FDIC Updates Lending Limits for Bank Insiders
The Federal Deposit Insurance Corporation (FDIC) has approved a proposal to update regulations regarding lending limits for bank insiders. The proposed rule would raise and index thresholds for certain lending limits, ensuring they align with those set by the Board of Governors of the Federal Reserve under Regulation O.
The current lending limits for executive officers and other insiders have not been updated since several decades ago. The FDIC's proposal aims to reflect inflation and economic growth that has occurred during this time. The proposed rule would also streamline the thresholds, making compliance simpler and providing for future automatic adjustments to account for changing economic conditions.
The changes are consistent with those proposed by the FRB, which would standardize compliance and avoid disparate treatment between FDIC-supervised institutions and other insured depository institutions. Comments on the proposal are due 60 days after its publication in the Federal Register.