Agency Updates - Sept 2026
Agencies issue final rule to prioritize material financial risks
The OCC and FDIC have issued a final rule designed to focus bank supervision and enforcement on material financial risks and compliance with banking laws. The rule creates a uniform definition of “unsafe or unsound practice,” establishes consistent standards for issuing Matters Requiring Attention (MRAs), and aims to provide greater clarity and predictability for supervised institutions. It also directs examiners to prioritize significant financial risks over procedural or documentation-related concerns and applies only to institutions regulated by the agencies.
FDIC approves reciprocal deposits rule
The FDIC approved an interim final rule implementing the 21st Century ROAD to Housing Act that expands the amount of reciprocal deposits qualifying for exclusion from brokered deposit treatment through a new tiered calculation, with a maximum exclusion of $30 billion. The rule also broadens the definition of an “agent institution,” provides additional clarity on the reciprocal deposit framework, and is open for public comment for 30 days following publication in the Federal Register.
SBA proposes increasing threshold to $5B
The SBA has proposed increasing the asset threshold for a “small bank” from $850 million to $5 billion, which would extend regulatory relief tied to SBA small-business classifications to an estimated 760 additional banks. The proposal would also simplify industry size standards by reducing nearly 1,000 classifications to 338 broader categories and incorporate regional market factors to better reflect local economic conditions and competition.