Fed to Release More Information about Banking Applications
The Federal Reserve Board later this year will start publishing a semiannual report with aggregate data and other information about banking applications it receives.
First report to come later this year
The Board evaluates applications in light of statutory factors, including financial condition, performance under the Community Reinvestment Act (CRA), and managerial experience. If it approves the application, the Board makes a public announcement.
Enhanced transparency a main purpose
As it announced the new report, the Board also released guidance describing common issues that have led to recent withdrawal of applications. Some of those issues include less-than-satisfactory supervisory ratings for safety and soundness, consumer compliance, or CRA; inadequate compliance with the Bank Secrecy Act; and concerns regarding the financial condition or management of the proposed organization.
February 25, 2014