Congress targets fewer, combined exams for well-rated banks and credit unions under $6B in assets

Federal banking agencies and the National Credit Union Administration write new rules for “limited-scope” exams and combined exams.

Smaller, well-run banks and credit unions won’t see the new exam relief until the rules are finalized, because the bill tells agencies to set the procedures first.

Eligible banks and credit unions begin requesting combined exams (two or three exam types at once).

Instead of separate visits for different exam areas, an institution may have one coordinated exam period, which can reduce repeated disruption but concentrate prep work into one window.

Alternating exam cycles start after an institution’s next full-scope on-site exam.

For an eligible institution, the next exam after a full on-site exam could be limited-scope, which may reduce time regulators spend on-site unless new risks appear.

Agencies include new exam-practices data in their annual reports to Congress.

The public and Congress can see, in the aggregate, whether exams are using fewer examiners, less on-site time, and more experienced exam leaders for smaller institutions.