U.S. bank regulator proposes curbs on agency watchdogs

WASHINGTON (Reuters) -A leading U.S. bank regulator proposed rules Tuesday that would limit how bank examiners can police and address shortcomings within lenders, as the Trump administration continued efforts to rein in supervision the banking industry has long complained is overly punitive. The Federal Deposit Insurance Corporation approved a pair of proposals that would direct its examiners to focus on core financial issues, and restrict their ability to police nonfinancial matters. The first proposal, approved by the Republican-led panel, would define "safety and soundness" for banks as any issues that pose a material financial risk to the institution. Specifically, the proposal would limit the use of so-called "matters requiring attention," where a regulator orders a bank to address pr