Tiered supervision Federal banking regulators have long organized supervision into portfolios of institutions based predominantly – though for larger firms, not exclusively – on asset size. Various provisions of Dodd-Frank motivated the Federal Reserve to modify the composition of the portfolios somewhat.
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.