The federal bank regulatory agencies, including the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, issued an interim final rule on September 10, 2026. The rule increases the number of community banks eligible for an extended on-site examination cycle.
The legislation, known as the 21st Century ROAD to Housing Act, raised the total asset threshold for certain supervised institutions from $3 billion to $6 billion. This change allows these small, non-complex firms to qualify for an 18-month on-site exam cycle, up from the standard 12 months.
To be eligible for the extended cycle, institutions must meet specific criteria, including being considered well managed and well capitalized. The agencies stated that extending the cycle for these low-risk institutions appropriately reduces the burden, including time and resources spent on supervision.
The rule also makes parallel changes to regulations governing the on-site examination cycle for U.S. branches and agencies of foreign banks. The interim final rule is effective immediately upon publication in the Federal Register, and the agencies will accept comments for 30 days.
