Sponsors (7)
The bill eases regulatory burden for mid-sized banks by lengthening FDIC exam cycles, trading greater operational relief for those banks against increased risk to depositors, taxpayers, and potentially overall financial stability.
Mid-sized banks (assets $3B–$6B) will face less-frequent or longer FDIC examination cycles, reducing regulatory compliance burden and supervisory costs for those institutions.
Depositors and taxpayers could face higher near-term risk because problems at more mid-sized banks may be detected later with less-frequent FDIC exams.
Reducing supervisory frequency across additional banks may weaken oversight and increase systemic risk if multiple institutions deteriorate undetected, raising the chance of wider financial instability.
Based on analysis of 2 sections of legislative text.
Raises two asset-size thresholds in 12 U.S.C. §1820(d) from $3 billion to $6 billion, expanding which banks qualify for longer examination cycles.
Official title: Amend the Federal Deposit Insurance Act to permit Federal banking agencies to examine qualifying insured depository institutions with under $6,000,000,000 in total assets not less than once during each 18-month period, and for other purposes.
Introduced February 11, 2026 by Theodore Paul Budd · Last progress February 11, 2026
Raises the asset-size thresholds that determine which insured depository institutions qualify as "well-managed" for longer regulatory examination cycles by changing the statutory cutoffs from $3,000,000,000 to $6,000,000,000. This means more banks will meet the higher asset threshold and become eligible for less-frequent supervisory examinations or related treatment under the amended statute. The change is a numeric amendment to 12 U.S.C. §1820(d) that expands which institutions may receive relaxed examination timing; it does not create new programs or appropriate funds.