Federal Deposit Insurance Corporation
550 17th Street NW, Washington, DC 20429 Division of Supervision
Supervisory Appeals
FIL-28-95
April 4, 1995
TO: CHIEF EXECUTIVE OFFICER
SUBJECT: Guidelines for Appealing Supervisory Determinations
The FDIC has approved the attached guidelines establishing an appeals process for material supervisory
determinations made by agency examiners and regional supervisory officials. The guidelines became
effective when adopted by the FDIC Board of Directors on March 21, 1995.
Institutions now have 60 days following receipt of written notice of a material supervisory determination to
file an appeal with a special committee in the Washington headquarters composed of the Vice Chairman
of the FDIC, the Director of the Division of Supervision, the Director of the Division of Compliance and
Consumer Affairs, the General Counsel, and the Ombudsman. The committee will consider and decide
the appeal, and notify the institution of its decision within 60 days. Material supervisory determinations
that may be appealed include:
Examination ratings, such as CAMEL, compliance, and Community Reinvestment Act (CRA)
ratings;
Determinations relating to the adequacy of loan loss reserve provisions;
Disputed asset classifications exceeding 10 percent of total capital;
Determinations relating to violations of law or regulation; and
Other determinations that may have an effect on an institution's capital, earnings, operating
flexibility, its capital category for prompt corrective action purposes, or otherwise affect the nature
and level of supervisory oversight accorded the institution.
Certain determinations may not be appealed under the new guidelines. These include decisions to take
prompt corrective action pursuant to section 38 of the Federal Deposit Insurance Act, determinations for
which other appeals procedures exist (such as determinations relating to deposit insurance assessment
risk classifications), and decisions to initiate formal or informal enforcement actions.
An institution may appeal any material supervisory determination but it first should make a good faith
effort to resolve the matter with the on-site examiner and/or the appropriate FDIC regional office. The on-
site examiner and the regional office are expected to respond promptly to the concerns raised. If an
institution is unable to resolve the dispute with the on-site examiner or regional office, it may appeal the
determination to the Washington office. While attempting to resolve the dispute with the examiner or the
regional office is encouraged, it is not a condition for filing an appeal with the Washington office.
An institution wishing to file an appeal with the Washington office should have the merits of the disputed
determination considered by its board of directors, which must authorize the appeal. The appeal
submission should include: a detailed description of the issues in dispute; the surrounding circumstances;
the institution's position regarding the dispute; any arguments to support that position (including the
citation of any relevant statute, regulation, policy statement or other authority); how the resolution of the
dispute would impact the institution and why such impact would be material; and a description of the good
faith efforts to resolve the dispute with the on-site examiner and/or the regional office staff, and the results
of those efforts.Inactive
550 17th Street NW, Washington, DC 20429 Division of Supervision
Supervisory Appeals
FIL-28-95
April 4, 1995
TO: CHIEF EXECUTIVE OFFICER
SUBJECT: Guidelines for Appealing Supervisory Determinations
The FDIC has approved the attached guidelines establishing an appeals process for material supervisory
determinations made by agency examiners and regional supervisory officials. The guidelines became
effective when adopted by the FDIC Board of Directors on March 21, 1995.
Institutions now have 60 days following receipt of written notice of a material supervisory determination to
file an appeal with a special committee in the Washington headquarters composed of the Vice Chairman
of the FDIC, the Director of the Division of Supervision, the Director of the Division of Compliance and
Consumer Affairs, the General Counsel, and the Ombudsman. The committee will consider and decide
the appeal, and notify the institution of its decision within 60 days. Material supervisory determinations
that may be appealed include:
Examination ratings, such as CAMEL, compliance, and Community Reinvestment Act (CRA)
ratings;
Determinations relating to the adequacy of loan loss reserve provisions;
Disputed asset classifications exceeding 10 percent of total capital;
Determinations relating to violations of law or regulation; and
Other determinations that may have an effect on an institution's capital, earnings, operating
flexibility, its capital category for prompt corrective action purposes, or otherwise affect the nature
and level of supervisory oversight accorded the institution.
Certain determinations may not be appealed under the new guidelines. These include decisions to take
prompt corrective action pursuant to section 38 of the Federal Deposit Insurance Act, determinations for
which other appeals procedures exist (such as determinations relating to deposit insurance assessment
risk classifications), and decisions to initiate formal or informal enforcement actions.
An institution may appeal any material supervisory determination but it first should make a good faith
effort to resolve the matter with the on-site examiner and/or the appropriate FDIC regional office. The on-
site examiner and the regional office are expected to respond promptly to the concerns raised. If an
institution is unable to resolve the dispute with the on-site examiner or regional office, it may appeal the
determination to the Washington office. While attempting to resolve the dispute with the examiner or the
regional office is encouraged, it is not a condition for filing an appeal with the Washington office.
An institution wishing to file an appeal with the Washington office should have the merits of the disputed
determination considered by its board of directors, which must authorize the appeal. The appeal
submission should include: a detailed description of the issues in dispute; the surrounding circumstances;
the institution's position regarding the dispute; any arguments to support that position (including the
citation of any relevant statute, regulation, policy statement or other authority); how the resolution of the
dispute would impact the institution and why such impact would be material; and a description of the good
faith efforts to resolve the dispute with the on-site examiner and/or the regional office staff, and the results
of those efforts.Inactive
Appeals relating to safety and soundness may be submitted to:
Mr. Stanley J. Poling
Director, Division of Supervision
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429
Appeals relating to consumer protection, fair lending or CRA may be submitted to:
Mr. Paul L. Sachtleben
Director, Division of Compliance and Consumer Affairs
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429
The guidelines also contain provisions designed to protect institutions from possible retaliation by agency
examiners or other FDIC supervisory officials as a result of filing an appeal. Any institution that believes it
is the subject of retaliation may file a complaint with the appropriate Division Director or the Ombudsman.
If confirmed, the FDIC employee will be subject to appropriate disciplinary action. The Ombudsman may
be addressed at:
Ombudsman
Office of the Chairman
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429
John W. Stone
Executive Director
Attachment: PDF Format (61 kb, PDF help or hard copy), HTML Format
Distribution: FDIC-Supervised Banks (Commercial and Savings)Inactive
Mr. Stanley J. Poling
Director, Division of Supervision
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429
Appeals relating to consumer protection, fair lending or CRA may be submitted to:
Mr. Paul L. Sachtleben
Director, Division of Compliance and Consumer Affairs
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429
The guidelines also contain provisions designed to protect institutions from possible retaliation by agency
examiners or other FDIC supervisory officials as a result of filing an appeal. Any institution that believes it
is the subject of retaliation may file a complaint with the appropriate Division Director or the Ombudsman.
If confirmed, the FDIC employee will be subject to appropriate disciplinary action. The Ombudsman may
be addressed at:
Ombudsman
Office of the Chairman
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429
John W. Stone
Executive Director
Attachment: PDF Format (61 kb, PDF help or hard copy), HTML Format
Distribution: FDIC-Supervised Banks (Commercial and Savings)Inactive