In a statement to the Financial Stability Oversight Council, Federal Deposit Insurance Corporation Acting Chairman Travis Hill set out the agency’s recent actions to change supervisory and regulatory practices and strengthen resolution readiness, and outlined additional reforms planned for the coming months. Recent steps include two joint notices of proposed rulemaking (NPRs) with the Office of the Comptroller of the Currency to define “unsafe or unsound practice” and “matters requiring attention” and create a new framework for nonbinding supervisory observations, and to bar examiners from basing criticism or adverse action on reputational risk or pressuring banks to close accounts based on customers’ political, social, cultural, or religious views or beliefs. The FDIC also rescinded climate-related financial risk guidance, finalized a rule raising and indexing 37 asset-based regulatory thresholds largely tied to audit, internal control, and reporting requirements, and joined the Office of the Comptroller of the Currency and the Federal Reserve in proposing changes to expand eligibility for the Community Bank Leverage Ratio and finalizing modifications to the enhanced supplementary leverage ratio so it more frequently acts as a backstop to risk-based capital standards. Operational initiatives cited include a pilot to broaden nonbank participation in failed-bank bidding, a revised consumer compliance examination cycle for most small banks, reviews of potential debanking linked to the President’s executive order, and withdrawal from the 2013 interagency leveraged lending guidance in favor of general safe-and-sound lending principles. Planned workstreams include further supervision reforms such as CAMELS reform and examination manual updates, implementation of the GENIUS Act, a reproposal of the 2017 Basel agreement, and an interagency proposal to reform the Bank Secrecy Act program rule. The nonbank bidder pre-qualification pilot is expected to begin in January 2026, with public release of the qualification process and application anticipated after feedback is received.
Federal Deposit Insurance Corporation 2025-12-11
Federal Deposit Insurance Corporation updates FSOC on supervision reforms and resolution initiatives including joint NPRs and capital rule changes
FDIC Acting Chairman Travis Hill detailed recent regulatory actions and future reforms to the Financial Stability Oversight Council. Key initiatives include joint rulemaking with the Office of the Comptroller of the Currency, rescinding climate-related guidance, and revising leverage ratio standards. Planned reforms involve CAMELS reform, Basel agreement reproposal, and Bank Secrecy Act program rule changes.