US Fed ramps up demands for corrective actions by regional banks – Bloomberg News
2023.08.30 15:42
© Reuters. FILE PHOTO: An eagle tops the U.S. Federal Reserve building’s facade in Washington, July 31, 2013. REUTERS/Jonathan Ernst/File Photo
(Reuters) -The Federal Reserve has issued a slew of private warnings to lenders with assets of $100 billion to $250 billion as part of increased efforts to tighten supervision, Bloomberg News reported on Wednesday citing people familiar with the matter.
Among the banks given the warnings were Citizens Financial (NYSE:), Fifth Third Bancorp (NASDAQ:) and M&T Bank Corp (NYSE:), the report added.
The notices touched on a wide range of issues including lenders’ capital and liquidity as well as technology and compliance, according to the report.
The banks and the Fed declined to comment.
Banks are dealing with the aftermath of the biggest crisis to hit the sector since 2008, which saw three mid-sized lenders collapse earlier this year.
The failures exposed vulnerabilities of lenders to rising interest rates and showed how fast spooked customers can pull deposits, triggering a bank run.
