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FDIC provides temporary relief from part 363 audit and reporting requirements

October 21, 2020 Article 1 min read
Authors:
Ryan Abdoo Kate Krones
The Federal Deposit Insurance Corporation (FDIC) issued an interim final rule amending the measurement date for determination of applicability of part 363 of the FDIC’s regulations.
Individual working alone on laptopMany banks experienced significant and unplanned asset growth after participating in the Paycheck Protection Program or other COVID-19-related government programs. To provide relief to banks that have experienced this asset growth and are possibly crossing a FDICIA threshold for the first time, the Federal Deposit Insurance Corporation (FDIC) has issued an interim final rule.

The interim final rule amends the measurement date for determination of applicability of part 363 of the FDIC’s regulations. Now, banks can determine applicability of part 363 based on the lesser of consolidated total assets as of Dec. 31, 2019 or as of the beginning of the fiscal year ending in 2021. This interim final rule is effective as of the date of publication in the Federal Register and will remain in effect through Dec. 31, 2021, barring further action by the FDIC.

It should also be noted that the FDIC reserves the authority to require a bank to comply with requirements under part 363 if asset growth is determined to be related to a merger or acquisition.

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