Regulators and lawmakers are raising asset thresholds that determine which rules apply to community banks. Under the housing law enacted in July, Congress increased the threshold for qualifying banks to receive exams every 18 months instead of annually from $3 billion to $6 billion. The Fed, OCC, and FDIC are also moving toward a $30 billion threshold in several areas, while the FDIC has raised thresholds for certain audit requirements. Other proposals would raise thresholds under the Community Reinvestment Act and Regulation O. The changes are intended to better match regulation with a bank’s size and risk and, in some cases, account for inflation.
How would these higher thresholds affect your institution? Which changes would provide the most meaningful regulatory relief?