FDIC announces changes to appeals process

The FDIC recently changed its supervisory appeals process to include a standalone, independent office within the agency, the Office of Supervisory Appeals..Announced Jan. 22, the change replaces the Supervisory Appeals Review Committee, which was a three-member panel of senior FDIC officials. The Office of Supervisory Appeals is staffed by officials with direct supervisory experience, according to the FDIC, and can include former bankers, government officials and other financial industry professionals. Each panel will have at least one official with bank supervisory experience, with another having experience in the banking industry. FDIC Chair Travis Hill said the composition of the Review Committee raised concerns about impartial reviews. The FDIC eliminated the previous version of the Office of Supervisory Appeals in 2022. The FDIC also expanded banks’ appeal rights to include cases in which an enforcement action is pending or proposed.The Independent Community Bankers of America has called for the creation of an independent, separate appeals office under the Federal Financial Institutions Examination Council, which would be independent of the FDIC, OCC and Federal Reserve System. Such an appeals office has not been created. Comptroller of the Currency Jonathan Gould has said the OCC will soon propose its own changes to the appeals process.