The US Federal Deposit Insurance Corporation (FDIC) Acting Chairman Travis Hill used a Financial Stability Oversight Council meeting statement to outline progress on a broad supervisory and regulatory reform agenda since the Council’s September meeting, spanning new interagency rulemakings, withdrawals of prior guidance, and operational changes to examinations and resolution readiness. Key steps cited include two joint notices of proposed rulemaking (NPRs) with the Office of the Comptroller of the Currency (OCC), one to define “unsafe or unsound practice” for Federal Deposit Insurance Act Section 8 purposes and to define matters requiring attention (MRAs) while creating a framework for issuing nonbinding supervisory observations, and another to prohibit examiner criticism or adverse action based on reputational risk and to restrict examiner efforts to encourage account closures or other actions based on a customer’s political, social, cultural, or religious views or beliefs. The FDIC also pointed to rescinding climate-related financial risk guidance, finalizing a rule that raises and indexes 37 asset-based thresholds affecting audit, internal control, and related reporting requirements, proposing (with the OCC and Federal Reserve) revisions to the Community Bank Leverage Ratio (CBLR), and finalizing (with the OCC and Federal Reserve) changes to the enhanced supplementary leverage ratio. Operational initiatives included a revised consumer compliance examination cycle for most small banks and work to expand nonbank participation in failed-bank bidding, alongside reviews of potential debanking in response to a presidential executive order and withdrawal from the 2013 interagency leveraged lending guidance in favor of general safe and sound lending principles. Looking ahead, the agenda described includes additional supervision reforms such as CAMELS changes 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.
Federal Deposit Insurance Corporation 2025-12-11
US Federal Deposit Insurance Corporation updates FSOC on supervisory reforms including MRAs and reputational risk proposals and a reduced small bank compliance exam cycle
FDIC Acting Chairman Travis Hill detailed progress on reforms, including joint proposals with the OCC to define "unsafe or unsound practice" and prohibit examiner actions based on reputational risk. The FDIC rescinded climate-related guidance, finalized asset-based threshold rules, and proposed revisions to the Community Bank Leverage Ratio, with plans for further supervision reforms and examination manual updates.