McWilliams touts "continuous engagement" oversight approach

More regular and informal meetings between banks and regulators to discuss operations and emerging risks could reduce the need for cumbersome quarterly reporting, FDIC Chairman Jelena McWilliams said.

Speaking at a Fed conference on bank supervision, McWilliams said this "continuous engagement"—which the FDIC is exploring through its FDiTech initiative—wouldn't mean real-time monitoring of community banks, which would be a waste of FDIC resources.

Rather, informal engagements that use technology to provide a dashboard of an institution's financial health could be a substitute for the call report and dramatically reduce the burdens of on-site exams, helping community banks into the future, she said.