In testimony to the United States House of Representatives Committee on Financial Services, Acting Chairman Travis Hill set out the Federal Deposit Insurance Corporation’s recent and planned changes to supervision, rulemaking and resolution operations aimed at shifting examiner focus toward material financial risks and streamlining supervisory processes. Key supervision measures described include a joint proposed rule with the Office of the Comptroller of the Currency to define “unsafe or unsound practice” for enforcement purposes and to set uniform standards for matters requiring attention and non-binding supervisory observations, plus a proposal to create an independent Office of Supervisory Appeals for material supervisory determinations. The FDIC also reported work with the Federal Financial Institutions Examination Council to refocus CAMELS definitions on core financial risks, streamlining of examinations and documentation, and an increase in the presumptive threshold for continuous examination from USD 10 billion to USD 30 billion in assets, with a hybrid approach for banks between USD 10 billion and USD 30 billion. For consumer compliance and Community Reinvestment Act oversight, exam frequency is being reduced for most institutions under USD 3 billion in assets that meet specified ratings, and enforcement order termination standards were revised to allow termination upon “substantial compliance.” Beyond supervision, the testimony highlighted interagency capital actions (a final rule modifying the enhanced supplementary leverage ratio for U.S. global systemically important bank holding companies and an NPR to lower the community bank leverage ratio to 8 percent and extend the grace period), resolution planning changes implemented via FAQs for the current cycle (including exemptions from bridge bank strategy and hypothetical failure scenario requirements), steps to modernize failed-bank marketing and enable greater nonbank participation, and a final rule raising and indexing more than 20 FDIC-only regulatory thresholds, including in Part 363. Next steps flagged include finalizing guidelines to establish the Office of Supervisory Appeals “in the near future,” issuing a final rule on expedited branch processing later in December 2025, and advancing stablecoin implementation under the Guiding and Establishing National Innovation for U.S. Stablecoins Act, with a proposed application framework expected later in December 2025 and proposed prudential standards for FDIC-supervised payment stablecoin issuers expected in early 2026. The FDIC also plans to pilot a pre-qualification process for nonbank bidders in failed-bank auctions in early 2026 and expects to finalize its proposed revisions to FDIC digital signage requirements in early 2026.
Federal Deposit Insurance Corporation 2025-12-02
Federal Deposit Insurance Corporation outlines supervision reforms including a USD 30 billion continuous examination threshold and planned stablecoin rulemakings
In testimony to the U.S. House Committee on Financial Services, Acting Chairman Travis Hill detailed the FDIC's supervisory changes, including a joint rule with the Office of the Comptroller of the Currency to define “unsafe or unsound practice” and creating an independent Office of Supervisory Appeals. The FDIC plans to finalize guidelines for this office, issue a final rule on expedited branch processing, and advance stablecoin implementation under the Guiding and Establishing National Innovation for U.S. Stablecoins Act by early 2026.