Joint Release/Agencies Propose to Update Management Interlock Rules — 2018-12-20

The federal banking agencies on Thursday invited public comment on a proposal to update rules restricting the ability of a director or other management official to serve at more than one depository institution or depository holding company. The proposed changes would provide relief for community banks and better align with other rules. The current management interlock rules prohibit a director or other management official working at a depository organization (a term defined by regulation to mean either a depository institution or a depository holding company) with more than $2.5 billion in total assets from serving at the same time at an unaffiliated depository organization with more than $1.5 billion in total assets. The current thresholds were established by statutory amendment in 1996. The proposal seeks comment on raising both thresholds to $10 billion in total assets, given the consolidation and growth in the industry over the past 20 years.