IG: FDIC human capital challenges affecting exams

The FDIC Office of the Inspector General said strategic human capital management is the FDIC’s top challenge and is affecting the agency’s ability to conduct exams.

Details: In a new report, the OIG said:

• The FDIC faces challenges with staff attrition, managing a wave of prospective retirements, and addressing discrimination and harassment.

• The agency had cumulative net employee losses between January 2018 and January 2023, including a net loss of nearly 9% at its Division of Risk Management Supervision and 14% at its Division of Depositor and Consumer Protection.

• Turnover rates for new examiners are higher than those for new employees across the FDIC.

• There was frequent turnover in the FDIC’s New York Regional Office exam staff leading up to the failure of Signature Bank of New York, with temporary personnel added to the Signature Bank exam team often lacking requisite experience with large banks.