The American Bankers Association (ABA) has expressed approval of the Federal Deposit Insurance Corporation's (FDIC) recent decision to index supervisory asset thresholds. The ABA believes this move is a necessary step toward a more modern and rational regulatory framework for banks.
"For many years, ABA has argued that arbitrary asset thresholds impose unintended constraints and costs on banks while making it harder for regulators to focus on the largest sources of risk—effects that are compounded when thresholds remain static over years and even decades," said the ABA.
The association emphasized the importance of ensuring that the chosen measure reflects changes in the banking sector and economic growth. "We look forward to reviewing the proposal’s use of CPI and intend to explore alternatives such as nominal GDP or total bank assets," they added.
The ABA hopes this action by the FDIC will lead other regulatory agencies to join the effort and encourages Congress to consider legislative solutions. Additionally, they appreciate the FDIC's efforts to examine supervisory appeals frameworks, aiming for a more independent and credible process.
"In consultation with our members, we will continue to review the other actions taken by the FDIC board today, including the proposal to rescind the 2023 CRA rule and return to a legal CRA rule that does not exceed congressional authority," said the ABA. They plan to provide input as necessary.
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