U.S. Bank regulators issue joint examiner guidance for assessing safety and soundness considering the effect of the COVID-19 pandemic on financial institutions
The U.S. Federal Reserve, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the National Credit Union Administration and state regulators (hereinafter the “Regulators“) have issued a joint examiner guidance to promote consistency and flexibility in the supervision and examination of financial institutions affected by the COVID-19 pandemic. According to this guidance, the Regulators will assess what steps institutions took to shore up their operational processes amid the Covid-19 pandemic.
Furthermore, stresses caused by the spread of COVID-19 would have led to significant economic strain and adversely affected global financial markets. The interagency guidance instructs examiners to consider the unique, evolving, and potentially long-term nature of the issues confronting institutions due to the COVID-19 pandemic and to exercise appropriate flexibility in their supervisory response. The Regulators emphasised that no action on the part of supervised institutions is required.