Federal Reserve System, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency officials are proposing changes as a means of updating management interlock rules.
The agencies are seeking to update rules restricting the ability of a director or other management officials to serve at more than one depository institution or depository holding company. The proposed changes would provide relief for community banks and better align with other rules.
The current management interlock rules presently prohibit a director or other management official working at a depository organization with more than $2.5 billion in total assets from serving at the same time at an unaffiliated depository organization with more than $1.5 billion in total assets.
The agencies are soliciting proposal comment regarding raising both thresholds to $10 billion in total assets, in consideration of industry growth over the past 20 years.
Under the proposal, management officials would generally remain prohibited from serving with multiple depository organizations that are above the new thresholds, limiting the potential risk of anticompetitive conduct at larger institutions.
The agencies are also requesting public comment on other proposed approaches to raising the current thresholds. Comments will be accepted for 60 days after publication in the Federal Register.