Large Bank Supervision Forum 2023

Best Practices for Large Bank Supervision

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3. Explore opportunities to conduct independent ongoing monitoring reviews in areas specific to concerns of your state agency 4. Identify examiner resources needed during the supervisory cycle and add to the schedule o Share schedule with agency office staff to provide advance notice of target review dates and requisite skills and knowledge needed o To maximize productivity and quality of work, examiners should be scheduled to participate on the target for their full assignment o It is a Best Practice to utilize the same examiners repeatedly, so they build valuable institutional knowledge about products, people, and processes 5. Leverage Internal Audit (IA) reports in planning target areas if IA is considered satisfactory o Audit workpapers are an excellent source of knowledge to understand where to focus the next targets and possibly frequency of reviews o Review the IA packages to gauge potential targets needed in the future o Monitor the timing of the internal audits to avoid targeting an area that may be subject to an ongoing IA at that time 6. Areas for consideration to guide the review planning process: o The federal regulators will have certain areas that they will focus on based on their large bank examination philosophy and input from their leadership in their regional office and Washington, D.C.  Cooperate to help plan for those reviews  In addition, add reviews for any areas that are an important area of focus for the state agency o Consider allocating reviews to areas related to CAMEL components, if there is trend of increasing risk profile and regulatory attention to ensure adequate coverage o Discuss any new business/product lines implemented since the previous examination and assess risks associated with those areas and CAMELS components  This could be incorporated during the scoping phase of specific target reviews o Review/assess outstanding regulatory issues o Include the following in your Risk Assessments :  Complex operational areas  Prior recommendations, weaknesses, and apparent violations  Mergers/acquisitions  Changes in economic and/or competitive environment  New regulations/guidance 7. Understand and facilitate bank systems access: o If bank access is required, communicate timely with the bank to facilitate access for examination staff prior to review o Ensure examination staff has necessary access and training on all platforms o If possible, conduct training sessions during pre ‐ plan week o Ensure available bank contact for any password and/or technical issues

Last update March 1, 2023