Regional Banking Organizations: Beyond Examinations

Earlier this year, we highlighted some of the impacts to regulatory reporting when the Temporary Asset Threshold Relief (TATR) expired on December 31, 2021. One additional way that this temporary relief reduced regulatory burden to community banks during the pandemic was to freeze the applicability of regulatory requirements normally triggered when an organization crosses specific asset thresholds.

Across the Federal Reserve System, the temporary relief granted many organizations additional time to comply with associated regulatory requirements and transition costs, such as those typically experienced when an institution crosses $10 billion in assets and becomes supervised as a regional banking organization (RBO).

While there are similarities between community and regional bank supervision, RBOs are subject to a few additional regulations, applicability of SR 13-1: Supplemental Policy Statement on the Internal Audit Function and Its Outsourcing and some increased regulatory engagement. In recognition of the high number of new RBOs in 2022, which was impacted by the TATR expiration, Matthew Turner and Elizabeth Keenan, dedicated RBO central points of contact in the Fifth District, recently presented an overview of these changes as well as some of the common challenges observed among firms during this period of transition by supervisory teams across the country. This session, Transitioning to RBO Supervision, was the first in a new outreach series, Regional Banking: Beyond Examinations.

If you missed it, register with Ask the Fed® to view a recording of the April 27 session. Direct your regional banking supervision questions to Assistant Vice President Jason Schemmel or your Richmond Fed RBO central point of contact.