FDIC proposes retiring hundreds of financial institution letters
WASHINGTON — The Federal Deposit Insurance Corp. is seeking comment on a proposal to retire certain financial institution letters, part of an effort to reduce the regulatory burden on banks it oversees.
Under the proposal, the FDIC would archive more than half, or 374 of 664, of its risk-management supervision letters issued between 1995 and 2017.
The letters are "outdated" or "convey regulations or other information that is still in effect but available elsewhere on the FDIC's website," the agency said in a release. The materials would remain accessible if they are needed for reference.
The FDIC is accepting public comment on the proposal for 30 days.
The letters are a tool for agencies to send information to financial institutions about new regulations, supervisory guidance, management tools and regulatory relief.
The 1996 Economic Growth and Regulatory Paperwork Reduction Act requires some financial agencies to review their rules every 10 years to identify dated or needless regulations. The Federal Financial Institutions Examination Council, the Federal Reserve Board, the Office of the Comptroller of the Currency and the FDIC all committed to reviewing interagency guidance in a March 2017 report to Congress.
The agency said it is also reviewing financial institution letters related to other aspects of supervision.