TO THE OFFICER IN CHARGE OF SUPERVISION AT EACH FEDERAL RESERVE BANK
Attached is a copy of the Press Release and Policy
Statements on supervisory initiatives to implement the interagency
program announced on March 10, 1993. Taken together, these steps
should strengthen supervision in a way that is consistent with
removing any unintended impediments to lending to creditworthy
businesses and individuals. These initiatives address in-substance
foreclosures, returning nonaccrual loans to accrual status,
regulatory reporting requirements for sales of other real estate
owned, review and classification of commercial real estate loans,
the supervisory definition of special mention assets, and
coordination of holding company inspections with subsidiary bank
and thrift examinations. The aspects of this package dealing with
regulatory reporting are fully consistent with generally acceptable
accounting principles. A separate press release was issued today
which addresses initiatives on consumer complaints and fair lending
matters and will be distributed to the Reserve Banks by the
Division of Consumer and Community Affairs.
This document is being sent to each Reserve Bank
separately by the Board's Office of the Secretary with instructions
that a copy be forwarded to the chief executive officer of each
state member bank and bank holding company in your district.
It is important that a copy of these documents be made
available to each supervisory official and examiner at the Reserve
Bank as soon as possible. Also, please ensure that these policies
are fully understood and effectively implemented by all Reserve
Bank examiners and supervision staff.
Board staff stands ready to answer any questions and to
cooperate or assist in any training or instruction that you believe
is necessary to fully carry out these supervisory policies.
Director ATTACHMENTS MAY BE OBTAINED FROM FEDERAL RESERVE BANK
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