FDIC and OCC propose easing rules on sharing confidential supervisory information

The FDIC and OCC have proposed reworking the rules that govern how banks handle confidential supervisory information. BPI, which supports much of the direction, sets out where the proposals fall short: imprecise definitions, prescriptive confidentiality agreements, limited third-party disclosure categories and no notice before discretionary agency disclosures. This explainer is the fastest route to what is on the table and what BPI wants changed.

• The FDIC and OCC proposals would expand when banks may share their own CSI without obtaining prior regulatory approval.
• BPI wants CSI defined precisely so institution-generated materials do not become CSI merely because they are shared with or reviewed by the FDIC or OCC.
• BPI recommends notice and an opportunity to object before an agency makes a discretionary disclosure of institution-specific CSI.
• BPI asks that prescriptive confidentiality-agreement requirements be replaced with a principles-based framework.
• BPI urges the FDIC and OCC to work with the Federal Reserve to align the banking agencies' CSI regulations.

Executive summary

Confidential supervisory information, or CSI, generally refers to nonpublic information created or obtained through the bank supervision process. According to BPI, it can include examination reports, supervisory correspondence, supervisory ratings such as CAMELS ratings, Matters Requiring Attention and information about…

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