Small Bank Exam Cycle Improvement Act of 2018

Bill 115 hr 5076, also known as the Small Bank Exam Cycle Improvement Act of 2018, aims to reduce the regulatory burden on small banks by extending the examination cycle for certain institutions. Currently, small banks are subject to more frequent examinations by regulatory agencies, which can be costly and time-consuming for these institutions.

The bill proposes to increase the examination cycle for well-capitalized banks with assets of less than $3 billion from 18 months to 24 months. This would allow these banks to focus more on serving their customers and communities rather than preparing for and undergoing examinations.

Proponents of the bill argue that extending the examination cycle for small banks will help reduce compliance costs and regulatory burden, allowing these institutions to better allocate resources towards lending and economic growth. They believe that this will ultimately benefit consumers and small businesses by increasing access to credit and financial services. Opponents of the bill express concerns about the potential risks of reducing regulatory oversight on small banks, particularly in light of the 2008 financial crisis. They argue that more frequent examinations are necessary to ensure the safety and soundness of the banking system and protect consumers from potential risks. Overall, the Small Bank Exam Cycle Improvement Act of 2018 seeks to strike a balance between reducing regulatory burden on small banks and maintaining the safety and stability of the financial system. The bill has garnered bipartisan support and is currently under consideration in Congress.