OCC 96-16 
Subject:  Fiduciary Income Statement
Description: Addition of Schedule E to the Annual Report of Trust Assets

TO:  Chief Executive Officers of all National Banks, Department
     and Division Heads, all Examining Personnel, and Other
     Interested Parties

On December 18, 1995, the Federal Financial Institutions
Examination Council (FFIEC) approved the addition of Schedule E,
"Fiduciary Income Statement," to the annual report of trust
assets (form FFIEC 001), effective for the December 31, 1996
report date.  The new trust income statement must be completed by
those institutions with $100 million or more in total trust
assets and by all nondeposit trust companies.  The information
reported by individual institutions in Schedule E will not be
publicly available, but aggregate data will be included in the
Examination Council's annual publication, Trust Assets of
Financial Institutions.

The trust income statement was issued in proposed form for public
comment on June 30, 1995.  The version of this new schedule
adopted by the Examination Council incorporates changes made to
the proposal to address concerns expressed  by commenters about
the reporting burden.

Under the trust income schedule, institutions will generally
report trust fees by type of account, by three general categories
of expense, and by the amount of settlements, surcharges, and
other losses, gross and net, of recoveries.  If an institution's
aggregate losses are $100,000 or more in any year, individual
losses of $10,000 or more must be reported by type of account. 
The new trust income statement will be included in the annual
report of trust assets for the first time for the 1996 reporting
year and must be received by February 15, 1997.  However, because
of the short lead time, institutions may report reasonable
estimates in Schedule E for 1996 if the requested information is
not readily available.  

For further information, please contact Compliance Management at
(202) 874-4447.


                                   
Bert A. Otto
Acting Deputy Comptroller
 for Compliance Management
Date: February 8, 1996


Attachment
FFIEC Press Release on Fiduciary Income Statement
Dated December 18, 1995.