After a recent external IT exam, one of the examiners suggested that we change the time that must elapse with no activity before a SAVINGS account become dormant from 3 years to 2 years. Does anybody know what the industry standard is?

It's regulated by state law, usually. I always thought the 'industry standard' was one year - at least it's been that way in the two states I've worked in!

State laws define dormant accounts for escheat purposes. Don't confuse "inactive" that are internally classified as "dormant", as they are too very distinct conditions. You can have an "inactive" account on the books for years and never have the state defined clock start ticking. Normally, I have seen accounts classified as "inactive" after a 6 month to 1 year period.

And the terminology is not necessarily standard either. Texas, as an example uses the term "inactive" instead of "dormant" in the State code.