This rule would be binding on the Board and on all staff of the Federal Reserve System, including bank examiners. The third and fourth process improvements relate to supervisory communication. The third improvement is to restore the “supervisory observation” category for lesser safety and soundness issues.
This approach would provide supervisors with a tool—supervisory recommendations—for continuing to raise concerns about less pressing supervisory matters while focusing a bank’s attention on the most urgent matters, those that would receive MRAs. We removed this category of supervisory commentary in 2013 to better focus bank management on deficiencies found during the supervision process.