ICBA called on the FDIC to raise the threshold for auditor attestation and reporting requirements under its proposal to adjust and index certain regulatory thresholds.
Details: In a comment letter on the FDIC proposed rule on adjusting and indexing certain regulatory thresholds, ICBA said:
The agency should raise the threshold requiring internal controls over financial reporting to $10 billion in assets because of the significant burden the requirement imposes on community banks that pose a low risk to the banking system.
It supports the FDIC’s proposal to adjust and index the audit and reporting requirement thresholds under Part 363 of the agency’s regulations, but its proposal to raise the threshold to $5 billion in assets does not go far enough.
About the Proposal: The FDIC’s goal for the proposed rule is to “address the unintended outcome where an institution becomes subject to additional or more stringent regulatory requirements due solely to inflation rather than actual changes in the institution’s size, risk profile or level of complexity.”
What It Means for Community Bankers: Because the FDIC has not made regular adjustments to the Part 363 asset thresholds mandated under the Federal Deposit Insurance Corporation Improvement Act of 1991 to keep pace with industry changes, the current limits no longer provide a meaningful exemption to community banks.
Grassroots Success: ICBA thanks community bankers for submitting comment letters on the proposal before Friday’s deadline.