Tailored Regulatory Updates for Supervisory Testing Act of 2025

This bill would allow a larger number of small insured depository institutions to qualify for less frequent examinations by federal financial regulators. To be eligible, an institution must be considered well-capitalized and well-managed based on its most recent evaluation. Specifically, the proposal would increase the maximum asset threshold for these reduced examination schedules from less than $3 billion to less than $6 billion.

This bill affects small insured depository institutions that are considered well-capitalized and well-managed according to their most recent examinations. Specifically, it impacts financial institutions with total assets between $3 billion and $6 billion by qualifying them for less frequent examinations from federal financial regulators. Federal financial regulators responsible for conducting these supervisory tests are also affected by the change in examination frequency requirements.

• Expansion of eligibility for less frequent bank examinations. The bill increases the maximum asset threshold from $3 billion to $6 billion for small insured depository institutions to qualify for extended intervals between federal regulatory examinations.
• Regulatory relief for well-capitalized and well-managed institutions. To qualify for the reduced examination frequency, institutions must be considered well-capitalized and well-managed based on their most recent federal examination.

This bill modifies existing federal financial regulations by raising the asset threshold for small insured depository institutions to qualify for less frequent examinations. It increases the maximum asset level for well-capitalized and well-managed institutions from less than $3 billion to less than $6 billion.

The bill aims to expand the number of small, well-capitalized, and well-managed depository institutions that qualify for less frequent examinations by federal financial regulators. It achieves this by increasing the maximum asset threshold for eligibility from less than $3 billion to less than $6 billion.