The Federal Deposit Insurance Corporation has proposed to rescind and remove its regulation (12 CFR Part 350) relating to the disclosure of financial and other information by FDIC-insured state nonmember banks. According to the FDIC, the regulation is outdated and no longer necessary and therefore should be eliminated. Comments on the proposed rulemaking are due by Nov. 26, 2018.
In general, the regulation the FDIC proposes to eliminate requires FDIC-insured state nonmember banks and FDIC-insured state-licensed branches of foreign banks to prepare, and make available on request, annual disclosure statements consisting of: (1) required financial data comparable to specified schedules in the Consolidated Reports of Condition and Income filed for the previous two years; (2) information that the FDIC may require of particular banks, such as the disclosure of enforcement actions; and (3) other information at the discretion of the bank. The regulation also permits the use of certain alternatives to the Call Report as a disclosure statement.
The financial and other information that has been subject to disclosure under the regulation is publicly available through the FDIC’s website, the agency stated, with technological advancements providing the public with ready access to more extensive and timely information on the condition and performance of individual banks, thereby obviating the need for the annual disclosure statement requirements of the regulation. The FDIC therefore believes that the reduction will not have a material effect on customers, investors, or counterparties, but will lessen the burden the FDIC imposes on the institutions subject to the regulation.
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