📈FDIC Proposes Rule for Regulatory Threshold Adjustments
Adjusting and Indexing Certain Regulatory Thresholds
Summary
The Federal Deposit Insurance Corporation (FDIC) is inviting comment on a proposed rule that would amend certain regulatory thresholds in the FDIC's regulations to reflect inflation. Specifically, the proposal would generally update such thresholds to reflect inflation from the date of initial implementation or the most recent adjustment, and provide for future adjustments pursuant to an indexing methodology. The changes set forth in this proposal would provide a more durable regulatory framework by helping to preserve, in real terms, the level of certain thresholds set forth in the FDIC's regulations, thereby avoiding the undesirable and unintended outcome where the scope of applicability for a regulatory requirement changes due solely to inflation rather than actual changes in an institution's size, risk profile or level of complexity.
Agencies
- Federal Deposit Insurance Corporation
Business Impact
$$$ - High
The proposed regulation from the FDIC involves adjusting and indexing certain regulatory thresholds, which will directly affect compliance requirements for financial institutions based on inflation. Business owners must be aware of these changes for financial reporting, audit requirements, and regulatory measures that may impact operational burden.