As of Jan. 1, banks with less than $1 billion in consolidated assets will no longer be required to provide federal regulators with annual reports of independent audit findings, according to a final rule announced Tuesday.
That threshold is up from $500 million.
The Federal Deposit Insurance Corp. (FDIC), in a Financial Institution Letter and Federal Register notice, said insured depository institutions (IDIs) below that new, $1 billion asset threshold as of this Dec. 31 need not provide the reports.
The same applies to other changes in Part 363’s audit requirements, including the internal control over financial reporting (ICFR) requirement, for which the asset threshold is raised from $1 billion to $5 billion under the final rule.
These changes affect Part 363 of the agency’s reporting and compliance requirements. Other changes to this part include:
- Increase in the threshold related to minimum audit committee requirements for IDIs from the range of $500 million to less than $1 billion in total assets to the range of $1 billion to less than $5 billion in total assets, as well as the threshold of $1 billion or more in total assets to $5 billion or more.
- Increase in the threshold related to additional audit committee requirements from $3 billion to also $5 billion.
- Updated compensation threshold related to the determination of whether a director is considered “independent of management” from $100,000 to $120,000.
Part 363 is just one aspect of Tuesday’s final rule, which makes updates to certain regulatory thresholds to reflect historical inflation.
Leave a Reply