The FDIC announced that its standalone Office of Supervisory Appeals—which will serve as the final level of review of material supervisory determinations made by the FDIC—is now operational.
Background: The agency in January approved revised Guidelines for Appeals of Material Supervisory Determinations that established the independent, standalone Office of Supervisory Appeals to replace the Supervision Appeals Review Committee.
Details: The FDIC said the office:
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Is independent of the divisions that make supervisory determinations.
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Is staffed by reviewing officials who have direct experience with the supervisory process, and may include former government officials, former bankers, and other former industry professionals.
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Will make independent supervisory determinations without deferring to the judgments of either party.
ICBA View: ICBA last fall said it preferred a Federal Financial Institutions Examination Council appeals office but supported the proposed enhancements to the FDIC’s internal supervisory appeals process. ICBA also said the FDIC should ensure that reviewers have significant community banking experience.
OCC Proposal: The OCC in February proposed establishing revised procedures and policies for appeals by OCC-supervised entities of material supervisory determinations. ICBA and other groups in April said the OCC’s proposed changes to its framework for banks’ appeals of supervisory decisions would restore confidence, bolster accountability, and improve transparency in the appeals process.
Pending Legislation: ICBA also supports the FAIR Exams Act (H.R. 940), which would create an Office of Independent Examination Review within the FFIEC and give financial institutions a right to an expedited, independent review of adverse-examination determinations.