In light of COVID-19, the Fed is adjusting its supervisory approach to provide financial institutions more flexibility in using their resources efficiently and to support their customers. You can read the complete press release and statement here.
For institutions with less than $100 billion in total consolidated assets, the Fed will greatly reduce regular examination activity, unless such work is critical to safety and soundness or consumer protection, or to address an immediate need. For any work conducted until this time, we will ensure supervisory findings remain relevant and appropriate under the current priorities. At the end of April, the Fed will reassess this approach. If activities are currently planned, you can expect to hear from our staff to discuss the status and future plans.
The Fed has increased its monitoring efforts to understand the risks and challenges for customers, staff, firm operations, and financial conditions. As you know, recent interagency guidance encourages financial institutions to work with borrowers who may not be able to meet their obligations due to COVID-19 and will not criticize risk management decisions consistent with safe and sound banking practices.
We will continue to update you as information is available. We appreciate many of the questions and concerns you have brought forward during this time, and I encourage you to do so. Please do not hesitate to contact me here.Sincerely,
William G. Spaniel
Senior Vice President & Lending Officer
Federal Reserve Bank of Philadelphia