WASHINGTON–The Federal Reserve said it will resume examination activities for all banks, after previously announcing a reduced focus on exam activity in light of the coronavirus response.
In March, the Fed announced it would focus on outreach and monitoring in light of the coronavirus response measures and temporarily reduce its exam activity, with the greatest reduction for smaller banks. Since that time, banks have had time to implement contingency operating plans and adapt their operations, so exam activity will resume, the Fed said.
The Federal Reserve said it anticipates exams will continue to be conducted offsite until conditions improve and will continue to work with banks to understand any specific issues they may be facing.
“Examination activities contribute to the Federal Reserve’s ability to understand the safety and soundness of each institution and assess the firm’s compliance with applicable laws and regulations, including those related to consumer protection,” the Federal Reserve said. “We anticipate that examination activities, including full scope examinations, will be conducted offsite until conditions improve to facilitate on-site examinations.”