On June 25, 2026, the Federal Deposit Insurance Corp. (FDIC) proposed amendments to parts 306 and 309 of its regulations that would significantly change how banks disclose confidential supervisory information (CSI). The proposal is intended to simplify regulatory processes while reducing barriers that institutions face when sharing supervisory information with third parties.
This proposal marks one of the most significant changes to the FDIC’s approach to CSI in years and reflects the agency’s broader deregulatory efforts. The proposed amendment would expand the circumstances under which CSI may be disclosed without prior FDIC approval and streamline the process for obtaining authorization when approval remains necessary. This proposal arrives alongside a broader cross-agency conversation about whether the current CSI regime has become an obstacle to effective banking operations and accountability.
What the Current Framework Requires
Part 309 governs the disclosure of confidential information the FDIC holds or generates, including records exempt from public disclosure under the Freedom of Information Act (FOIA). Among those exemptions is CSI, which includes examination reports, supervisory ratings, non-public enforcement actions and internal bank documents that discuss supervisory matters.
Under current rules, banks generally must obtain FDIC approval before sharing CSI with third parties outside the institution. Obtaining approval requires a formal written request articulating good cause for the disclosure of CSI. Although the FDIC will respond within 20 working days, the process creates friction in routine transactions and operations, particularly in mergers and acquisitions where a bank may need to disclose a regulatory matter to a counterparty.
While the proposal remains subject to a public comment period, the changes suggest a move toward a more practical, risk-based approach to information sharing.
Growing Support for Reform
The proposal follows increasing calls from policymakers and regulators to revisit CSI restrictions.
In January 2026, Federal Reserve Vice Chair for Supervision Michelle Bowman argued that the broad CSI designations can impede exactly the kind of operational coordination and risk-sharing that promotes a safer banking system. Similarly, Sen. Bill Hagerty urged Bowman, Comptroller of the Currency Jonathan Gould, FDIC Chairman Travis Hill and Acting Consumer Financial Protection Bureau Director Russel Vought to reform the rules governing CSI, encouraging the agencies to authorize voluntary disclosure of CSI under a confidentiality agreement to third parties with legitimate needs, as well as on a confidential basis to members of Congress.
Hill and Gould have also expressed support for reducing the burden associated with routine CSI disclosure requests. Both officials emphasized that banks regularly seek approval to share information with advisers and counterparties, making the existing process costly and time-consuming for institutions and regulators alike.
The Proposed Amendment
If finalized, the proposal could reduce administrative burden and expand when banks may disclose CSI without prior agency approval. Most notably, the proposal would allow banks to share CSI with third parties for legitimate business purposes, provided both parties enter into a confidentiality agreement. The proposal would also streamline the FDIC’s existing discretionary disclosure process as well as modernize rules governing FOIA requests and the use of FDIC-held information in legal proceedings. The rulemaking is subject to a 60-day public comment period following publication in the Federal Register.
Potential Impact
The FDIC’s proposal may ultimately have implications beyond the agency itself.
Bowman has repeatedly suggested that the Federal Reserve should reconsider its own CSI framework. If the Federal Reserve pursues similar reforms, institutions supervised by multiple banking agencies could see a more consistent and less restrictive approach to confidential information sharing across the regulatory landscape.
The most immediate practical implication is the prospect of a simplified process for sharing CSI with outside advisers and transaction counterparties. If finalized, the proposed amendments would eliminate the need for prior FDIC approval for a broad range of third-party CSI disclosures, reducing administrative burden in routine transactions and engagements involving outside advisers. The proposal could be particularly meaningful for banks involved in strategic transactions, due diligence reviews and other situations where timely information sharing is critical. The FDIC and other officials urge the public’s participation in the comment period to further develop the proposed amendment. The deadline for the public comment is Aug. 29, 2026.