---
kind: "section"
citation: "12 C.F.R. § 208.64"
title: "12"
number: "208.64"
heading: "Frequency of examination."
url: "https://uscodex.org/cfr/12/208.64"
---

# §208.64. Frequency of examination.

- (a) **General.** The Federal Reserve examines insured member banks pursuant to authority conferred by [12 U.S.C. 325](/usc/12/325.md) and the requirements of [12 U.S.C. 1820(d)](/usc/12/1820.md?p=d). The Federal Reserve is required to conduct a full-scope, on-site examination of every insured member bank at least once during each 12-month period.
- (b) **18-month rule for certain small institutions.** The Federal Reserve may conduct a full-scope, on-site examination of an insured member bank at least once during each 18-month period, rather than each 12-month period as provided in [paragraph (a)](#a) of this section, if the following conditions are satisfied:
  - (1) The bank has total assets of less than $3 billion;
  - (2) The bank is well capitalized as defined in [subpart D](/cfr/12/subpartD.md) of this part ([§ 208.43](/cfr/12/208.43.md));
  - (3) At the most recent examination conducted by either the Federal Reserve or applicable State banking agency, the Federal Reserve—
    - (i) Assigned the bank a rating of 1 or 2 for management as part of the bank's rating under the Uniform Financial Institutions Rating System (commonly referred to as CAMELS); and
    - (ii) Assigned the bank a composite CAMELS rating of 1 or 2 under the Uniform Financial Institutions Rating System;
  - (4) The bank currently is not subject to a formal enforcement proceeding or order by the Federal Reserve or the FDIC; and
  - (5) No person acquired control of the bank during the preceding 12-month period in which a full-scope examination would have been required but for this [paragraph (b)](#b).
- (c) **Authority to conduct more frequent examinations.** This section does not limit the authority of the Federal Reserve to examine any member bank as frequently as the agency deems necessary.
- (d)
  - (1) Except as provided in [paragraph (c)](#c) of this section, from December 2, 2020, through December 31, 2021, for purposes of determining eligibility for the extended examination cycle described in [paragraph (b)](#b) of this section, the total assets of a member bank shall be determined based on the lesser of:
    - (i) The assets of the member bank as of December 31, 2019; and
    - (ii) **The assets of the member bank as of the end of the most recent calendar quarter.**
  - (2) Nothing in [paragraph (d)(1)](#d-1) of this section limits the authority of the Federal Reserve to examine any member bank as frequently as the agency deems necessary pursuant to [paragraph (c)](#c) of this section.

## Notes

### Amendments

[63 FR 37655, July 13, 1998, as amended at 72 FR 17802, Apr. 10, 2007; 81 FR 10069, Feb. 29, 2016; 83 FR 43965, Aug. 29, 2018; 85 FR 77360, Dec. 2, 2020]

### Source

Source: 63 FR 37655, July 13, 1998, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321-338a, 371d, 461, 481-486, 601, 611, 1814, 1816, 1817(a)(3), 1817(a)(12), 1818, 1820(d)(9), 1833(j), 1828(o), 1831, 1831o, 1831p-1, 1831r-1, 1831w, 1831x, 1835a, 1882, 2901-2907, 3105, 3310, 3331-3351, 3905-3909, 5371, and 5371 note; 15 U.S.C. 78b, 78I(b), 78 l (i), 780-4(c)(5), 78q, 78q-1, 78w, 1681s, 1681w, 6801, and 6805; 31 U.S.C. 5318; 42 U.S.C. 4012a, 4104a, 4104b, 4106, and 4128.

### Source

Source: Reg. H, 17 FR 8006, Sept. 4, 1952, unless otherwise noted.

### Amendments

[63 FR 37655, July 13, 1998, as amended at 72 FR 17802, Apr. 10, 2007; 81 FR 10069, Feb. 29, 2016; 83 FR 43965, Aug. 29, 2018; 85 FR 77360, Dec. 2, 2020]