Section 208.64 - Frequency of examination(a)General. The Federal Reserve examines insured member banks pursuant to authority conferred by 12 U.S.C. 325 and the requirements of 12 U.S.C. 1820(d) . The Federal Reserve is required to conduct a full-scope, on-site examination of every insured member bank at least once during each 12-month period.(b)18-month rule for certain small institutions. The Federal Reserve may conduct a full-scope, on-site examination of an insured member bank at least once during each 18-month period, rather than each 12-month period as provided in paragraph (a) of this section, if the following conditions are satisfied: (1) The bank has total assets of less than $3 billion;(2) The bank is well capitalized as defined in subpart D of this part (§ 208.43 ) ;(3) At the most recent examination conducted by either the Federal Reserve or applicable State banking agency, the Federal Reserve-(i) Assigned the bank a rating of 1 or 2 for management as part of the bank's rating under the Uniform Financial Institutions Rating System (commonly referred to as CAMELS); and(ii) Assigned the bank a composite CAMELS rating of 1 or 2 under the Uniform Financial Institutions Rating System;(4) The bank currently is not subject to a formal enforcement proceeding or order by the Federal Reserve or the FDIC; and(5) No person acquired control of the bank during the preceding 12-month period in which a full-scope examination would have been required but for this paragraph (b).(c)Authority to conduct more frequent examinations. This section does not limit the authority of the Federal Reserve to examine any member bank as frequently as the agency deems necessary.(d)(1) Except as provided in paragraph (c) of this section, from December 2, 2020, through December 31, 2021, for purposes of determining eligibility for the extended examination cycle described in paragraph (b) of this section, the total assets of a member bank shall be determined based on the lesser of:(i) The assets of the member bank as of December 31, 2019; and(ii) The assets of the member bank as of the end of the most recent calendar quarter.(2) Nothing in paragraph (d)(1) of this section limits the authority of the Federal Reserve to examine any member bank as frequently as the agency deems necessary pursuant to paragraph (c) of this section.63 FR 37655, July 13, 1998, as amended at 72 FR 17802 , Apr. 10, 2007; 81 FR 10069 , Feb. 29, 2016; 83 FR 43965 , Aug. 29, 2018; 85 FR 77360 , Dec. 2, 2020 81 FR 10069 , 2/29/2016; 83 FR 43965 , 8/29/2018; 85 FR 77360 , 12/2/2020