Print ArticleFebruary 2026
DC Updates
DC Updates highlights recent press releases on actions of the Federal Reserve Board as well as speeches and congressional testimonies of Board members that may be of interest to community bankers. All the Federal Reserve Board’s rulemakings, press releases, testimonies, speeches, and policy statements can be found on the Board's website. The updates listed below reflect actions, speeches, and testimonies from September 18, 2025, to January 7, 2026.
Guidance and Letters
Guidance
On November 18, 2025, the Federal Reserve Board released new supervisory operating principles that provide an outline of broad changes to the conduct of supervision. Among other things, the supervisory operating principles are intended to enhance bank supervision by aligning bank examinations and ratings with material financial risks and streamlining the remediation of issues. The goal of these changes is to strengthen supervision by focusing on identifying and taking timely proportionate action as early as possible to eliminate the most important risks threatening the safety and soundness of the Federal Reserve’s supervised banking organizations. Board Supervision leadership will continue to refine these principles and expects to formalize them in public supervisory guidance or regulatory changes where appropriate.
Aspects of the supervisory operating principles that are particularly relevant for community bankers include the following:
- Examiners and other supervisory staff should prioritize their attention on a bank’s material financial risks.
- Supervisory ratings should accurately reflect an institution’s financial condition and material financial risks.
- Examiners and other supervisory staff should not discourage or prohibit firms from taking into account liquidity available from the Federal Home Loan Banks in managing their liquidity or performing their internal liquidity stress tests. Similarly, they should not require firms to preposition assets at the discount window as a condition for future discount window secured borrowings.
- The standard for issuing matters requiring attention (MRAs) and matters requiring immediate attention (MRIAs) based on threats to safety and soundness will be changing. Examiners and other supervisory staff cannot communicate MRAs and MRIAs in vague or overbroad language. Examiners can address shortcomings at banks that do not rise to the level of MRAs or MRIAs by making nonbinding supervisory observations.
Supervision and Regulation (SR) Letters
SR Letter 25-06, “Status of Certain Investment Funds and Their Portfolio Investments for Purposes of Regulation O and Reporting Requirements Under Part 363 of FDIC Regulations,” released December 19, 2025.
SR Letter 25-05, “Regulatory Capital Instrument Issuance by Mutual Banking Organizations,” released October 22, 2025.
SR Letter 25-04, “Frequently Asked Questions Regarding Suspicious Activity Reporting Requirements,” released October 10, 2025.
SR Letter 25-03, “Imposition of Special Measures by the U.S. Department of the Treasury's Financial Crimes Enforcement Network ("FinCEN"),” released September 25, 2025.
SR Letter 13-11, “Filing Procedures for Annual Independent Audits and Reports Required Under Federal Deposit Insurance Corporation (FDIC) Rules,” revised December 19, 2025.
Consumer Affairs (CA) Letter
CA Letter 25-01, “Communications Regarding the Federal Reserve’s Consumer Affairs Supervision Program,” released November 26, 2025.
Past Events
Community Bank Conference, hosted by the Federal Reserve Board, Washington, DC, on October 9, 2025.
The Federal Reserve Board hosted a community banking–focused conference, bringing together a range of interested parties to discuss key issues facing the community bank sector. Videos from the conference are available online.
Public Releases
Matters Related to Safety and Soundness Supervision and Consumer Affairs
Federal Reserve Board Requests Public Input on “Payment Account,” Which Eligible Financial Institutions Could Use for the Limited Purpose of Clearing and Settling Their Payments (December 19, 2025)
The Federal Reserve Board requested comments on a prototype for a Federal Reserve Bank account (payment account) designed for the limited purpose of clearing and settling an eligible financial institution’s payments. A payment account would be a separate and distinct type of account from a Reserve Bank master account.
The Federal Reserve Board rescinded its 2023 policy statement that limited Board-supervised state member banks to the same activities permissible for banks supervised by the other federal bank regulatory agencies. That statement included a discussion of how the policy would apply to certain innovative products and services (cryptoasset activities). Since the 2023 policy statement was published, the financial system and the Board's understanding of innovative products and services have evolved. As a result, the 2023 policy statement is no longer appropriate and has been withdrawn. The new policy statement creates an avenue for both insured and uninsured Board-supervised state member banks to engage in certain innovative activities.
The Federal Reserve Board Publishes the Supervision and Regulation Report (December 2025)
The Federal Reserve Board published its semiannual Supervision and Regulation Report to inform the public and provide transparency about its supervisory and regulatory policies and actions as well as current banking conditions. This report focused on (1) banking system conditions, (2) regulatory developments, and (3) supervisory developments.
Agencies Issue Proposal to Enhance Community Banks’ Ability to Serve Their Communities While Maintaining Strong Capital Requirements (November 25, 2025)
The Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency requested public comment on a proposal to revise the community bank leverage ratio (CBLR) framework. The proposal would lower the CBLR requirement to 8 percent from the current 9 percent and would also extend the grace period, from two quarters to four quarters, for a community bank that opts into the framework and falls out of compliance to come back into compliance. The proposed revisions would reduce the regulatory burden and provide community banks with greater flexibility and optionality in their capital management approach.
Agencies Issue Reminder to Institutions on Lending When the National Flood Insurance Program Is Unavailable (October 1, 2025)
Federal financial institution regulatory agencies issued a reminder that, during periods in which the National Flood Insurance Program is not available, lenders may continue to make loans without flood insurance coverage. However, lenders are still required to comply with other applicable parts of the flood insurance regulations and to evaluate safety and soundness during the lapse period. The guidance also addresses the availability and use of private flood insurance.
