The Federal Reserve Board, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency issued an interim final rule on September 10, 2026, expanding the number of community banks eligible for an 18-month examination cycle. The 21st Century ROAD to Housing Act raised the total-asset threshold from $3 billion to $6 billion for certain supervised institutions to qualify for the extended on-site cycle.
By law, institutions seeking the extended cycle must satisfy specified criteria, including being considered well managed and well capitalized. The interim final rule incorporates the higher threshold into the agencies’ regulations governing well-rated institutions.
The change extends the scheduled on-site examination cycle for qualifying small, non-complex institutions from 12 months to 18 months. The agencies said the longer cycle appropriately reduces the time and resources spent by low-risk institutions, while maintaining the existing practice of offsite monitoring between scheduled examinations.
The rule also makes parallel changes to regulations governing the on-site examination cycle for U.S. branches and agencies of foreign banks. It will take effect immediately upon publication in the Federal Register, and the agencies will accept comments for 30 days.