Financial Regulatory Developments Focus — Issue 34, August 31, 2018

BANK PRUDENTIAL REGULATION & REGULATORY CAPITAL

US Federal Reserve Board, OCC and FDIC Expand 18-Month Examination Cycle for Small Banks and Branches and Agencies of Foreign Banks

On August 23, 2018, the U.S. Board of Governors of the Federal Reserve System, U.S. Office of the Comptroller of the Currency and U.S. Federal Deposit Insurance Corporation jointly issued an interim final rule and request for comment to expand the number of insured depository institutions and U.S. branches and agencies of foreign banks eligible for an 18-month on-site examination cycle. The interim final rule implements Section 210 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which amends Section 10(d) of the Federal Deposit Insurance Act. Under the interim final rule, the Federal Reserve Board, OCC and FDIC are permitted to examine qualifying insured depository institutions with less than $3 billion in total assets on an 18-month cycle. Consistent with Section