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BOARD OF GOVERNORS

OF THE

FEDERAL RESERVE SYSTEM

WASHINGTON, D.C. 20551

DIVISION OF BANKING

SUPERVISION AND REGULATION

DIVISION OF CONSUMER AND 

COMMUNITY AFFAIRS

SR 13-13

CA 13-10

June 17, 2013

TO THE OFFICER IN CHARGE OF SUPERVISION AT EACH FEDERAL RESERVE 

BANK AND TO ALL INSTITUTIONS SUPERVISED BY THE FEDERAL RESERVE

SUBJECT: Supervisory Considerations for the Communication of Supervisory Findings 

The purpose of this letter is to update and clarify existing examiner guidance concerning 

the communication of supervisory findings to banking organizations and institutions supervised 

by the Federal Reserve (collectively referred to as “banking organizations” or “organizations” in 

the guidance). The attached guidance discusses the Federal Reserve’s standard language for 

examination/inspection findings, which improves the consistency and clarity of written 

communications to banking organizations, and enhances the focus on matters requiring attention 

by an organization’s board of directors. In particular, the guidance clarifies requirements for 

addressing Matters Requiring Immediate Attention (MRIAs) and Matters Requiring Attention

(MRAs) that are included in examination or inspection reports or any other supervisory 

communication during the supervisory cycle. 

Beginning with supervisory activities commenced after the date of this letter when 

communicating supervisory findings to banking organizations, examiners are to discontinue 

using Observations as a separate category. Observations are being removed from the standard 

nomenclature in order to better focus an organization’s board of directors’ attention on 

deficiencies found during the supervision process. In the narrative sections of examination or 

inspection reports or other supervisory communications, examiners may, nevertheless, continue 

to apprise management of matters that are informative or advisory in nature that address the 

range of acceptable practices and that could further improve the efficiency or effectiveness of the 

banking organization’s operations. However, when examiners expect the banking organization 

to take action to address practices in a particular area or business function, examiners should 

treat these matters as MRIAs or MRAs. 

Applicability to Community Banking Organizations: This letter applies to all Federal 

Reserve-supervised banking organizations. 
 

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The attached guidance revises guidance issued in 2008 and discusses the standard 

language that the Federal Reserve uses to enhance the focus on matters requiring attention and

highlights supervisory expectations for corrective actions, Reserve Bank follow-up, and other 

supervisory considerations.1 The guidance also defines MRIAs and MRAs and outlines the 

procedures that safety-and-soundness and consumer compliance examiners will follow in 

presenting and communicating their supervisory findings. 

Reserve Banks are asked to distribute this letter to Federal Reserve-supervised banking 

organizations and the appropriate safety-and-soundness examiners, consumer compliance 

examiners, and other supervisory staff. Questions regarding this letter and the attached examiner 

guidance may be directed to the following staff in the Division of Banking Supervision and 

Regulation (BS&R):

• Vitus Ukwuoma, Manager, at (202) 452-3163, for Community Banking Organizations;

• Keith Coughlin, Manager, at (202) 452-2056, for Regional Banking Organizations;

• Celeste Molleur, Manager, at (202) 452-2783, and Kwayne Jennings, Manager, at (202)

452-3088, for Large and Foreign Banking Organizations;

• Karen Caplan, Manager, at (202) 452-2710, for Saving and Loan Holding Companies; 

and

• Molly Mahar, Assistant Director, at (202) 973-7360, for LISCC portfolio institutions.

Questions regarding this letter and the attached examiner guidance may also be directed 

to the following staff in the Division of Consumer and Community Affairs: Tim Robertson, 

Manager, Reserve Bank Oversight and Community Banking Supervision, at (202) 452-2565; or 

Tracy Anderson, Manager, Holding Company and Large and Regional Financial Institutions, at 

(202) 736-1921.

In addition, questions may be sent via the Board’s public website.

2

Michael S. Gibson

Director

Division of Banking Supervision

and Regulation

Sandra F. Braunstein

Director

Division of Consumer

and Community Affairs

Attachment:

• Supervisory Considerations for the Communication of Supervisory Findings 

 1 SR letter 08-1/CA letter 08-1, “Communication of Examination/Inspection Findings,” is superseded with the 

issuance of this guidance.

2 See http://www.federalreserve.gov/apps/contactus/feedback.aspx.
 

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Supersedes:

• SR letter 08-1/CA letter 08-1, “Communication of Examination/Inspection Findings”

Cross References:

• SR letter 13-1/CA letter 13-1, “Supplemental Policy Statement on the Internal Audit 

Function and Its Outsourcing”