Federal banking regulators are charged with safeguarding the financial stability of the federally insured banking system.
In this regard, Section 36 of the Federal Deposit Insurance Act (FDI Act) and the Federal Deposit Insurance Corporation’s (FDIC’s) implementing regulations (Part 363) are generally intended to facilitate early identification of problems in financial management at insured depository institutions (IDIs) with total assets above certain thresholds.
Currently, Part 363 requires an IDI with consolidated total assets of $500 million or more as of the beginning of its fiscal year to have an annual audit of its financial statements performed by an independent public accountant, and requires an IDI with consolidated total assets of $1 billion or more as of the beginning…
