FDIC revises guidelines to expand bank appeals, improve consistency
by July 18, 2017 3:58 pm 166 views
The Federal Deposit Insurance Corp. (FDIC) has expanded the circumstances in which banks can appeal a material supervisory determination and improved consistency with the appeals process of other federal banking agencies, according to a news release. A material supervisory determination includes determinations related to examination ratings, the adequacy of loan loss reserve provisions and classifications on loans that are significant to an institution.
The changes to the FDIC’s guidelines went into effect July 18 and allow “the appeal of the level of compliance with an existing formal enforcement action, the decision to initiate an informal enforcement action and matters requiring board attention,” according to the guidelines.
The following are the other changes to the guidelines: “A formal enforcement-related action or decision does not affect an appeal that is pending under the guidelines; make additional opportunities for appeal available under the guidelines in certain circumstances; provide for the publication of annual reports of division directors’ decisions with respect to material supervisory determinations; and make other limited technical and conforming amendments.”
In July 2016, the FDIC asked for comments on the proposed changes. “The revised guidelines would adopt the amendments as proposed in July, and include additional amendments based on feedback received from commenters,” the release shows.