Fed, FDIC Need to Fix Bank Supervision Problems, Watchdog Says

The Federal Reserve and the Federal Deposit Insurance Corp. haven’t done enough to address bank supervision shortcomings that were exposed with the failures of Silicon Valley Bank and Signature Bank last March, a federal watchdog said.

The banking regulators drew criticism last year for failing to force SVB and Signature to address long-running interest rate risks and other problems prior to their collapse. Since then, the FDIC has issued new guidance aimed at getting its examiners to more forcefully address supervisory issues that aren’t resolved at the end of an exam cycle, and Fed officials have also spoken about toughening ...