As part of its ongoing exam modernization initiative, the Federal Financial Institutions Examination Council today issued a policy statement aimed at promoting clarity and consistency of reports of examination. The policy statement—which is intended to reduce regulatory burden for community banks—includes principles that “set forth minimum expectations of what should be included in all ROEs.”
Among other things, the principles establish that all ROEs should present conclusions and issues in order of importance; document the condition and risk profile of the institution; discuss the adequacy of the institution’s risk management practices; and document issues of supervisory concern or warranting prompt corrective action.
Concurrently, the agencies are rescinding their 1993 Interagency Policy Statement on the Uniform Core Report of Examination.
