On March 24, 2020, the Board of Governors of the Federal Reserve System (FRB) issued a Statement on Supervisory Activities (Statement)1 as part of the evolving effort by federal banking regulators to work with financial institutions and their customers affected by COVID-19. The Statement clarifies the FRB’s focus and priorities from a supervisory perspective, building on a prior interagency press release issued on March 9, 20202 and a joint interagency statement issued on March 22, 2020.3
The Statement makes clear that all FRB examination activities will be conducted off-site until normal operations may be resumed. Moreover, the FRB will generally prioritize its supervisory efforts with a focus on monitoring at the expense of full examinations, specifically concentrating on understanding the challenges and risks brought on by the current environment. Regulated institutions should expect a continued dialogue as the COVID-19 situation unfolds with additional statements, webinars, frequently asked questions and ongoing coordination with regulators.
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