At the federal level, responsibility is further divided between different agencies, such as the Fed, the FDIC, the Office of Comptroller of the Currency, and the National Credit Union Administration. This system evolved over time, and as things stand, there are some advantages to this specialization.
But this division of labor may, at times, inhibit information sharing, and as a general principle, better communication can help overcome this challenge. More specifically, better communication and information sharing between state banking commissioners and the Federal Reserve can further improve the early identification and resolution of emerging issues at community banks.