Federal Register #2026-15995

FDIC Proposed Rule to Increase Credit Extension Thresholds for Insiders

This opportunity involves a proposed regulatory change by the Federal Deposit Insurance Corporation (FDIC), not a procurement of goods or services. - The FDIC is proposing amendments to regulations on extensions of credit to insiders at FDIC-supervised institutions - Key changes include: - Raising the threshold for extensions of credit to executive officers (not otherwise specifically authorized) from $100,000 to $400,000 - Increasing the threshold for extensions of credit to insiders requiring prior board approval from $500,000 to $2,000,000 - Introducing an indexing methodology to periodically update these thresholds based on nominal GDP, reflecting economic growth and inflation - No OEMs, vendors, or products are involved, as this is a regulatory rulemaking proposal - The intent is to modernize compliance requirements and ensure thresholds remain aligned with current economic conditions

Description

The Federal Deposit Insurance Corporation (FDIC) is proposing to increase quantitative thresholds for certain extensions of credit to insiders of FDIC-supervised institutions, as restricted by the Federal Reserve Act and related regulations. The proposal includes raising the threshold for extensions of credit to executive officers not otherwise specifically authorized by statute from $100,000 to $400,000, and increasing the threshold for extensions of credit to insiders requiring prior approval by the board of directors from $500,000 to $2,000,000. Additionally, the proposal establishes an indexing methodology to periodically update these thresholds over time to reflect economic growth and inflation. Comments on the proposed rule must be received by October 5, 2026.

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