On November 18, 2025, the Federal Reserve Board released information regarding enhancements to bank supervision. According to the announcement, the new supervisory operating principles have been distributed to supervisory leadership and staff across the Federal Reserve System with the primary goal of ensuring that examiners identify, prioritize, and act on the risks that matter most—while doing so in a timely and proportionate manner.
Vice Chair for Supervision Michelle W. Bowman emphasized that the shift is not a narrowing of the supervisory mission, but a sharpening of its core focus. Bowman further noted that the enhancements are aimed at building a more effective and resilient supervisory environment. This revised approach, she said, ensures that oversight efforts truly promote safety and soundness across the broader financial system, consistent with the Federal Reserve’s fundamental supervisory responsibilities.
The Federal Reserve highlighted several important features of the new framework, which include:
Alignment of examinations with material financial risks;
Reduction of duplication across supervisory bodies; and
More efficient remediation of issues.
The Federal Reserve has already begun training examiners on the new supervisory approach to support prompt and consistent adoption. Leadership also indicated that these principles will continue to evolve and may ultimately be formalized through public supervisory guidance or regulatory amendments.
Read the Fed’s announcement here.