Federal Reserve Board Announces Proposed Changes to Bank Board Expectations

September 05, 2017

The Board of Governors of the Federal Reserve (FRB) on August 3, 2017 issued a notice inviting comment regarding Proposed Guidance on Supervisory Expectations for Boards of Directors (Proposal). The Proposal applies to boards of bank holding companies, savings and loan holding companies, state member banks, U.S. branches and agencies of foreign banking organizations, and designated systemically important nonbank financial companies (SIFIs). The Proposal, which was the culmination of a multi-year review by the FRB regarding board practices, generally seeks to differentiate the responsibilities between an institution’s board of directors and senior management. The Proposal addresses three areas:

  1. Board effectiveness (BE) guidance that will provide a framework for board assessment.
  2. Rescission and/or revision of existing supervisory expectations placed on boards.
  3. Reduction of board involvement in supervisory communications, including Matters Requiring Immediate Attention (MRIAs) and Matters Requiring Attention (MRAs).

Comments are due by October 10, 2017.

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