ABA Statement on FDIC Board Meeting

“We applaud the FDIC’s move toward indexing supervisory asset thresholds, which is a long-overdue step toward a more rational and modern bank regulatory framework. For many years, ABA has argued that arbitrary asset thresholds impose unintended constraints and costs on banks while making it harder for regulators to focus on the largest sources of risk—effects that are compounded when thresholds remain static over years and even decades. Just as important as indexing itself is ensuring that the chosen measure reflects structural changes in the banking sector and overall economic growth. We look forward to reviewing the proposal’s use of CPI and intend to explore alternatives such as nominal GDP or total bank assets.  We hope today’s action by the FDIC is the first of many in this area, that other regulatory agencies will exercise their existing authorities to join this effort, and that Congress will explore potential legislative solutions going forward.

“We also appreciate the FDIC’s efforts to explore the framework surrounding supervisory appeals and hope that any eventual reforms will lead to a more independent, fair and credible process. In consultation with our members, we will continue to review the other actions taken by the FDIC board today, including the proposal to rescind the 2023 CRA rule and return to a legal CRA rule that does not exceed congressional authority. We will be prepared to weigh in as appropriate.”