Banking and Finance Law Daily FDIC proposes to rescind annual financial disclosure requirement for state nonmember banks
News
Wednesday, October 24, 2018

FDIC proposes to rescind annual financial disclosure requirement for state nonmember banks

By Charles A. Menke, J.D.

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 According to the FDIC, the regulation is outdated and no longer necessary and therefore should be eliminated.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.

MainStory: TopStory BankingOperations DepositInsurance PrudentialRegulation

Back to Top

Interested in submitting an article?

Submit your information to us today!

Learn More
Banking and Finance Law Daily

Banking and Finance Law Daily: Breaking legal news at your fingertips

Sign up today for your free trial to this daily reporting service created by attorneys, for attorneys. Stay up to date on banking and finance legal matters with same-day coverage of breaking news, court decisions, legislation, and regulatory activity with easy access through email or mobile app.

Free Trial Learn More