The board of the Federal Deposit Insurance Corporation (FDIC) approved a proposal that would amend the agency’s guidelines for appeals of Material Supervisory Determinations.
This proposal calls for the FDIC to replace the existing Supervision Appeals Review Committee (SARC) with an independent, standalone office within the FDIC, known as the Office of Supervisory Appeals.
“Establishing the office as a standalone entity within the FDIC whose sole function is to resolve appeals would ensure that reviewing officials have the capacity to review each case with the proper level of attention and diligence and would be scalable should the volume of appeals increase,” Acting FDIC Chairman Travis Hill said.
The new Office of Supervisory Appeals would be established as the final level of review of material supervisory determinations. It would be independent of the Divisions that make supervisory determinations.
The new office would be staffed by reviewing officials who have a deep understanding of banking and direct experience with the supervisory process. The staff may include both former government officials and industry professionals. The FDIC believes that these changes would facilitate a robust, independent supervisory appeals process that would be consistent over time.
The FDIC is accepting public comments on the proposal for 60 days after it is published in the Federal Register.