Other Federal Reserve Board Announcements
Federal Reserve Board Requests Public Input on the Impact of Potential Strategic Changes to Check Services Provided by the Fed, as Well as Check Usage and Preferences (December 4, 2025)
The Federal Reserve Board requested public input on the impact of potential changes to its check services, including the impact on consumers and businesses, as well as check usage and preferences. This request for public input is preliminary. Accordingly, if commenters and the Board's analysis support a strategy that may have significant longer-run effects on the nation's payments system, the Board would seek additional public comment on such changes to check services prior to adoption.
The Federal Reserve Board will be expanding the operating days of two large-value payments services, the Fedwire Funds Service and the NSS, to include Sundays and weekday holidays. The Reserve Banks will implement this expansion in several years, no earlier than 2028, to ensure operational and industry readiness.
Testimony
Supervision and Regulation, testimony of Vice Chair for Supervision Michelle W. Bowman before the U.S. House of Representatives Committee on Financial Services, Washington, DC, on December 2, 2025.
Speeches
Speeches Related to Supervision and Regulation
Modernizing Supervision and Regulation: 2025 and the Path Ahead, speech given by Vice Chair for Supervision Michelle W. Bowman (virtually) at the California Bankers Association Bank Presidents Seminar, Laguna Beach, CA, on January 7, 2026.
Regulatory Dominance of the Federal Reserve’s Balance Sheet, speech given by Governor Stephen I. Miran at the Bank Policy Institute and Small Business and Entrepreneurship Council, Washington, DC, on November 19, 2025.
The Case for Strong, Effective Banking Supervision, speech given by Governor Michael S. Barr at the Alan Meltzer Speaker Series, Kogod School of Business, American University, Washington, DC, on November 18, 2025.
Opening Remarks, speech given by Vice Chair for Supervision Michelle W. Bowman at the Economic Growth and Regulatory Paperwork Reduction Act Outreach Meeting, hosted by the Federal Reserve Bank of Kansas City, Kansas City, MO, on October 30, 2025.
Community Banking: Looking Toward the Future, speech given by Vice Chair for Supervision Michelle W. Bowman at the Community Bank Conference, hosted by the Federal Reserve Board, Washington, DC, on October 9, 2025.
Opening Remarks, speech given by Vice Chair for Supervision Michelle W. Bowman at the Community Bank Conference, hosted by the Federal Reserve Board, Washington, DC, on October 9, 2025.
Welcoming Remarks, speech given by Chair Jerome H. Powell (via prerecorded video) at the Community Bank Conference, hosted by the Federal Reserve Board, Washington, DC, on October 9, 2025.
Community Banking: The Cornerstone of Building Communities, speech given by Governor Michael S. Barr at the 2025 Community Banking Research Conference, St. Louis, on October 8, 2025.
Welcome Remarks, speech given by Vice Chair for Supervision Michelle W. Bowman (via prerecorded video) at the 2025 Community Banking Research Conference, St. Louis, on October 7, 2025.
Speeches Related to the U.S. Economy and Monetary Policy
The Inflation Outlook, speech given by Governor Stephen I. Miran at the School of International and Public Affairs, Columbia University, New York, on December 15, 2025.
Opening Remarks, speech given by Chair Jerome H. Powell at the George P. Shultz Memorial Lecture Series: Shultz and Economic Policy, Hoover Institution, Stanford University, Stanford, CA, on December 1, 2025.
AI, the Economy, and Financial Stability, speech given by Vice Chair Philip N. Jefferson at the 2025 Federal Reserve Bank of Cleveland Financial Stability Conference, Cleveland, on November 21, 2025.
A Policymaker’s View of Financial Stability, speech given by Governor Lisa D. Cook at Georgetown University’s McDonough School of Business Psaros Center for Financial Markets and Policy, Washington, DC, on November 20, 2025.
Economic Outlook and Monetary Policy, speech given by Vice Chair Philip N. Jefferson at the Federal Reserve Bank of Kansas City, Kansas City, MO, on November 17, 2025.
A Global Stablecoin Glut: Implications for Monetary Policy, speech given by Governor Stephen I. Miran at the BCVC Summit 2025, Harvard Club of New York City, New York, on November 7, 2025.
The Economic Outlook and Monetary Policy, speech given by Governor Lisa D. Cook at the Brookings Institution, Washington, DC, on November 3, 2025.
Cutting Rates in the Face of Conflicting Data, speech given by Governor Christopher J. Waller at the Council on Foreign Relations, New York, on October 16, 2025.
Exploring the Possibilities and Risks of New Payment Technologies, speech given by Governor Michael S. Barr at the 2025 DC Fintech Week, Washington, DC, on October 16, 2025.
Understanding the Fed’s Balance Sheet, speech given by Chair Jerome H. Powell at the 67th Annual Meeting of the National Association for Business Economics, Philadelphia, on October 14, 2025.
Thoughts on Monetary Policy Decision-Making and Challenges Ahead, speech given by Vice Chair for Supervision Michelle W. Bowman at the Forecasters Club of New York Luncheon, New York, on September 26, 2025.
Economic Outlook, speech given by Chair Jerome H. Powell at the Greater Providence Chamber of Commerce 2025 Economic Outlook Luncheon, Warwick, RI, on September 23, 2025.
Views on the Economy and Monetary Policy, speech given by Vice Chair for Supervision Michelle W. Bowman at the 2025 Kentucky Bankers Association Annual Convention, Asheville, NC, on September 23, 2025.