The Federal Reserve Board has published the first in a series of staff manuals detailing how it supervises the largest and most complex banks. The move is intended to increase transparency for the public regarding oversight practices for these institutions. Additional manuals are expected to be released early next year.
“For many years, I have sought the public release of the Fed’s large bank supervision manuals. Today, I am pleased to announce their release. This is another step in our efforts to improve transparency and public accountability for bank supervision,” said Vice Chair for Supervision Michelle W. Bowman. “By enhancing our supervisory transparency, we are holding ourselves to high standards and ensuring that we execute our responsibilities appropriately and fairly.”
The manual made available this week does not yet include updates reflecting the recent change in name from LISCC (Large Institution Supervision Coordinating Committee) to GSIB (U.S. global systemically important banking organizations). It also does not incorporate changes based on a statement of supervisory operating principles issued by the Board in November. The Board plans to issue an updated version once these amendments are completed.
Early next year, additional documents will be published covering areas such as large bank operating committee processes, capital and liquidity planning, recovery and resolution planning, rating programs for large banks, enforcement actions, and risk identification systems. These materials have been modified from their internal versions to remove confidential supervisory information but otherwise reflect current supervisory practices.
LISCC refers to the Large Institution Supervision Coordinating Committee while GSIB denotes U.S.-based global systemically important banking organizations.
