On October 3, 2023, the Federal Deposit Insurance Corporation (“FDIC”) proposed standards for corporate governance and risk management for the institutions it regulates that have $10 billion or more in total assets. The proposed standards would establish extensive and rigid requirements for a wide range of state-chartered banks and reverse decades of reliance on state law for establishing governance and oversight obligations.
Affected banks should consider engaging during the comment period, which will end 60 days after the proposed standards are published in the Federal Register (expected imminently). In this Legal Update, we discuss the proposed standards, the questions they raise, and the expected challenges.