Final Rule Adjusting and Indexing Certain Regulatory Thresholds

Summary:

The Federal Deposit Insurance Corporate (FDIC) is issuing a final rule that amends certain regulatory thresholds in the FDIC’s regulations to reflect inflation, including those related to annual independent audit and reporting requirements. The final rule generally updates certain regulatory thresholds to reflect inflation from the date of initial implementation, or the most recent adjustment, and provides for future adjustments pursuant to an indexing methodology. 

Statement of Applicability: The contents of, and material referenced in, this FIL apply to all FDIC-insured financial institutions.

Statement of Applicability: The contents of, and material referenced in, this FIL apply to all FDIC-supervised financial institutions, prospective employees of banks, and potential acquirers of failed bank assets.

Highlights:

The final rule amends certain regulatory thresholds in FDIC regulations to reflect inflation and ensures that such thresholds preserve their intended application in real terms over time. The final rule: 

• Updates certain regulatory thresholds to reflect historical inflation.
• Includes an indexing methodology for subsequent, periodic threshold adjustments that would be implemented automatically every two consecutive years. These threshold adjustments would be effective as of October 1st of the year the threshold is adjusted.
• If an insured depository institution will no longer be subject to part 363 requirements under the updated thresholds in effect as of January 1, 2026, the final rule provides immediate regulatory relief by clarifying these institutions will no longer be subject to such requirements.
• Additionally, if it appears likely that a forthcoming threshold adjustment will result in an IDI with total assets above the threshold falling below the adjusted threshold, the IDI’s appropriate Federal banking agency may exercise discretion to not require compliance with the relevant part 363 requirement.