FDIC Board Approves Proposal to Amend Regulations Regarding Lending Limits for Bank Insiders

July 31, 2026 / Source: Federal Deposit Insurance Corporation

WASHINGTON—The Federal Deposit Insurance Corporation (FDIC) Board of Directors today approved a notice of proposed rulemaking that would raise and index thresholds for certain lending limits for executive officers and other insiders of FDIC-supervised institutions. The proposed rule seeks to ensure that the FDIC’s lending thresholds to insiders align with those proposed by the Board of Governors of the Federal Reserve (FRB) under Regulation O of the Federal Reserve Act.

Federal statutes and related regulations govern extensions of credit to executive officers, directors, principal shareholders, and their related interests (collectively, insiders) by FDIC-supervised institutions. The proposed rule would update certain dollar thresholds to reflect inflation and economic growth that has occurred since they were adopted several decades ago. The proposed rule would also streamline the thresholds to simplify compliance and provide for future automatic adjustments to account for changing economic conditions. 

The FDIC’s proposed changes are consistent with those proposed by the FRB. By updating these thresholds to reflect current and future economic conditions and aligning them with the FRB’s Regulation O proposal, the FDIC would standardize compliance and avoid disparate treatment between FDIC-supervised institutions and other insured depository institutions. 

Comments on the attached proposal are due 60 days after the date of publication in the Federal Register.

Attachment(s)

Federal Register Notice – NPR Extensions of Credit to Insiders of FDIC-supervised Institutions (PDF)