A current evaluation of how federal regulators managed COVID-caused disturbances to bank assessments has actually led the Government Accountability Office to make 2 suggestions for how those exact same regulators might much better get ready for future disturbances.
In a report recently, the GAO kept in mind that regulators couldn’t analyze most banks and cooperative credit union face to face throughout the pandemic, so they executed workarounds such as rescheduling examinations and evaluating scanned copies of loan files. Of the 5 regulative firms examined that have threat management programs, 3 had actually upgraded their programs to show pandemic-related modifications in threat and likewise examined pandemic lessons discovered. The other 2 had actually done one or the other, however not both.
GAO singled out the 2 regulators that had actually not taken both actions. The firm suggested that the Federal Reserve establish and record particular action steps and timespan for finishing the elements of its business threat management structure associated to recognizing and examining dangers to its supervisory objective. The Fed has neither concurred nor disagreed with the suggestion, GAO stated. The firm likewise suggested the Office of the Comptroller of the Currency evaluation prospective lessons discovered associated to how it handled modifications to supervisory activities throughout the COVID-19 pandemic. OCC stated an evaluation would be finished by March 2023.