The Board Can Enhance Certain Governance Processes Related to Reviewing and Approving Supervisory Proposals

Submitting OIG:

Federal Reserve Board & CFPB OIG

Date Issued:

Wednesday, December 7, 2022

Agency Reviewed / Investigated:

Board of Governors of the Federal Reserve System

Submitting OIG-Specific Report Number:

2022-SR-B-017

Location(s):

Agency-Wide

Type of Report:

Inspection / Evaluation

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
board-governance-processes-supervisory-proposals-dec2022.pdf	1.81 MB

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	No
Develop, in consultation with the Board of Governors, a dashboard or similar tool for Board members that forecasts planned supervisory policy and guidance proposals. As part of this effort, assign responsibilities for maintaining and updating the dashboard or tool and establish a frequency for distributing the dashboard or tool.
2	Open	No
Update the Policy Issuance Processing Form template to provide guidance on how to document Board member and Board committee consultation on supervisory policy and guidance proposals.
3	Open	No
Issue internal guidance on the process for soliciting public comment on supervisory policy and guidance proposals that defines a. the types of supervisory proposals that should be submitted for public comment. b. the options for soliciting public comment on a proposal. c. the factors that should be considered when determining whether to seek comment and, if the Board decides to solicit public comment on a supervisory proposal, which option to use. d. the approval process for whether and how to solicit public comment.
4	Open	No
Update, in consultation with the Board of Governors, the director of FS, and the general counsel, the delegations of authority related to the stress testing program to clarify how actions should be delegated when there is no vice chair for supervision or CSR chair.
5	Open	No
Update, in consultation with the Board of Governors, the director of S&R, and the general counsel, the CSR charter to state how the committee should operate in the absence of a vice chair for supervision and a CSR chair, including specifying who is responsible for setting the strategic direction and priorities of the committee and developing committee meeting agendas.
6	Open	No
Update, in consultation with the Board of Governors, the Board Organization and Procedures policy to state who will fill the role of oversight governor for S&R if the Board chair has not appointed one.
7	Open	No
Establish a process to document CSR meetings, including describing what guidance or concurrence was provided to Board staff.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

Develop, in consultation with the Board of Governors, a dashboard or similar tool for Board members that forecasts planned supervisory policy and guidance proposals. As part of this effort, assign responsibilities for maintaining and updating the dashboard or tool and establish a frequency for distributing the dashboard or tool.

Open

Update the Policy Issuance Processing Form template to provide guidance on how to document Board member and Board committee consultation on supervisory policy and guidance proposals.

Open

Issue internal guidance on the process for soliciting public comment on supervisory policy and guidance proposals that defines a. the types of supervisory proposals that should be submitted for public comment. b. the options for soliciting public comment on a proposal. c. the factors that should be considered when determining whether to seek comment and, if the Board decides to solicit public comment on a supervisory proposal, which option to use. d. the approval process for whether and how to solicit public comment.

Open

Update, in consultation with the Board of Governors, the director of FS, and the general counsel, the delegations of authority related to the stress testing program to clarify how actions should be delegated when there is no vice chair for supervision or CSR chair.