On September 10, 2025, FDIC Acting Chairman Travis Hill issued his statement at the September 2025 meeting of the Financial Stability Oversight Council. In his statement, Hill enumerated the agency’s work to improve its regulatory and supervisory approach.
Hill stated that the OCC is working to reform supervision so it is less process-driven and more focused on core financial risks. Their work currently includes:
Working on an interagency rulemaking to define certain key terms to impose guardrails on, and improve the consistency of, the supervisory process;
Reforming the CAMELS rating system, including by amending the definitions of the component ratings, with a goal of shifting the emphasis towards financial risks and away from process;
Issuing a proposal to revamp our supervisory appeals process;
Modifying our continuous exam program, including by raising the threshold from $10 billion to $30 billion in assets;
Reducing the frequency of consumer compliance exams to once every five years, with a midcycle review, for most institutions with less than $3 billion in assets;
Streamlining aspects of our BSA and IT exams;
Modifying our enforcement policy to allow termination of enforcement orders when an institution has achieved “substantial compliance”;
Ending the use of disparate impact in fair lending exams; and
Reevaluating our consumer compliance complex bank program;
With respect to ending debanking, Hill said that OCC is working on a rulemaking to prohibit examiners from (1) criticizing institutions on the basis of reputational risk or (2) requiring, directing, or encouraging institutions to close customer accounts on the basis of political, social, cultural, or religious views; and conducting reviews of our supervised institutions for evidence of unlawful debanking.
Hill’s full statement can be found here.