The supervisory staffs of the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Conference of State Bank Supervisors have developed the attached recommended practices to assist in continued implementation of the principles and goals of the Nationwide State and Federal Supervisory Agreement adopted in 1996 and to enhance the overall state-federal coordinated supervision of state-chartered banks.
The Nationwide State and Federal Supervisory Agreement established a series of principles to promote coordination in the supervision of interstate banks. Developments since the adoption of the Agreement continue to underscore the importance of effective supervisory coordination. The State Federal Working Group, an interagency group of state bank commissioners and senior officials from the FDIC and the Federal Reserve, has developed these recommended practices to reiterate and reaffirm a common sense approach for collaboration. The practices incorporate successful procedures and techniques used by the Federal Reserve in working collaboratively with the states in supervising state-chartered banking organizations. As such this document reinforces the longstanding commitment of federal and state agencies to provide efficient, effective and seamless oversight of state banks of all sizes, including those institutions that operate in more than one state. These principles are equally applicable and important with respect to communication and coordination of the supervision of state-chartered banks operating within a single state.
Reserve Banks are asked to distribute this SR letter and the Recommended Practices for the Seamless Supervision of State-Chartered Banks to their supervisory and examination staff. Questions may be directed to Richard Watkins, Manager, Community Banking Organizations, at (202) 452-3421, or Molly Wassom, Associate Director, Community and Regional Banking Organizations, at (202) 452-2305.