Fed Ramps Up Demands for Corrective Actions by Regional Banks

  • Citizens, Fifth Third, M&T are among lenders getting orders
  • Regulators seek to tighten supervision following bank failures
Tarullo: We May See Some Regional Banks Atrophy
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US regulators are quietly demanding that regional lenders shore up their liquidity planning, part of a ramp-up in efforts to tighten supervision in the wake of three bank failures earlier this year.

The Federal Reserve has issued a slew of private warnings to lenders with assets of $100 billion to $250 billion, including Citizens Financial Group Inc., Fifth Third Bancorp and M&T Bank Corp., according to people with knowledge of the matter. The wide-ranging notices have touched on everything from lenders’ capital and liquidity to their technology and compliance, the people said, asking not to be identified discussing confidential supervisory information.