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.
Sidley Austin LLP provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship.
Attorney Advertising - For purposes of compliance with New York State Bar rules, our headquarters are Sidley Austin LLP, 787 Seventh Avenue, New York, NY 10019, 212.839.5300; One South Dearborn, Chicago, IL 60603, 312.853.7000; and 1501 K Street, N.W., Washington, D.C. 20005, 202.736.8000.