FDIC Board of Directors Proposes to Establish Office of Supervisory Appeals

WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) Board of Directors today approved a proposal that would amend the agency’s Guidelines for Appeals of Material Supervisory Determinations. Through this proposal, the FDIC would replace the existing Supervision Appeals Review Committee (SARC) with an independent, standalone office within the FDIC, known as the Office of Supervisory Appeals (Office).

“Establishing the office as a standalone entity within the FDIC whose sole function is to resolve appeals would ensure that reviewing officials have the capacity to review each case with the proper level of attention and diligence, and would be scalable should the volume of appeals increase,” said Acting FDIC Chairman Travis Hill. 

Under the proposed framework, the Office would be established as the final level of review of material supervisory determinations, independent of the Divisions that make supervisory determinations. The Office would be staffed by reviewing officials who have a deep understanding of banking and direct experience with the supervisory process, and may include former government officials and industry professionals. The FDIC believes that these changes would facilitate a robust, independent supervisory appeals process that would be consistent over time.

Public comments on the proposal are due 60 days after publication in the Federal Register.