Supervision and Regulation Letters
Questions and Answers on Interagency Advisory on Interest Rate Risk Management
SUPERVISION AND REGULATION
|SUBJECT:||Questions and Answers on Interagency Advisory on Interest Rate Risk Management|
On January 11, 2010, the Federal Reserve and the other financial regulators1 published an Advisory on Interest Rate Risk Management (SR letter 10-1, "Interagency Advisory on Interest Rate Risk"). Since its release, examiners and the industry have requested clarification of some specific recommendations in the advisory. In response to these questions, the financial regulators jointly developed the attached frequently asked questions (FAQs) document that provides interpretive guidance on some of these issues.
The advisory, as well as these FAQs, are intended for use by banking organizations and supervisors as they assess organizations' management of interest rate risk. While the questions and answers are applicable to all institutions, many of these questions originated from community banking organizations. This guidance should be applied, as appropriate, to all banking organizations supervised by the Federal Reserve, taking into account each organization's size, nature, and balance sheet complexity.
This letter and the attached FAQs should be distributed to state member banks, bank holding companies, savings and loan holding companies, and foreign banking organizations with U.S. offices supervised by the Federal Reserve, as well as to supervisory and examination staff. For questions regarding this guidance, please contact Mary Aiken, Manager, Market, Liquidity, Credit, and Other Risk Policy, at (202) 721-4534; or Ricardo Crumble, Senior Supervisory Financial Analyst, Risk, at (202) 728-5852. In addition, questions may be sent via the Board's public website.2
Michael S. Gibson
Division of Banking
Supervision and Regulation
- The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, and Federal Financial Institutions Examination Council (FFIEC) State Liaison Committee. Return to text
- See http://www.federalreserve.gov/apps/contactus/feedback.aspx. Return to text