The U.S. Federal Reserve Board announced Monday that it is restarting supervisory examinations for all banks.
The Fed had curbed exam activity in March, when it shifted its focus to outreach and monitoring in response to the public health restrictions that were introduced when the Covid-19 pandemic emerged.
In particular, the Fed reduced exam activity for smaller banks.
“This initial posture included a reduced focus on examinations to allow firms to focus on adapting to Covid-19 containment actions and provide customers with needed assistance,” it said.
Now, however, the Fed says, “banks have had time to implement contingency operating plans and adapt their operations, so exam activity will resume.”
The Fed said that its examinations enable it to assess “the safety and soundness” of individual banks, and their compliance with laws and regulations, including consumer-protection requirements.
While the agency is resuming supervisory exam activity, these exercises will continue be carried out remotely “until conditions improve,” allowing on-site exams, the Fed noted.