ICBA expressed disappointment that the FDIC eliminated the independent Office of Supervisory Appeals and restored the Supervision Appeals Review Committee as the final level of review in the agency’s supervisory appeals process.
Quick Change: In a news release responding to this week’s reversal by the agency, ICBA said community banks did not have a meaningful chance to utilize the Office of Supervisory Appeals, which became fully staffed and operational only six months ago.
Independent Review: “Without a bipartisan FDIC board, the agency’s decision to reconstitute board-level review using the SARC calls into question its commitment to a more independent supervisory appeals process,” ICBA President and CEO Rebeca Romero Rainey said. “We look forward to continued dialogue with the FDIC on this issue.”
New Guidelines: Under this week’s revised Guidelines for Appeals of Material Supervisory Determinations, the SARC generally replaces the Office of Supervisory Appeals as the final level of review. Effective immediately and open to a 30-day comment period, the move reverses last year’s revised guidelines establishing the OAS.
ICBA Position: In a 2020 comment letter in support of the OAS replacing the SARC, ICBA said the best approach to establishing a more transparent and independent appeals process would be to create a separate appeals office independent of the federal banking agencies.
