The Federal Deposit Insurance Corporation published a proposal to raise and then index for inflation a first set of asset-based and other numerical regulatory thresholds, aiming to prevent inflation from gradually expanding the scope of requirements over time. A key focus is updating thresholds tied to the audit, internal control, audit committee composition, and related reporting framework. The initial tranche includes a couple dozen thresholds in 12 C.F.R. part 363 that the FDIC said have not been raised in decades and have increasingly brought smaller institutions into scope, creating practical challenges such as staffing audit committees with sufficiently experienced members in rural areas. Indexing is intended to keep thresholds constant in real terms so that an institution does not become subject to an asset-based requirement solely due to changes in the value of the U.S. dollar. The FDIC also flagged ongoing evaluation of other thresholds, including the continuous examination program and the USD 10 billion threshold used in the large bank deposit insurance pricing scorecard, and said it plans to engage with other agencies on interagency thresholds as appropriate.
Federal Deposit Insurance Corporation 2025-07-17
Federal Deposit Insurance Corporation proposes raising and inflation indexing Part 363 audit and reporting thresholds
The Federal Deposit Insurance Corporation proposed raising and indexing certain asset-based and numerical regulatory thresholds to prevent inflation from expanding requirements' scope. The proposal targets thresholds related to audit, internal control, audit committee composition, and reporting frameworks, increasingly affecting smaller institutions. The FDIC is also evaluating other thresholds, including those in the continuous examination program and the USD 10 billion large bank deposit insurance pricing scorecard.