H.R. 5076 would amend the Federal Deposit Insurance Act to increase the maximum size of certain financial institutions that are eligible to have on-site bank examinations once every 18 months instead of once every 12 months.
Current information about bank assets indicates that 600 to 700 institutions could qualify for the change in frequency of examinations under H.R. 5076. Using information from the federal banking regulators, CBO expects that bank examiners who now conduct examinations on-site would instead generally examine the affected banks remotely, as would be permitted by the bill. In addition, CBO expects that enacting H.R. 5076 would not affect future costs to resolve failed financial institutions because federal regulators would continue to exercise oversight of the institutions and could impose more frequent examinations of any institution for which they deemed more oversight to be necessary. As a result, CBO estimates that the net budgetary effects of enacting H.R. 5076 would be insignificant.
Enacting H.R. 5076 could affect direct spending by federal agencies that regulate financial institutions; therefore, pay-as-you-go procedures apply. However, CBO estimates that the net effect on direct spending would be insignificant for each year. Enacting the bill would not affect revenues.
CBO estimates that enacting H.R. 5076 would not significantly increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028.
H.R. 5076 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.
