Bank Boards Targeted for Risk Lapses in Disputed FDIC Proposal

The Federal Deposit Insurance Corp. wants bank board directors to take a more direct role in risk management following the collapses this year of Silicon Valley Bank, Signature Bank, and First Republic Bank.

The proposal, unveiled Thursday, would also require banks to establish written risk profiles and risk appetite statements to guide their activities, with boards setting risk limits banks should be able to follow based on those documents.

The FDIC approved publishing the proposal in a 3-2 vote Oct. 3.

The proposed guidance follows a series of bank failures this spring that highlighted poor risk management ...