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.

More information: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200623a.htm