FDIC board approves notice to update and index regulatory thresholds for inflation

The FDIC board voted to publish a notice proposing to update and index specified numerical thresholds in the FDIC regulations to offset the effects of inflation. Staff described the notice as the first phase of a multiphase effort to reevaluate thresholds, beginning with thresholds in part 3 63 related to annual independent audits, reporting, and audit committee composition.

A staff presenter told the board that many FDIC thresholds are static and can unintentionally bring institutions into heightened regulatory requirements because of inflation rather than changes in an institution’s size or risk profile. The proposal would initially update certain thresholds to reflect cumulative inflation since the last adjustment and would adopt an indexing methodology that automatically adjusts thresholds every two consecutive calendar years or when cumulative inflation increases by more than 8 percent; adjustments would take effect April 1 of the year the threshold is adjusted.

Acting Chairman Hill said the agency spent months inventorying numerical thresholds and that indexing would help preserve threshold levels in real terms. Director Rodney Hood said he supported the indexing approach and added—outside the proposal’s scope—that he would like the agency to consider similar indexing for Bank Secrecy Act and anti‑money‑laundering thresholds in the future.

Director Vogt moved to approve the resolution authorizing publication of the proposed rulemaking, the motion was seconded, and the board adopted the resolution. Staff said the notice would be published with a 60‑day comment period and that additional threshold updates would be considered in subsequent proposals.