The Board updated its Overview of State Member Bank Examination Frequency and Coordination due to recent changes to the criteria for state member banks and U.S. branches and agencies of foreign banks to be eligible for an expanded on-site examination cycle of 18 months, rather than 12 months.

The Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (collectively, “the agencies”) jointly adopted as final and without change the agencies’ interim final rules published in the Federal Register on February 29, 2016, that implemented section 83001 of the Fixing America’s Surface Transportation Act (FAST Act). More... Section 83001 of the FAST Act permits the agencies to conduct a full-scope, on-site examination of qualifying insured depository institutions with less than $1 billion in total assets no less than once during each 18-month period. Prior to enactment of the FAST Act, only qualifying insured depository institutions with less than $500 million in total assets were eligible for an 18-month on-site examination cycle. The final rules, like the interim final rules, generally allow well capitalized and well managed institutions with less than $1 billion in total assets to benefit from the extended 18-month examination schedule. In addition, the final rules adopt as final parallel changes to the agencies’ regulations governing the on-site examination cycle for U.S. branches and agencies of foreign banks, consistent with the International Banking Act of 1978 (Guidance, Examinations and Inspections at 3-1532.7).

The supplementary information for these regulations has been reorganized to parallel the existing structure of similar content in the Federal Reserve Regulatory Service.

The Board, the FDIC, and the OCC are amending their Community Reinvestment Act (CRA) regulations to adjust the asset-size thresholds used to define “small bank” or “small savings association” and “intermediate small bank” or “intermediate small savings association.” More... As required by the CRA regulations, the adjustment to the threshold amount is based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The FDIC is also amending its CRA notice requirements to reflect two technical changes concerning the manner in which the agency will receive public comments considered in the CRA examination process. The final rule is effective January 18, 2017 (Regulation BB at 6-1220, Docket R-1554), the same day it was published in the Federal Register.

The Board issued a final rule amending its rules of practice and procedure to adjust the amount of each civil money penalty provided by law within its jurisdiction to account for inflation as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. This final rule is effective January 25, 2017 (Procedural and Organizational Rules, Rules of Practice for Hearings at 8-043, Docket R-1543), the same day it was published in the Federal Register.