Ombudsman’s report notes banker frustration over lack of communication with FDIC

Challenges faced by the federal bank deposit insurance agency in its supervisory processes and the feedback received from regional ombudsmen and bankers are outlined in the agency ombudsman’s annual report, issued Thursday.

The 2023 report from the Federal Deposit Insurance Corp.’s (FDIC) Office of the Ombudsman “shares common themes of stakeholder feedback and requests for assistance that we received in 2023,” according to the agency.

The report notes both favorable and unfavorable comments received from bankers during 472 feedback sessions held by the office last year. Favorable feedback, the report noted, was received about examiners and the branch application process. Unfavorable feedback included concerns about non-sufficient funds (NSF) re-presentment reviews, risk-focused examinations, and timely communication with bankers, according to the report.

It also notes some outright complaints from bankers during the sessions. “Bankers express frustration over prolonged periods of no communication from the FDIC, leading to distrust and uncertainty,” the report notes.

Along those lines, according to the report:

  • About one-third of stakeholders during meetings said they received no communication about a report of examination or a pending application when the processing timeframes extended beyond published guidelines or reasonable expectations.
  • About one-third of stakeholders disagreed with examination conclusions, ratings, expected corrective actions, or application decisions.

2023 Office of Ombudsman Annual Report of Activities