US HB4437

Insured depository institutions and credit unions with $6 billion or less in consolidated assets that are well managed and well capitalized qualify for alternating limited-scope examinations after receiving a full-scope, on-site examination from their federal regulator

Qualifying institutions may request that regulators combine two or three separate examinations (safety and soundness, consumer compliance, and IT/cybersecurity) into a single examination conducted at the same time

Institutions currently subject to formal enforcement proceedings or orders are excluded from examination relief; depository institutions also lose eligibility if a new person acquired control since the most recent full-scope examination

Federal banking agencies and the National Credit Union Administration must issue implementing rules within 12 months, establishing procedures for limited-scope examinations and for reviewing institutions experiencing material changes or compliance failures

Regulators must minimize examiner counts and time spent on-site for institutions under $6 billion, schedule examinations at convenient times, provide advance notice of issues, and report aggregate examination practice data annually to Congress