Financial Update (April-June 1999)


Cover Story

Advice to the Fed

Strategies for the New Millennium


Year 2000

Did You Know?

Data Bank

The Docket

T he following is a summary of recent Federal Reserve actions. To obtain a copy of any of these announcements, contact the Atlanta Fed Service Department at (404) 498-8474. Please give the docket number or circular letter number (if applicable) when calling to request a copy. The date on the circular letter may not be the same as the Federal Reserve Board announcement.

Jan. 15 The Federal Financial Institutions Examination Council (FFIEC) issued Questions and Answers Concerning Year 2000 Contingency Planning. The document provides guidance regarding the establishment of business resumption contingency plans as a component of the risk management process for addressing Year 2000 problems. The document is available on the FFIEC's Web site at
Circular letter 501-99

Jan. 22 The FFIEC announced that the Sept. 30, 1999, Uniform Bank Performance Report (UBPR) is now being distributed to all insured commercial banks and Federal Deposit Insurance Corporation (FDIC) insured savings banks and is also available for sale to the public. The UBPR is available on the FFIEC's Web site at
Circular letter 507-99

Jan. 25 The FFIEC announced the issuance of Interagency Fair Lending Examination Procedures, which establish uniform procedures to be used by each of the FFIEC member agencies in their examinations for compliance with the Equal Credit Opportunity Act and the Fair Housing Act. The procedures are available on the FFIEC's Web site at
Circular letter 508-99

Jan. 26 The Federal Reserve Board announced that depository institutions with assets of $29 million or less as of Dec. 31, 1998, are exempt in 1999 from the data collection requirements of the Home Mortgage Disclosure Act (HMDA). HMDA requires most mortgage lenders located in metropolitan statistical areas to collect data about their housing-related lending activity.
Circular letter 506-99

March 23 The FFIEC, acting on behalf of the Board of Governors of the Federal Reserve System, the FDIC and the Office of Thrift Supervision, issued a Revised Policy for Classifying Retail Credits. The revised policy states that open-end loans, such as credit card balances, that are 180 days or more overdue should be charged off while closed-end loans, such as installment loans, should be charged off after they are 120 days delinquent. The policy offers new guidance on unsecured retail loans to borrowers who subsequently declare bankruptcy, fraudulent loans, cases where the borrower dies, and one-to-four-family residential real-estate loans and home equity loans that are delinquent 90 days or more with loan-to-value ratios greater than 60 percent. The policy details criteria that must be met before banks and thrifts may consider a delinquent open-end account current and clarifies the classification of "substandard." The policies and practices that do not require programming resources go into effect June 30, 1999. Those changes requiring programming resources should be implemented for reporting in the Dec. 31, 2000, call report or thrift financial report.
Circular letter 511-99

March 23 The Federal Reserve Board issued two final rules amending the risk-based and leverage capital standards for state member banks (Regulation H) and the risk-based capital standard for bank holding companies (Regulation Y). The final rules went into effect April 1, 1999.
Circular letter 101-99