EIGHTEEN-MONTH EXAMINATION RULE FOR CERTAIN SMALL INSTITUTIONS.

SEC. 306. EIGHTEEN-MONTH EXAMINATION RULE FOR CERTAIN SMALL INSTITUTIONS. (a) In General.— Section 10(d)(4) of the Federal Deposit Insurance Act (12 U.S.C. 18201 d)(4)) is amended— (1) in subparagraph (A), by striking “$100,000,000” and inserting “$250,000,000”; (2) in subparagraph (C), by striking “and its composite condition was found to be outstanding; and” and inserting “and its composite condition— “(i) was found to be outstanding; or “(ii) was found to be outstanding or good, in the case of an insured depository institution that has total assets of not more than $100,000,000;”; (3) by redesignating subparagraph (D) as subparagraph (E); and (4) by inserting after subparagraph (C) the following new subparagraph: “(D) the insured institution is not currently subject to a formal enforcement proceeding or order by the Corporation or the appropriate Federal banking agency; and”. (b) Agency Discretion To Raise Asset Limit.— Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by adding at the end the following new paragraph: “(8) Agencies authorized to increase maximum asset amount of institutions for certain purposes.— At any time after the end of the 2-year period beginning on the date of enactment of the Riegle Community Development and Regulatory Improvement Act of 1994, the appropriate Federal banking agency, in the agency’s discretion, may increase the maximum amount limitation contained in paragraph (4)(C)(ii), by regulation, from $100,000,000 to an amount not to exceed $175,000,000 for purposes of such paragraph, if the agency determines that the greater amount would be consistent with the principles of safety and soundness for insured depository institutions.”.