# Federal Agencies Increase Community Bank Exam Threshold

The Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency have jointly issued an interim final rule raising the asset threshold for community banks to qualify for an 18-month on-site examination cycle from $3 billion to $6 billion. This regulatory adjustment, effective immediately upon Federal Register publication with a 30-day comment period, reduces the frequency of examinations for small, well-managed, and well-capitalized banks, including U.S. branches and agencies of foreign banks. This change aims to lessen regulatory burden and streamline supervisory processes for eligible institutions.

- **Why this matters:** Procurement professionals supporting community banks and related financial services should anticipate potential shifts in demand for compliance and examination-related services due to reduced examination frequency.
- Agencies and contractors providing regulatory compliance, audit, and examination services may see adjustments in contract volumes or scopes as banks become eligible for longer exam cycles.
- Organizations should evaluate how this threshold increase impacts service delivery timelines and resource allocation for bank supervision contracts.
- This rule signals a broader regulatory trend toward easing burdens on smaller financial institutions, which may influence future procurement priorities and contract opportunities in the banking oversight sector.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 13, 2026

### Government Entities
- Board of Governors of the Federal Reserve System (FRB)
- Federal Deposit Insurance Corporation (FDIC)
- Office of the Comptroller of the Currency (OCC)

### Sources
- [Federal Reserve Board - Agencies reduce regulatory burden for community banks, increase eligibility for 18-month exam cycle](https://www.federalreserve.gov/newsevents/pressreleases/bcreg20260910a.htm) - Federal Reserve