meta_id 3382677

On August 6, 2026, the Federal Deposit Insurance Corporation (FDIC) published a proposed rule to increase quantitative thresholds governing extensions of credit to insiders of FDIC-supervised institutions. The proposal would raise the threshold for extensions of credit to executive officers not otherwise specifically authorized by statute from $100,000 to $400,000, and increase the threshold for extensions of credit to insiders requiring prior approval by the board of directors from $500,000 to $2,000,000. The FDIC would also establish an indexing methodology to periodically update these thresholds every five years based on nominal gross domestic product (GDP) growth. The proposal addresses thresholds that have remained largely unchanged since 1983 and 1992 respectively, failing to reflect current economic conditions and imposing unnecessary regulatory burden on community banks. The FDIC estimates that up to 1,457 FDIC-supervised institutions could be directly affected by the proposed increase to the $2,000,000 threshold, with approximately 956 small institutions (those with assets of $850 million or less) potentially benefiting from reduced administrative burden. By raising these thresholds, the FDIC expects affected institutions will face fewer board approval requirements for insider loans, reducing administrative costs and potentially improving their ability to retain qualified executive officers and directors. The proposed rule would eliminate the existing $25,000 minimum dollar-based threshold, streamlining compliance by applying only a percentage-based calculation (2.5 percent or 5 percent of unimpaired capital and unimpaired surplus) alongside the new dollar-based maximums. The FDIC determined the proposal will not impose significant economic impact on a substantial number of small entities. The comment period closes on October 5, 2026. Stakeholders may submit comments via the FDIC website at https://www.fdic.gov/federal-register-publications, by email to Comments@fdic.gov (with RIN 3064-AG26 in the subject line), or by mail to Jennifer M. Jones, Deputy Executive Secretary, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. The FDIC will consider all comments received before finalizing the rule.