Proposed changes to guidelines for appeals of material supervisory determinations (MSDs), and alterations to mandated audits for banks with $500 million or more in assets, are among the actions on the discussion agenda for the board of the federal bank deposit insurance agency when it meets July 15, the agency said Wednesday.
Under the Federal Deposit Insurance Corp.’s (FDIC) MSD guidelines, banks are putatively ensured a means to challenge potentially impactful supervisory actions. The guidelines typically apply to MSDs made by examiners during supervision.
MSDs may include such items as CAMELS exam ratings, adequacy of loan-loss reserves, loan classifications and initiation of informal enforcement actions (including memoranda of understanding).
Mandated audits for banks of $500 million or more (under Part 363 of agency rules), requires the audit to be made by an independent public accountant. The rules also require that banks file and annual report with FDIC (and state regulator where applicable). Management must also establish and maintain an adequate internal control structure over financial reporting comply with designated safety and soundness laws and regulations.
Meanwhile, the board will consider a number of items on the so-called “summary agenda,” meaning no substantive discussion is expected. Those items include:
- Proposed rule regarding Community Reinvestment Act (CRA) regulations;
- Proposed rule on establishment and relocation of branches and offices;
- Withdrawal of a proposed rule regarding parent companies of industrial banks and industrial loan companies (ILCs).
The meeting is scheduled for 10 a.m. at FDIC headquarters in Washington, D.C.
July 15, 2025 — Sunshine Act Meeting Notice
Leave a Reply