Federal banking regulators have expanded eligibility for the 18-month on-site examination cycle, a change that could reduce examination burden for more community banks.
The Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency issued an interim final rule on September 10, 2026, increasing the total asset threshold for qualifying institutions from $3 billion to $6 billion.
What changed
Under the new threshold, certain banks with less than $6 billion in total assets may qualify for an 18-month on-site examination cycle rather than the standard 12-month cycle. The change implements a provision of the 21st Century ROAD to Housing Act.
Eligibility is not based on asset size alone. Qualifying institutions must continue to meet applicable supervisory criteria, including being well managed and well capitalized. Regulators also retain the authority to examine an institution more frequently when they determine it is necessary.
What it means for community banks
For eligible community banks, moving from a 12-month to an 18-month cycle may reduce the time and resources associated with preparing for on-site examinations. The agencies will continue off-site monitoring between scheduled exams.
The change may be particularly relevant for growing community banks that previously exceeded the $3 billion threshold but remain below $6 billion. Banks should review the rule and their own supervisory status to determine whether they meet the eligibility requirements.
Additional information
The interim final rule becomes effective upon publication in the Federal Register. The agencies are accepting comments for 30 days.
Read the joint agency announcement from the Federal Reserve.
Review OCC Bulletin 2026-45 for additional eligibility details.