Federal Reserve Announces Enhanced Bank Supervision Measures
The Federal Reserve Board has unveiled new enhancements to its bank supervision measures. This announcement was made on November 18, 2025, at 9:00 a.m. EST. These changes aim to improve the regulatory framework surrounding financial institutions.
Key Enhancements to Bank Supervision
The new supervisory operating principles have been distributed to all Federal Reserve supervisory leadership and staff. Their main objective is to streamline the examination process by focusing on material financial risks that could threaten the stability of banking institutions.
Importance of the New Supervisory Approach
Vice Chair for Supervision, Michelle W. Bowman, emphasized the importance of sharpening the supervisory focus. “Our supervisory approach is not about narrowing our focus—it is about sharpening it,” she stated. The aim is to build a more effective framework that prioritizes safety and soundness in the financial system.
Objectives of the New Principles
- Align bank examination and ratings with material financial risks.
- Reduce duplication in exams from various supervisors.
- Streamline remediation procedures for issues flagged by examiners.
These enhancements are expected to promote clear accountability and transparency within the supervisory process. In addition, the Federal Reserve is committed to training examiners to facilitate the prompt implementation of these principles.
Next Steps for Implementation
The supervisory leadership will continue to refine the newly introduced principles. There are plans to formalize these changes through public supervisory guidance and potential regulatory updates where necessary.
For media inquiries regarding these changes, contact details are provided: email [email protected] or call 202-452-2955.
