Fed Watchdog Faults Central Bank Officials on Oversight of SVB

The Federal Reserve’s bank supervision officials failed to step up their oversight and scrutiny of risks at Silicon Valley Bank before its collapse in March, the US central bank’s internal watchdog said in a new report.

The regional bank examination approach “for SVB did not evolve with SVB’s growth and increased complexity,” the Fed inspector general said in a report released Thursday. The Board of Governors in Washington and the San Francisco Fed examiners did not effectively transition SVB to the large bank examination process, the IG said in the review of the bank’s failure.

“With the benefit of ...