A new office to consider supervisory appeals, which would be independent with final authority in resolving appeals, would be established under a proposal issued Friday by the federal insurer of bank deposits.
Under the proposal by the Federal Deposit Insurance Corp. (FDIC) Board – which announced its action late Friday – the supervision appeals review committee within the agency would be replaced with a new office that the FDIC called “an independent, standalone Office of Supervisory Appeals.”
To underpin the independence of the office, the FDIC said, it intends to staff it by recruiting outside of the agency for individuals with bank supervisory or examination experience.
The changes being proposed to the supervisory review process, the agency said, are based on outreach sessions its ombudsman held with bankers and other interested parties about a year ago. According to the FDIC, creating the proposed office “would promote independence and help alleviate perceived conflicts of interest, among other important goals.”
According to FDIC Board Chairman Jelena McWilliams, the proposed new office would establish a fair, independent process for a bank to appeal material supervisory decisions. “Such an appeals process is key to promoting consistency among examiners across the country, ensuring accountability at the agency, and ultimately, maintaining stability and public confidence in the nation’s financial system,” McWilliams said.
Comments on the proposal are due Oct. 20.