Safety & Soundness Supervision
A key responsibility of the Federal Reserve banks is to regulate and supervise banking operations within their respective districts. Here in the Eighth District, financial institutions receive regular, risk-appropriate safety and soundness exams. During these exams, our examiners assess a bank's financial condition, as well as its risk management practices. They review the bank's overall balance sheet and the practices it has in place to monitor, identify and control risks. Compliance with federal and state regulations is also reviewed. Upon the completion of its examination, the financial institution receives a rating that reflects its current condition. The exam also addresses any supervisory concerns that might warrant further attention.
All financial institutions use technology regardless of their size and product/service complexity in their daily operational environments. Information Technology examinations are conducted to ensure our banks evaluate and manage the overall business and cyber risk associated with computer hardware, core banking software, software applications/programs, sensitive customer information, email and vendor relationships.
Financial institutions with trust powers have a duty to adhere to their contracted fiduciary responsibilities. Our examiners review the trust activities of these financial institutions to ensure they adhere to their fundamental fiduciary duties.
Examiners consider a variety of issues when determining the effectiveness in which a financial institution carries out these duties. They assess the following areas: management, operations, internal controls and audit, earnings performance, compliance and asset management.