Federal Deposit Insurance Corporation issues final rule to inflation-adjust and biennially index key regulatory thresholds including Part 363 audit requirements

The Federal Deposit Insurance Corporation issued a final rule amending inflation-sensitive thresholds across its regulations, including those tied to annual independent audit and reporting requirements. The changes are intended to preserve the thresholds’ real-term application over time and add a mechanism for future automatic updates. The rule updates covered thresholds for historical inflation from the date of initial implementation or the most recent adjustment and establishes an indexing methodology under which threshold adjustments would be implemented automatically every two consecutive years, becoming effective on October 1 of the adjustment year. It also provides immediate regulatory relief for insured depository institutions that will no longer be subject to Part 363 requirements under the updated thresholds in effect as of January 1, 2026, by clarifying those institutions are no longer subject to the relevant requirements. In addition, if a forthcoming adjustment is likely to move an institution from above a threshold to below the adjusted threshold, the institution’s appropriate federal banking agency may exercise discretion not to require compliance with the relevant Part 363 requirement.