What is the Federal Reserve reviewing in its bank oversight?

The Federal Reserve is reviewing all "matters requiring attention" (MRAs) that its examiners had previously flagged for banks to address.

What is the new focus for Federal Reserve bank examinations?

Examinations are now directed to focus primarily on material financial risks at banks, shifting away from process-focused issues.

When will the Federal Reserve resolve clear-cut MRA cases?

The Federal Reserve plans to resolve clear-cut cases by the end of March.

Home / Business and Economy / Fed Overhauls Bank Oversight, Scrutinizes Examiner Flags

Fed Overhauls Bank Oversight, Scrutinizes Examiner Flags

12 Feb

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Summary

Federal Reserve is reviewing all examiner-flagged issues for banks.
The overhaul focuses on material financial risks, not process.
Examiner concerns not meeting new standards may be downgraded.

Fed Overhauls Bank Oversight, Scrutinizes Examiner Flags

The Federal Reserve is implementing a broad review of its oversight practices for financial institutions. This includes a deep dive into all "matters requiring attention" (MRAs), which are directives issued by bank examiners to address potential problems. This review aligns with a larger effort to shift the Fed's supervisory focus towards material financial risks, moving away from what has been described as an overly process-oriented approach.

Under this new standard, existing MRAs are being assessed for specificity and their potential to cause financial harm if unaddressed. MRAs that fail to meet these criteria may be downgraded to "non-binding supervisory observations." The Fed aims to resolve straightforward cases by the end of March, with more complex MRAs targeted for resolution by mid-July.

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