That approach is generally supported by institutions we supervise and provides a more comprehensive oversight process that complements our annual or 18-month examination cycle. It also strengthens our ability to respond promptly if conditions deteriorate.
Importantly, the Federal Reserve’s examination staff indicates that this risk-focused process may be reducing on-site examination time by 15-30 percent in many cases and overall examination time of Reserve Bank personnel by perhaps 10 percent. While those results are tentative, partial, and unscientific, they are certainly encouraging in terms of resource implications.