The Federal Reserve Board ("FRB") introduced a more tailored examinations process for assessing the safety and soundness of community and regional state member banks. The process, which is outlined in a Supervision and Regulation Letter, is relevant to (i) state member banks without a holding company and with less than $100 billion in total consolidated assets and (ii) state member banks affiliated with a top-tier holding company that has less than $100 billion in total consolidated assets.
The process - Bank Exams Tailored to Risk (or BETR) - builds on the FRB's overall risk-focused approach to supervision. Specifically, the process is intended to:
- establish data-driven surveillance metrics to help the agency classify the scale of each risk dimension for a bank; and
- tailor examination work programs to more closely align with a bank's risk profile.
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