SEC. 2. EXAMINATION RELIEF FOR CERTAIN WELL MAN-
AGED AND WELL CAPITALIZED FINANCIAL IN-
STITUTIONS. 
(a) INSURED DEPOSITORY INSTITUTIONS.—Section 
10(d) of the Federal Deposit Insurance Act (12 U.S.C. 
1820(d)) is amended by adding at the end the following: 
‘‘(11) EXAMINATION
RELIEF
FOR
CERTAIN 
WELL MANAGED AND WELL CAPITALIZED INSURED 
DEPOSITORY INSTITUTIONS.— 
‘‘(A) IN
GENERAL.—The following shall 
apply to a well managed and well capitalized in-
sured 
depository 
institution 
with 
$6,000,000,000 or less in consolidated assets: 
‘‘(i) 
ALTERNATING
LIMITED-SCOPE 
EXAMINATIONS.—After an insured deposi-
tory institution receives a full-scope, on- 
site examination from the appropriate Fed-
eral banking agency, the next examination 
of the insured depository institution by the 
appropriate Federal banking agency shall 
be a limited-scope examination, as deter-
mined by the appropriate Federal banking 
agency. 
‘‘(ii) COMBINED
EXAMINATIONS.—If 
an insured depository institution is other-
wise subject to separate safety and sound-
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ness examinations, consumer compliance 
examinations, and information technology 
and cybersecurity examinations, the appro-
priate Federal banking agency shall, upon 
request of the insured depository institu-
tion, combine two or three such examina-
tions, as specified by the insured deposi-
tory institution, and carry them out at the 
same time. 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply to an insured depository institu-
tion if— 
‘‘(i) the insured depository institution 
is currently subject to a formal enforce-
ment proceeding or order by the Corpora-
tion or the appropriate Federal banking 
agency; or 
‘‘(ii) a person acquired control of the 
insured depository institution since the 
most recent full-scope, on-site examination 
of the insured depository institution from 
the appropriate Federal banking agency. 
‘‘(C) RULEMAKING.—Not later than 12 
months after the date of enactment of this 
paragraph, the Federal banking agencies shall 
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issue rules to carry out subparagraph (A), in-
cluding, with respect to an insured depository 
institution described under subparagraph (A), 
to— 
‘‘(i) establish procedures for the lim-
ited-scope examinations described in sub-
paragraph (A)(i); 
‘‘(ii) establish procedures for review-
ing insured depository institutions that— 
‘‘(I) experience material changes 
in financial condition or operational 
risk profile between scheduled exami-
nations; or 
‘‘(II) have failed to comply with 
Federal or State banking laws and 
regulations; and 
‘‘(iii) balance the goals of streamlining 
the examination cycle for individual in-
sured depository institutions and reducing 
unnecessary 
regulatory 
burdens 
while 
maintaining sufficient oversight to ensure 
the continued safety and soundness of the 
insured depository institutions and compli-
ance with all applicable laws and regula-
tions. 
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‘‘(D) RULE OF CONSTRUCTION.—Nothing 
in this paragraph may be construed to limit the 
authority of a Federal banking agency to con-
duct off-site monitoring, targeted reviews, or 
additional full-scope, on-site examinations of an 
insured depository institution if the Federal 
banking agency determines such monitoring, re-
views, or examinations are necessary to ensure 
safety and soundness or compliance with appli-
cable laws. 
‘‘(E) DEFINITIONS.—In this paragraph: 
‘‘(i) CONSUMER
COMPLIANCE
EXAM-
INATION.—The term ‘consumer compliance 
examination’ means an examination to as-
sess compliance with the requirements of 
Federal consumer financial law (as such 
term is defined in section 1002 of the Con-
sumer Financial Protection Act of 2010). 
‘‘(ii) WELL CAPITALIZED.—The term 
‘well capitalized’ has the meaning given 
that term in section 38(b). 
