We have four such groups: (1) community banks, (2) regional banking organizations, (3) large banking organizations, and (4) firms overseen by the Large Institution Supervision Coordinating Committee (LISCC). 20 This arrangement is not simply a matter of organizational convenience. Nor is it only a means for promoting consistency of treatment among similar banks throughout the Federal Reserve System, important as that goal is.
As with tiered regulation, this tiered approach to supervision is intended to take account of differences in business models, risks, relative regulatory burden, and other salient considerations. Where specific regulatory goals for the different portfolios vary, the supervisory programs should reflect those differences.