---
kind: "section"
citation: "12 C.F.R. § 337.12"
title: "12"
number: "337.12"
heading: "Frequency of examination."
url: "https://uscodex.org/cfr/12/337.12"
---

# §337.12. Frequency of examination.

- (a) **General.** The Federal Deposit Insurance Corporation examines insured state nonmember banks pursuant to authority conferred by section 10 of the Federal Deposit Insurance Act ([12 U.S.C. 1820](/usc/12/1820.md)) and examines insured State savings associations pursuant to authority conferred by section 10 of the Federal Deposit Insurance Act ([12 U.S.C. 1820](/usc/12/1820.md)) and section 4 of the Home Owners' Loan Act ([12 U.S.C. 1463](/usc/12/1463.md)). The FDIC is required to conduct a full-scope, on-site examination of every insured state nonmember bank and insured State savings association at least once during each 12-month period.
- (b) **18-month rule for certain small institutions.** The FDIC may conduct a full-scope, on-site examination of an insured state nonmember bank or insured State savings association 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 institution has total assets of less than $3 billion;
  - (2) The institution is well capitalized as defined in [§ 324.403(b)(1)](/cfr/12/324.403.md?p=b-1) of this chapter;
  - (3) **At the most recent FDIC or applicable State agency examination, the FDIC—**
    - (i) Assigned the institution a rating of 1 or 2 for management as part of the institution's composite rating under the Uniform Financial Institutions Rating System (commonly referred to as CAMELS); and
    - (ii) Assigned the institution a composite rating of 1 or 2 under the Uniform Financial Institutions Rating System (copies of which are available at the addresses specified in [§ 309.4](/cfr/12/309.4.md) of this chapter);
  - (4) The institution currently is not subject to a formal enforcement proceeding or order by the FDIC, OCC, or the Board of Governors of the Federal Reserve System; and
  - (5) No person acquired control of the institution during the preceding 12-month period in which a full-scope, on-site examination would have been required but for this section.
- (c) **Authority to conduct more frequent examinations.** This section does not limit the authority of the FDIC to examine any insured state nonmember bank or insured State savings association as frequently as the agency deems necessary.
- (d) 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 an institution shall be determined based on the lesser of:
  - (1) The assets of the institution as of December 31, 2019; and
  - (2) **The assets of the institution as of the end of the most recent calendar quarter.**

## Notes

### Amendments

[81 FR 10069, Feb. 29, 2016, as amended at 83 FR 43965, Aug. 29, 2018; 85 FR 77364, Dec. 2, 2020]

### Authority

Authority: 12 U.S.C. 375a(4), 375b, 1463, 1464, 1468, 1816, 1818(a), 1818(b), 1819, 1820(d), 1821(f), 1828(j)(2), 1831, 1831f, 1831g, 5412.

### Source

Source: 39 FR 29179, Aug. 14, 1974, unless otherwise noted.

### Amendments

[81 FR 10069, Feb. 29, 2016, as amended at 83 FR 43965, Aug. 29, 2018; 85 FR 77364, Dec. 2, 2020]