United States: Federal agencies update management interlock rules
The U.S. bank regulatory agencies have finalized updates to the management interlock rules.
Previously, the management interlock rules prohibited a management official working at a depository institution or holding company with more than $2.5 billion in total assets from simultaneously working at an unaffiliated depository organization with more than $1.5 billion in total assets.
To account for changes in the market, the final rule increases both thresholds to $10 billion in total assets, as the U.S. bank regulatory agencies previously proposed.
Management officials will generally remain prohibited from serving with multiple depository organizations that are above the new thresholds, limiting the potential risk of anticompetitive conduct at larger institutions.
The final rule will take effect upon publication in the Federal Register.