HOLDING COMPANY AUDIT REQUIREMENTS.

SEC. 314. HOLDING COMPANY AUDIT REQUIREMENTS. (a) In General.— Section 36(0 of the Federal Deposit Insurance Act (12 U.S.C. 1831m(i)) is amended— (1) by redesignating paragraph (1) as subparagraph (A) and indenting appropriately; (2) by striking “Except with respect” and inserting the following: “(1) In general.— Except with respect”; and (3) by striking paragraph (2) and inserting the following: “(B) the institution— “(i) has total assets, as of the beginning of such fiscal year, of less than $5,000,000,000; or “(ii) has— 108 STAT. 2222 “(I) total assets, as of the beginning of such fiscal year, of $5,000,000,000, or more; and “(II) a CAMEL composite rating of 1 or 2 under the Uniform Financial Institutions Rating System (or an equivalent rating by any such agency under a comparable rating system) as of the most recent examination of such institution by the Corporation or the appropriate Federal banking agency. “(2) Large institutions.— For purposes of this subsection, in the case of an insured depository institution described in paragraph (1)(B)(ii) that the Corporation determines to be a large institution, the audit committee of the holding company of such an institution shall not include any large customers of the institution. “(3) Applicability based on risk to fund.— The appropriate Federal banking agency may require an institution with total assets in excess of $9,000,000,000 to comply with this section, notwithstanding the exemption provided by this subsection, if it determines that such exemption would create a significant risk to the affected deposit insurance fund if applied to that institution.”. (b) Written Notice of Requirement for Audit of Quarterly Reports.— Section 36(g)(2) of the Federal Deposit Insurance Act (12 U.S.C. 183im(g)(2)) is amended by adding at the end the following new subparagraph: “(D) Notice to institution.— The Corporation shall promptly notify an insured depository institution, in writing, of a determination pursuant to subparagraph (A) to require a review of such institution’s quarterly financial reports.”.