Large Bank Supervision Forum 2023

Best Practices for Large Bank Supervision

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o Assign responsibility for reviewing remediation of outstanding issues applicable to that target o Monitor progress on the review during the examination o Determine if the internal audit function, or other function of the bank, has reviewed the remediation and cleared the issue for their internal tracking o Make recommendation on the status of the issue  If the issue has been addressed, recommend closure  If management is not achieving the expected results or not giving the matter the appropriate attention, determine if the issue has been properly communicated and consider one of the following:  Close issue and open new issue worded to clarify the deficiency and communicate the expected level of attention to the matter  Elevate the issue from SR/MRA to MRBA/MRIA  Request remediation updates on all open SRs and MRBAs/MRAs during the ROE Rollup period allowing enough time for discussion between EICs and Bank Management as to ongoing status  If the issue has multiple components, recommend one of the following options:  Close existing issue and open new issue with components that have not been addressed  Close existing issue and create completely new issue that addresses the remaining weaknesses and any new weaknesses that may have been identified 1. Schedule exit meeting(s) based on the agreed upon practice o If your procedures include a “soft” exit at the conclusion of examinations, schedule the meeting to discuss the preliminary findings  Clearly inform management that all matters discussed are preliminary and subject to change following the vetting process  Confirm the accuracy of all material issues to ensure that examination staff received all information and the observations are accurate  Per procedures, you may want to share what you plan to recommend for the issues discussed such as SR or MRBA  Discuss possible actions that may be expected of management regarding each issue  Notify management if you will require a commitment from them on remediation at the exit meeting so they can prepare their response VI. Communicating results Exit Meetings

Last update March 1, 2023