US regulator to restrict bank examiners’ oversight to strictly financial risks

The Federal Deposit Insurance Corporation (FDIC) has put forward a pair of proposals that could lead to a change in the way banks are supervised in the US. The proposals are aimed at restricting its examiners to focus only on core financial risks and limit their authority to address nonfinancial issues. The first proposal narrows the definition of “safety and soundness” for banks to issues that present a material financial risk to the institution. Under this proposal, regulators could use matters requir ...