Financial Update (July-Septemer 1997)
The 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 a circular letter may not be the same as the Federal Reserve Board announcement.
On April 30, the Federal Reserve Board announced the start of a new weekly publication that lists applications and notices, together with the deadline for comment, that have been filed under the Bank Holding Company Act or the Change in Bank Control Act. Circular letter: 530-97.
On May 5, the Federal Financial Institutions Examination Council's (FFIEC) Task Force on Supervision issued an interagency statement for the banking industry and federal examiners intended to focus attention on the critical issues financial institutions need to address quickly to resolve Year 2000 computer problems and avoid major service disruptions. Circular letter: 531-97.
On May 7, the Federal Reserve Board issued final technical amendments to Appendix A of Regulation CC. The amendments conform Appendix A to a realignment in Federal Reserve check-processing regions by adding the First District routing numbers formerly assigned to the Lewiston, Maine, check processing region to the Boston head office. The final amendments are effective Oct. 27, 1997. Circular letter: 532-97.
On May 9, the Federal Reserve Board announced adoption of an interpretation to Regulation Q (Prohibition Against Payment of Interest on Demand Deposits) that will provide an exception to the limitation on premiums given on demand deposits. The interpretation is effective May 15, 1997. Circular letter: 533-97.
On May 20, the Federal Reserve Board issued an amendment to Regulation C (Home Mortgage Disclosures) making final an interim rule that raised the exemption level for small institutions. The final rule is effective July 1, 1997, and applies to all data collection in 1997. Circular letter: 534-97.
On June 25, the Federal Reserve Board announced amendments to Regulation D and Regulation I to define the location of a depository institution to facilitate interstate branching. The amendments clarify the Federal Reserve District where a depository institution is eligible for Federal Reserve membership and the location of a depository institution's reserve account. The final amendments are effective Oct. 1, 1997. Circular letter: 538-97.
On July 2, the Federal Reserve Board announced guidelines on sound risk management practices for private banking activities such as personalized investment services for selected customers. Additionally, the Federal Reserve will distribute an updated Bank Secrecy Act examination manual. Circular letter: 539-97.
On July 23, the FFIEC announced the publication of "Interagency Questions and Answers Regarding Flood Insurance," a reference document on the federal flood insurance legislation. Circular letter: 114-97.
On Aug. 1, the Federal Reserve Board requested comment on a proposal to amend its risk-based and Tier 1 leverage capital guidelines for state member banks and bank holding companies to address the treatment of servicing assets on both mortgage assets and financial assets other than mortgages. The same proposed rule is being issued by the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the Office of Thrift Supervision. Comment is due at the Board on or before Oct. 6, 1997, and should refer to Docket No. R-0976. Circular letter: 115-97.
On Aug. 4, the FFIEC announced the availability of data about 1996 mortgage lending activity in metropolitan areas and released analyses of nationwide summary statistics regarding lending patterns. The data reflect lending activity for more than 9,300 institutions covered by the Home Mortgage Disclosure Act that reported data to member agencies of the FFIEC and to the Department of Housing and Urban Development. Circular letter: 544-97.