Financial institution regulators — including the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC) and the Federal Reserve — are facing significant downsizing. This trend raises critical questions about the safety and soundness of financial oversight and the decisions board members must make in response. Let’s explore the implications of a reduced regulatory workforce, the risks tied to longer intervals between examinations and the potential shifts in spending priorities. THE SHRINKING REGULATORY WORKFORCE: A CAUSE FOR CONCERN? The FDIC, NCUA, OCC and Federal Reserve have been pivotal in ensuring the stability and integrity of the banking and credit union sectors. However, recent directives from the current administration have led to substantial staff reductions across these agencies. The FDIC, for instance, has seen a workforce reduction of about 9% since January 2025, driven by deferred resignation The Real Impact of Downsizing Financial Regulators By Laura Zannucci, Audit Manager/Information Security Officer SBS CyberSecurity, ICBC Associate Member and Preferred Provider 20 | INDEPENDENT REPORT
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