FFIEC Releases 2021 Annual Report

The Federal Financial Institutions Examination Council (FFIEC) released its 2021 Annual Report this week. Click here to read the full report. 

Introductory Message from FFIEC Chairman Todd Harper

I am honored to represent the National Credit Union Administration on and currently. Lead the Federal Financial Institutions Examination Council. So, on behalf of the Council, I am pleased to present our 2021 FFIEC annual report, which reviews the Council’s activities and those of its task forces and its working groups.

Throughout the last year, the Council member agencies continued to collaboratively address common issues affecting our regulated entities and the consumers they serve. Even before becoming the Council’s chair in April 2021, my regulatory philosophy has been that effective financial institutions’ regulators need to be:

• Fair and forward-looking;
• Innovative, inclusive, and independent;
• Risk focused and ready to act expeditiously when problems are identified at financial institutions; and
• Engaged appropriately with all stakeholders to develop effective regulation and efficient supervision.

This regulatory philosophy aligns with the work of the Council in promoting uniformity in the regulation, reporting, and supervision of financial institutions.

During 2021, the Council continued its work related to ensuring a smooth transition away from the LIBOR, strengthening the financial sector’s cybersecurity infrastructure, and supporting examiner education. Additionally, we prioritized two other matters. First, we renewed our focus on appraisal system regulatory governance, infrastructure, equity, and quality. Second, we broadly examined economic equity and justice within the banking system.

In its second year, the COVID-19 pandemic continued to inform our discussions and virtual examination processes. And, the Council notably maintained its focus on the supervisory area of cybersecurity and updated chapters in the Council’s examination manual. On the Bank Secrecy Act and anti-money laundering. We also introduced new communications tools and began work to modernize the Council’s website.

To read the entire message from Chairman Harper, please click here and navigate to page 11 of the pdf.