Inactive Financial Institution Letters
December 20, 2018
Management Interlocks
Interagency Proposed Rule on Thresholds Increase for Major Assets Prohibition of the Depository Institution Management Interlocks Act Rules
Printable Format:
Summary:
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.
Highlights:
- 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.
Suggested Distribution:
- FDIC-Supervised Institutions
Suggested Routing:
- Chief Executive Officer
- Compliance Officer
Related Topics:
- FDIC Rules and Regulations, 12 CFR Part 348 (Management Official Interlocks)
Attachment:
- Proposed Rule – Threshold Increase for Major Assets Prohibition of the Depository Institution Management Interlocks Act Rules
Contact:
- Senior Examination Specialist Karen Currie at (202) 898-3981 or KCurrie@FDIC.gov
Note:
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).