Federal Deposit Insurance Corporation launches consultation on inflation-adjusted and automatically indexed regulatory thresholds

The Federal Deposit Insurance Corporation published a notice of proposed rulemaking to amend selected regulatory thresholds in its regulations to reflect inflation, including thresholds tied to annual independent audit and reporting requirements. Regulatory thresholds such as total assets are used to determine when specific requirements apply and to tailor expectations based on an institution’s size, risk profile, and complexity. The proposal would update certain thresholds for historical inflation from their initial implementation date or most recent quantitative adjustment, and would add an indexing methodology for automatic updates every two consecutive calendar years based on cumulative inflation since the rule’s effective date. Additional automatic adjustments would also occur in any intervening calendar year when cumulative inflation since the most recent adjustment exceeds 8 percent. The proposed rule is positioned as the first phase of a multi-phase effort to reevaluate thresholds across FDIC regulations. Comments will be accepted for 60 days after publication in the Federal Register.