FDIC updates risk management, consumer compliance examination policies

Bank Regulatory Federal Issues Agency Rule-Making & Guidance FDIC Compliance Examination Risk Management Supervision

Recently, the FDIC updated Section 2.1 of its Risk Management Manual of Examination Policies related to capital. The FDIC noted that since capital adequacy assessments are central to the supervisory process, examination staff “evaluate all aspects of a financial institution’s risk profile and activities to determine whether its capital levels are appropriate and in compliance with minimum regulatory requirements.” This includes examining a financial institution’s capital ratios, risk-weighted assets, regulatory capital requirements, community bank leverage ratios, capital adequacy (including liquidity, earnings, and market risk), and adherence to laws and regulations. The FDIC also announced updates to the Privacy—Telephone Consumer Protection Act section within its Consumer Compliance Examination Manual (CEM). The CEM includes supervisory policies and examination procedures for FDIC examination staff evaluating financial institutions’ compliance with federal consumer protection laws and regulations.