Revised guidelines for banks to use in appealing material supervisory determinations to the FDIC – which expand the circumstances for appeals and “enhance consistency” with procedures of other federal banking agencies — are outlined in a “Financial Institution Letter” (FIL) from the agency.
The guidelines, adopted by the deposit insurer in July, govern appeals by FDIC-supervised institutions to Division Directors and the Supervision Appeals Review Committee (SARC). The FIL summarizes the key points of the revised appeals process for banks, which include:
- Permitting 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;
- Providing that a formal enforcement-related action or decision does not affect an appeal that is pending under the guidelines;
- Making additional opportunities for appeal available under the guidelines in certain circumstances;
- Providing for the publication of annual reports on FDIC Division Directors’ decisions with respect to material supervisory determinations; and
- Making other limited and conforming amendments.
In issuing the revisions, FDIC also rescinded to previous FILs governing material supervisory determinations: FIL-52-2016, FDIC Seeks Comment on Bank Appeals Guidelines; and FIL-113-2004, FDIC Appeals Processes.
Revised Guidelines for Appeals of Material Supervisory Determinations