A revised consumer compliance examination manual provides for less-frequent consumer compliance exams for most supervised banks, the Federal Deposit Insurance Corp. (FDIC) said in a Financial Institution Letter (FIL) Friday.
The agency said its updated manual also establishes a new compliance mid-point risk analysis for certain institutions.
In its FIL-52-2025, the FDIC said Section II-12.1 of the manual has been revised to place institutions “generally” on an examination cycle of 66-78 months, 54-66 months, or 24-36 months, depending on their asset size.
“Examination cycles are based on the date of the last joint Consumer Compliance examination/Community Reinvestment Act (CRA) evaluation,” the agency said in releasing the manual updates. “For institutions on an examination cycle of 66-78 months or 54-66 months, with no targeted Consumer Compliance examination or CRA evaluation, examiners will conduct a mid-point risk analysis of the institution and determine if an intervening supervisory activity, such as a targeted visitation, is needed. Adversely rated institutions (institutions not rated a ‘1’ or ‘2’ for Consumer Compliance and ‘Outstanding’ or ‘Satisfactory’ or CRA) will encounter more frequent supervisory activities (examination, evaluation, or visitation).”
The FDIC release includes a link to a “redlined” version of the revised manual.
Leave a Reply