Large Bank Supervision Forum 2023

Best Practices for Large Bank Supervision


Combined Group Document I.

Establishing Relationship with Federal Regulator

1. Build a strong relationship with the federal regulator o Contact your federal agency counterpart and schedule a meeting for you and your management team to meet with your federal agency counterparts

Introductory Meeting with Federal Counterpart

2. Create a list of talking points to discuss at meeting with federal counterpart. They should include all aspects of supervision and examinations that are important to you and your management. Some examples: o Share information on your experience level and prior large bank experience o Discuss your philosophy on large bank supervision o Share how you see the workload being shared between agencies o Discuss your level of involvement in decision ‐ making o Share any initial interests or concerns you or your management team have based on the institutional knowledge that you have at that time Inform the federal regulator your state wants involvement in Supervisory Plan preparation 3. Share information regarding each agency’s staffing philosophy and ability o EIC/CPC rotation limits o It is a Best Practice to use a core team who are assigned primarily to the large bank if staffing resources allow o Having an EIC assigned to a large institution for a predetermined length of time allows for consistency to both the examination function and the management team at the institution 4. Discuss leveraging work of Internal Audit and Internal Loan Review o Discuss to what extent your agency utilizes findings from internal audit and loan review functions o Specifically discuss what, if any, limitations to relying on the work of the functions 5. Discuss document timing requirements for all key examination tasks: o Scoping Memo o First Day Letter / Request Letter o Summary Conclusion Memo o Supervisory Letter

6. Discuss each agency’s examination logistics preference o On ‐ site, off ‐ site, Hybrid, or another predetermined site 7. Determine how documents will be shared

Last update March 1, 2023

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