As the nation’s central bank, the Federal Reserve brings a different, important perspective to the supervisory process through its attention to the broad and long-term consequences of supervisory actions on the financial system and the economy.
Significantly, the practical, hands-on involvement which the Federal Reserve gains through its supervisory function supports and complements our other central bank responsibilities, including fostering a safe and efficient payment system and ensuring the stability of the financial system. Past studies of bank failures have cited a number of contributing factors including, but certainly not limited to, inadequate supervisory staffing and antiquated examination procedures.