Community banks could use asset data from the end of last year to determine applicability of various regulatory assets thresholds for the remainder of this year and all of next under an interim final rule issued by the federal banking agencies with a public comment deadline of Feb. 1.
The Federal Deposit Insurance Corp. (FDIC), Federal Reserve, and Office of the Comptroller of the Currency (OCC), said they were issuing the interim final rule to “mitigate temporary transition costs on banking organizations related to the coronavirus disease 2019.”
The agencies said that temporary asset thresholds affect institutions with less than $10 billion total assets as of Dec. 31, 2019 (otherwise known as “community banks”). Institutions affected, the agencies said, include national banks, savings associations, state banks, bank holding companies, savings and loan holding companies, and U.S. branches and agencies of foreign banking organizations.
In addition to the regulatory thresholds, the agencies said, instructions to a number of regulatory reports were being revised to provide that community banking organizations may use asset data as of Dec. 31, 2019, in order to determine reporting requirements for reports due in calendar years 2020 or 2021.
Reg lookup: Temporary Asset Thresholds