Supervisory Examination

Supervisory examination is the process by which financial regulators, such as bank supervisors or the Federal Reserve and the Office of the Comptroller of the Currency in the United States, review a regulated firm's systems, controls, and records to confirm it is operating safely and following the rules. For AI governance, examiners are increasingly asking how firms inventory and validate models, document their use of third-party AI vendors, and monitor outcomes for consumers. Findings from these exams can lead to formal supervisory actions, so compliance teams should expect AI systems to be reviewed as part of routine oversight rather than as a special project.

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ResearchUS2026-10-19

Banking Examiners Are Now Asking Banks to Prove AI Agents Can Be Audited

U.S. banking regulators have expanded AI examination programs to probe how banks constrain, monitor, and audit AI agent systems. Supervisors are asking whether banks can produce decision logs, document approval gates, and name accountable owners for agent deployments. Banks that cannot answer these questions face escalating supervisory risk.

banking AI agents regulatory scrutiny auditability model risk management supervisory examination