Regulatory Alerts2020-06-24
SR 20-16: Supervision of De Novo State Member Banks
The Board of Governors of the Federal Reserve System issued SR 20-16 to establish supervisory guidance for de novo state member banks and insured depository institutions seeking membership. The document mandates a targeted examination within six months and full-scope examinations within twelve months, requiring a Tier 1 leverage ratio of at least 8 percent for the first three years. It further outlines specific expectations regarding capital distributions, board composition, business plan adherence, and annual audits to ensure prudent management during the initial operational period.
Share