In a statement to the Financial Stability Oversight Council, the Federal Deposit Insurance Corporation set out a wide-ranging agenda to recalibrate supervision and regulation, with an emphasis on making examinations less process-driven and more focused on core financial risks. The update also summarised parallel workstreams on capital, digital assets, bank resolution and receivership, and steps intended to address unlawful debanking, alongside a series of rescissions and proposals affecting thresholds, mergers, branching, and Community Reinvestment Act policy. Key supervisory changes under way include interagency work to define key terms to add guardrails and improve consistency in supervision, planned reforms to the CAMELS rating system (including changes to component rating definitions), and a proposal to revamp the supervisory appeals process. Operationally, the FDIC is modifying its continuous examination programme by raising the asset threshold from USD 10 billion to USD 30 billion, reducing consumer compliance exam frequency to once every five years (with a midcycle review) for most institutions under USD 3 billion in assets, and generally to once every six years for banks under USD 350 million, subject to specified ratings conditions. Other measures include streamlining Bank Secrecy Act and information technology examinations, allowing termination of enforcement orders upon “substantial compliance”, ending the use of disparate impact in fair lending exams, and reevaluating the consumer compliance complex bank programme. Beyond supervision, the FDIC pointed to a joint proposal to modify the enhanced supplementary leverage ratio, ongoing work on a reproposal to modernize risk-based capital standards, and analysis of potential changes to the community bank leverage ratio, as well as actions on crypto-asset supervision, resolution-planning FAQs for large regional banks, bidder outreach for failed banks, and work on a rulemaking to constrain examiner use of reputational risk and account-closure pressure tied to customers’ political, social, cultural, or religious views. Several initiatives are framed as proposals or works in progress, including interagency rulemakings, the risk-based capital reproposal, implementation work linked to the GENIUS Act and the President’s Working Group recommendations, and ongoing reviews and reevaluations across resolution and debanking-related supervision. The FDIC indicated the supervisory reform list is expected to expand further, including updates to examination manuals, training, and additional tailoring for small institutions.

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