On April 19, the Federal Reserve Board implemented new procedures for examiners to conduct off-site loan reviews for community and small regional banks under the Board’s jurisdiction. The Board is offering this option as part of its ongoing efforts “to improve efficiency and provide burden reduction while maintaining quality supervision.”
State member banks and US branches and agencies for foreign banking organizations with less than $50 billion in total assets can opt to allow Federal Reserve examiners to review loan files off-site, during both full-scope or target examinations, so long as loan documents can be sent securely and with the required information. “The program is optional so that any bank can still choose an on-site review.” Each Reserve Bank retains the ability to deny off-site review requests. Additionally, availability of the program is subject to certain requirements.
More information from the Federal Reserve is available here.