Fed details new supervisory principles 

The Federal Reserve released information regarding new operating principles for bank supervision.  
  
Details: The Fed said the principles, which were provided to all supervisory leadership:  

• Prioritize Fed staff attention on a banking organization’s material financial risks rather than process or documentation issues that are not material to safety and soundness.  

• Reduce duplication resulting from exams and supervision by both Fed staff and by other state or federal banking supervisors.  

• Require Fed staff to prioritize deficiencies that could have a material impact on a firm's financial condition when issuing matters requiring board attention, and prohibit Fed staff from communicating MRAs in vague or overly broad language.  

Outlook: The Fed said it will continue to refine these principles and expects to formalize them in public supervisory guidance or regulatory changes.  

ICBA Advocacy: ICBA last month called on federal banking regulators to reduce regulatory burdens on community banks. ICBA has urged Fed Vice Chair for Supervision Bowman to appropriately tailor regulation, and has provided the Trump Administration with deregulatory recommendations that prioritize practical reforms, reduce unnecessary burdens, and support innovation.