FINANCE BRIEF: Fed Ramps Demands for Regional Banks Corrections

Regulators are quietly demanding regional lenders shore up liquidity planning as part of ramped-up efforts to tighten supervision after three bank failures earlier this year.

The Federal Reserve issued multiple private warnings to lenders with assets of $100 billion to $250 billion, including Citizens Financial, Fifth Third Bancorp, and M&T Bank, according to people with knowledge of the matter. The wide-ranging notices touched on everything from lenders’ capital and liquidity to their technology and compliance, the people said.

The onslaught of such warnings — known as matters requiring attention and matters requiring immediate attention, or MRAs and MRIAs — comes ...