The Board's and Reserve Banks' Practices for Following Up on Safety and Soundness Findings for Large and Foreign Banking Organizations​

The Board and Federal Reserve Banks monitor the safety and soundness of large and foreign banking organizations. If they identify a formal finding as part of their supervisory activities, and the LFBO remediates it, the Board and the respective Reserve Bank should timely confirm that remediation.

However, most of the horizontal findings we reviewed were not closed until several months after LFBOs submitted remediation materials. After we completed our work, but before we issued this report, the Board revised its supervisory approach, including the process for validating institutions' remediation efforts. As a result, we do not have recommendations but note that the Board should consider enhancing its system for tracking and reporting remediation follow-up work.