And it is absolutely critical that examination and supervision do not produce outcomes that are barriers to small business expansion.
Unlike most other businesses, banks are subject to a system of examination and supervision, developed over the past century, that has particular and deliberate characteristics: regular on-site visits by specially trained examiners; exit meetings between examiners and bank senior management to explain examination findings; written examination reports with narratives and metrics describing the findings of the examiners; and, if necessary, follow-up on action items that the bank must pursue to remedy specific problems.