“Regulators should be held to the same standard of excellence to protect the safety and integrity of the financial system,” he added.
Transparency and fairness in bank examinations
The proposed legislation would help increase accountability in bank exams through the establishment of an independent review and appeal process to resolve disagreements between banks and regulators as well as leading to the hiring of an independent director to review disputes and refer appeals to an administrative law judge.
It will also require bankers to respond timely during exams as well as reduce the burden on financial institutions through the establishment of additional measures for transparency and efficiency.
“The bank examination process should be free from bias and fair to bankers. This legislation will help bring much-needed transparency to the examination process to make certain all banks – particularly rural, community banks – are treated fairly and afforded due process through a rigorous appeals process,” said Moran in a statement.
“AFC supports the FAIR Exams Act because it recognizes the issues our members experience and seeks pragmatic solutions by increasing the oversight authority of the Federal Financial Institutions Examination Council to ensure clear, consistent, and accountable examination processes throughout the federal regulatory system,” said Ian Moloney, SVP, head of policy and regulatory affairs, in a letter by AFC to the senators behind the legislation.
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