The Bank Slate

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FDIC drops banker-supported appeals process

The Federal Deposit Insurance Corp. has eliminated a short-lived appeals process that had the backing of bankers. 


The Office of Supervisory Appeals, formed before President Biden took office, had become fully staffed on Dec. 6. The standalone office was intended to act as an internal court where banks could appeal supervisory findings by examiners. 

The agency’s board recently disbanded the office and restored the preexisting Supervision Appeals Review Committee. The board also removed a provision requiring that all communication between the office and supervisory staff be shared in writing with the bank that filed an appeal. 

The FDIC, which made the decision in a closed session, is now accepting comments as part of a 30-day process.
The Independent Community Bankers of America recently took issue with the moves. 

“Community banks did not have a meaningful chance to utilize the Office of Supervisory Appeals,” the association said in a press release. 

“We are disappointed the FDIC board … summarily eliminated this independent forum for appeals without providing the public an opportunity to comment beforehand,” the association added. “Without a bipartisan FDIC board, the agency’s decision to reconstitute board-level review using the SARC calls into question its commitment to a more independent supervisory appeals process.”

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