WASHINGTON—The Federal Reserve Board has announced that two separate reviews are underway at the Federal Reserve System to ensure that the examinations of large banking organizations are “consistent, sound, and supported by all relevant information.”
The agency’s Inspector General is examining two aspects of the Federal Reserve System's examination program for large banking organizations:
- Whether there are adequate methods for decision-makers at the relevant Reserve Banks and at the Board to obtain all necessary information to make supervisory assessments and determinations.
- Whether channels exist for decision-makers to be aware of divergent views among an examination team regarding material issues.
The Board said it is also conducting its own review of the supervision of the largest, most systemically important financial institutions in the U.S., with that reviewed to focus on whether the decision-makers at the Board receive the information needed to ensure consistent and sound supervisory decisions regarding the supervision of the largest, most complex banking organizations, and whether adequate methods are in place for those decision-makers to be aware of material matters that required reconciliation of divergent views related to supervision of those firms.