Text of Recommendation | Conduct and document an evaluation of existing examination guidance to determine whether updates are warranted for:
a. The need to timely communicate findings to bank board and management even when not all supervisory findings are finalized.
b. Escalation of supervisory concerns and ratings downgrades when SRs and MRBAs have been outstanding for multiple examination cycles.
c. Specific circumstances that give rise to interim rating changes, including when concerns are known in advance of the issuance of ROEs and other supervisory
products.
d. The effect of bank management’s and board’s lack of receptiveness and responsiveness towards the supervisory process on the rating for the CAMELS Management component.
e. Permitting the LBS Branch to review all supervisory products prior to issuance to the bank when requested, regardless if the products contain ratings information.
f. Resolution of situations in which trends between UFIRS and LIDI ratings trend differently for multiple quarters. |
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Recommendation Number | 3 |
Recommendation Status | Open |
Significant Recommendation | No |
Submitting OIG | |
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Linked Report |