A proposal to remove a requirement for certain banks that they prepare and make publicly available annual disclosure statements of financial data is the topic of a financial institution letter (FIL) issued Tuesday by the Federal Deposit Insurance Corp. (FDIC).
Last week, the FDIC proposed that Part 350 of its rules and regulations be removed and rescinded. Specifically, the section requires insured state nonmember banks and insured state-licensed branches of foreign banks to prepare, and make available to the public, annual disclosure statements consisting of certain financial data (the section doesn’t apply to insured state savings association, the FDIC pointed out). Other information, such as enforcement actions, under the rule the FDIC may also be required of individual institutions to be prepared and made public.
As its FIL-66-2018 points out, technological advances developed over the last 30 years (since the provision was adopted, in 1988) “provide ready access through the FDIC’s website to more extensive and timely information on the condition and performance of FDIC-supervised institutions, as well as enforcement actions against individual institutions, than is provided in annual disclosure statements,” the letter states.
“Therefore, the FDIC determined that Part 350 is outdated and no longer necessary,” it adds.
The agency in the FIL asserts that rescinding and removing the requirement would simplify the FDIC’s regulations “by eliminating unnecessary or redundant regulations.”
Comments on the proposal are due Nov. 26.