How often does the FDIC typically conduct examinations of insured banks?

The FDIC conducts examinations of insured banks regularly based on risk factors, which is determined through a risk-based approach. This means that the frequency of examinations is not fixed but varies according to several critical elements, including the bank's size, complexity, risk profile, and overall financial condition. Higher-risk institutions or those exhibiting signs of potential trouble may be examined more frequently to ensure compliance with applicable regulations and to protect depositors.

This approach allows the FDIC to prioritize resources and focus on banks that present a greater risk to the Deposit Insurance Fund, thereby enhancing the safety and soundness of the banking system as a whole. By using risk factors to determine examination frequency, the FDIC can be more adaptive and responsive in overseeing institutions that may require closer scrutiny, fostering a better regulatory environment.