FDIC Swaps Appeals Committee for Fairer Bank Oversight Office
Published Date: 1/26/2026
Notice
Summary
The FDIC is shaking things up by replacing its old appeals committee with a brand-new, independent Office of Supervisory Appeals. This change means banks and insured institutions get a faster, fairer way to challenge big supervisory decisions. The new rules kick in as soon as this office is up and running, making the appeals process clearer and more trustworthy—no extra costs for banks, just better fairness!
Analyzed Economic Effects
13 provisions identified: 7 benefits, 3 costs, 3 mixed.
Enforcement-Related Facts Can Be Appealed (Limited)
The Guidelines permit the Office to consider the facts and circumstances underlying certain proposed formal enforcement actions as part of an appeal, except when the proposed enforcement is based in whole or part on (1) unsafe or unsound practices under section 8 of the FDIA, or (2) violations related to AML/CFT or sanctions compliance. If an institution appeals such determinations, the appeal will be considered on an expedited schedule and the FDIC generally expects to delay initiation of the enforcement action until the appeal concludes.
New Independent Appeals Office
The FDIC replaces the Supervision Appeals Review Committee with a standalone Office of Supervisory Appeals that will have delegated authority to consider and resolve appeals. The Office will operate as an independent office reporting to the FDIC Chairperson's Office and use panels of reviewing officials to decide appeals.
Burden of Proof Remains With Institution
The Guidelines keep the burden of proof on the appealing institution for all matters at issue in an appeal, including timeliness. The FDIC is not adopting a stated preponderance-of-evidence standard in the Guidelines, though it notes preponderance is generally consistent with past practice.
More Appealable Determinations
The final Guidelines explicitly allow appeals of determinations as to compliance with informal enforcement actions and compliance with conditions imposed through supervision or application processes. They do not include decisions relating to resolution plans.
Tolling Requirement for Enforcement Appeals
If an institution appeals supervisory determinations that form the basis for a proposed enforcement action, the FDIC will require the institution to sign an agreement to toll the relevant statute of limitations. If the institution refuses, the facts and circumstances underlying the enforcement action will no longer be eligible for appeal.
Stays Decided by Division Director
Requests to stay a supervisory decision while an appeal is pending will continue to be decided by the Division Director rather than the Office, and the Guidelines state the Division Director's analysis will weigh potential harms, such as safety-and-soundness risks versus harms to the institution.
Three-Member Panel Rules
Each appeal to the Office will be assigned to a three-member panel, and final Guidelines require that each panel include at least one official with bank supervisory or examination experience and at least one official with industry experience. If vacancies or unavailability prevent a three-member panel, the Chairperson may allow the Office to proceed with fewer members or appoint temporary officials for up to 120 days.
Transparency, Publication, and Redaction Rules
The Office will publish decisions in summary or redacted form with rationale and may include dissents. Recommended redactions will be shared with the appealing institution before publication so the institution can raise concerns about possible identification. The FDIC will also explore publishing anonymized data about the number and outcomes of appeals.
Information Sharing and Ex Parte Rules
Materials submitted to the Office by either supervisory divisions or appealing institutions must be shared with the other party on a timely basis. Any ex parte communications concerning the substance of an appeal between the Office and supervisory staff must be shared in writing, and redactions must be explained to the appealing institution.
New Evidence and Panel Approval
The Guidelines allow new evidence to be submitted to the Office if approved by the reviewing panel and with a reasonable time provided for the Division Director to review and respond. This balances appellate review with limits on introducing new facts after the original determination.
Legal Division Review of Decisions
The Legal Division will review Office draft decisions for consistency with laws, regulations, and FDIC policy and may notify the Chairperson's Office if a decision is contrary to law or policy, requiring revision. The Legal Division will not opine on the merits and procedural eligibility determinations will be provided to the appealing institution with written explanation.
Waiver Powers Limited
The Office, with concurrence of the Legal Division, may waive deadlines or procedural requirements for good cause, but waiver authority does not extend to qualifications of reviewing officials, the standard of review, or the types of determinations that may be appealed.
Ombudsman Oversight and Retaliation Monitoring
The Office of the Ombudsman will serve as a non-voting participant and will have neutral oversight of the process, including monitoring for examiner retaliation. Institutions are instructed to contact the Ombudsman with concerns about retaliation.
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