‘‘(iii) WELL MANAGED.—With respect 
to an insured depository institution, the 
term ‘well managed’ means that, when the 
institution was most recently examined by 
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the appropriate Federal banking agency, 
the institution was found to be well man-
aged, and the institution’s composite condi-
tion was found to be satisfactory or out-
standing.’’. 
(b) INSURED CREDIT UNIONS.—Section 204 of the 
Federal Credit Union Act (12 U.S.C. 1784) is amended 
by adding at the end the following: 
‘‘(h) EXAMINATION RELIEF
FOR CERTAIN WELL 
MANAGED
AND WELL CAPITALIZED INSURED CREDIT 
UNIONS.— 
‘‘(1) IN GENERAL.—The following shall apply to 
a well managed and well capitalized insured credit 
union with $6,000,000,000 or less in consolidated 
assets: 
‘‘(A) ALTERNATING
LIMITED-SCOPE
EX-
AMINATIONS.—After an insured credit union re-
ceives a full-scope, on-site examination from the 
National Credit Union Administration, the next 
examination of the insured credit union by the 
National Credit Union Administration shall be 
a limited-scope examination, as determined by 
the National Credit Union Administration. 
‘‘(B) COMBINED
EXAMINATIONS.—If an 
insured credit union is otherwise subject to sep-
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arate safety and soundness examinations, con-
sumer compliance examinations, and informa-
tion technology and cybersecurity examinations, 
the National Credit Union Administration shall, 
upon request of the insured credit union, com-
bine two or three such examinations, as speci-
fied by the insured credit union, and carry them 
out at the same time. 
‘‘(2) EXCEPTION.—Paragraph (1) shall not 
apply to an insured credit union if the insured credit 
union is currently subject to a formal enforcement 
proceeding or order by the National Credit Union 
Administration. 
‘‘(3) RULEMAKING.—Not later than 12 months 
after the date of enactment of this subsection, the 
National Credit Union Administration shall issue 
rules to carry out paragraph (1), including, with re-
spect to an insured credit union described under 
paragraph (1), to— 
‘‘(A) establish procedures for the limited- 
scope examinations described in paragraph 
(1)(A); 
‘‘(B) establish procedures for reviewing in-
sured credit unions that— 
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‘‘(i) experience material changes in fi-
nancial condition or operational risk profile 
between scheduled examinations; or 
‘‘(ii) have failed to comply with Fed-
eral or State banking laws and regulations; 
and 
‘‘(C) balance the goals of streamlining the 
examination cycle for individual insured credit 
unions and reducing unnecessary regulatory 
burdens while maintaining sufficient oversight 
to ensure the continued safety and soundness of 
the insured credit unions and compliance with 
all applicable laws and regulations. 
‘‘(4) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection may be construed to limit the author-
ity of the National Credit Union Administration to 
conduct off-site monitoring, targeted reviews, or ad-
ditional full-scope, on-site examinations of an in-
sured credit union if the National Credit Union Ad-
ministration determines such monitoring, reviews, or 
examinations are necessary to ensure safety and 
soundness or compliance with applicable laws. 
‘‘(5) DEFINITIONS.—In this paragraph: 
‘‘(A) CONSUMER
COMPLIANCE
EXAMINA-
TION.—The term ‘consumer compliance exam-
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ination’ means an examination to assess compli-
ance with the requirements of Federal con-
sumer financial law (as such term is defined in 
section 1002 of the Consumer Financial Protec-
tion Act of 2010). 
‘‘(B) WELL CAPITALIZED.—The term ‘well 
capitalized’ has the meaning given that term in 
section 216(c). 
‘‘(C) WELL
MANAGED.—With respect to 
an insured credit union, the term ‘well man-
aged’ means that, when the credit union was 
most recently examined by the National Credit 
Union Administration, the credit union was 
found to be well managed, and the credit 
union’s composite condition was found to be 
satisfactory or outstanding.’’. 
Æ 
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