Supervisory Modifications for Appropriate Risk-based Testing Act of 2025

This bill would require federal regulators to conduct limited-scope examinations for well-capitalized and well-managed depository institutions and credit unions with $6 billion or less in assets during the year following a full-scope examination. It would also allow these institutions to request that separate compliance reviews, such as safety and soundness or information technology examinations, be conducted simultaneously. These changes would not apply to recently acquired institutions or those currently subject to certain formal enforcement actions.

This bill affects depository institutions and credit unions with $6 billion or less in assets that are classified as well-capitalized and well-managed. Federal financial regulators are also affected, as they must conduct limited-scope examinations and coordinate concurrent compliance reviews for these qualifying institutions. The bill excludes institutions that were recently acquired or are currently subject to certain formal enforcement proceedings or orders.

• Limited-scope examinations for small financial institutions. Requires federal regulators to conduct limited-scope examinations for well-capitalized and well-managed depository institutions and credit unions with $6 billion or less in assets during the year following a full-scope examination.
• Consolidation of oversight procedures. Directs federal regulators to combine separate compliance reviews, such as safety and soundness and information technology examinations, into a single timeframe upon the request of a qualifying institution.
• Exceptions for specific institutional conditions. Excludes recently acquired institutions and those subject to formal enforcement proceedings or orders from the modified examination requirements.

The bill modifies existing federal oversight procedures by limiting the scope of examinations for certain well-capitalized and well-managed depository institutions and credit unions with assets of $6 billion or less. It also allows these institutions to request the consolidation of separate regulatory compliance examinations, such as safety and soundness and information technology reviews, into a single timeframe.

The bill aims to streamline regulatory oversight for small, well-capitalized, and well-managed depository institutions and credit unions by limiting the scope of certain examinations and allowing for the consolidation of multiple compliance procedures into a single timeframe.