Updated for Federal Register notice, comment deadline
Thresholds for certain lending limits for executive officers and other insiders of banks would be raised and indexed under a proposal issued Friday by the federal bank deposit insurance agency and the nation’s central bank.
The Federal Deposit Insurance Corporation (FDIC) said the proposal “seeks to ensure that the FDIC’s lending thresholds to insiders align with those proposed by the Board of Governors of the Federal Reserve (FRB) under Regulation O of the Federal Reserve Act.” The Fed Board approved a similar proposal, also Friday.
According to the FDIC, the proposal (issued by its board by notation vote without a meeting), the proposal would update dollar thresholds to reflect inflation and economic growth that has occurred since they were adopted decades ago. The agency said the proposal would also streamline the thresholds to simplify compliance and provide for future automatic adjustments to account for changing economic conditions.
“The FDIC’s proposed changes are consistent with those proposed by the FRB,” the FDIC said in a statement. “By updating these thresholds to reflect current and future economic conditions and aligning them with the FRB’s Regulation O proposal, the FDIC would standardize compliance and avoid disparate treatment between FDIC-supervised institutions and other insured depository institutions.”
Comments are due Oct. 5.
Federal Register notice – Federal Reserve
Federal Register notice – FDIC
FDIC Board Approves Proposal to Amend Regulations Regarding Lending Limits for Bank Insiders
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