiliated depository organization with total assets exceeding $1.5 billion (or any affiliate of such an organization), regardless of the location of the two depository organizations.
- The NPR proposes to increase both thresholds in the major assets prohibition rule to a single $10 billion threshold based on general market changes since 1996 when the major assets threshold in DIMIA was amended.
- The NPR also solicits comments on three alternative approaches to raise the major assets prohibition thresholds. Two are based on market changes, and one is based on inflation adjustments.
- Comments on the proposed rule and alternative approaches to raise the thresholds are due 60 days after publication in the Federal Register.
- FDIC-Supervised Institutions
- Chief Executive Officer
- Compliance Officer
- FDIC Rules and Regulations, 12 CFR Part 348 (Management Official Interlocks)
- Proposed Rule – Threshold Increase for Major Assets Prohibition of the Depository Institution Management Interlocks Act Rules
- Senior Examination Specialist Karen Currie at (202) 898-3981 or KCurrie@FDIC.gov
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at https://www.fdic.gov/news/news/financial/2018/.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).