The federal bank regulatory agencies on Friday announced an
interim final rule that provides temporary relief for certain
community banking organizations related to certain regulations and
reporting requirements as a result, in large part, of their growth in
size from the coronavirus response.
organizations are subject to different rules and requirements based on
their risk profile and asset size. Due to participating in federal
coronavirus response programsâsuch as the Paycheck Protection
Programâand other lending that supports the U. S. economy, many
community banking organizations have experienced rapid and unexpected
increases in their sizes, which are generally expected to be
temporary. The temporary increase in size could subject community
banking organizations to new regulations or reporting requirements.
With regard to the requirements covered by the interim final
rule, community banking organizations that have crossed a relevant
threshold generally will have until 2022 to either reduce their size,
or to prepare for new regulatory and reporting standards. The rule
applies to community banking organizations financial institutions with
less than $10 billion in total assets as of December 31, 2019.
Community banking organizations with under $10 billion in assets may
have fewer resources available to prepare and comply with previously
unanticipated regulatory requirements, especially during a time of
The rule will be effective immediately
upon publication in the Federal Register, and comments will be
accepted for 60 days after publication in the Federal Register. Last
Update: November 20, 2020
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