Highlights:
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The FDIC and the other federal financial institution regulatory agencies jointly
adopted as final the interim rules issued on April 10, 2007, that implemented
section 605 of the Financial Services Regulatory Relief Act of 2006 and related
legislation (collectively, the Examination Amendments).
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The final rule raises from $250 million to $500 million the total asset
threshold below which an insured depository institution may qualify for an
18-month (rather than 12-month) on-site safety and soundness examination cycle.
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As authorized by the Examination Amendments, the agencies determined that it is
consistent with safety and soundness to permit institutions that fall within
this expanded total asset threshold, and that received a CAMELS composite rating
of 1 or 2, and that meet other qualifying criteria to qualify for an 18-month
on-site examination cycle.
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Other qualifying criteria include being well-capitalized, well-managed, not
having undergone any change in control during the previous 12-month period, and
not being subject to a formal enforcement proceeding or order.
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The extended 18-month examination cycle applies similarly to qualifying U.S.
branches or agencies of a foreign bank.
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In all cases, the agencies reserve the right to examine more frequently if they
deem it necessary.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested
Routing:
Chief Executive Officer
Compliance Officer
Related
Topics:
FDIC Rules and Regulations, 12 CFR Parts 337 and 347
Attachment:
Final Rule –
Expanded Examination Cycle for Certain Small Insured Depository Institutions and
U.S. Branches and Agencies of Foreign Banks (72 FR 54347, September 25, 2007) -
PDF (PDF Help)
Contact:
Mindy West, Chief, Policy and Program Development, at MiWest@fdic.gov or 202-898-7221
Printable
Format:
FIL-90-2007 - PDF (PDF Help)
Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site
at www.fdic.gov/news/news/financial/2007/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be obtained through the
FDIC's Public Information Center (1-877-275-3342 or 703-562-2200).
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