| Facilitating communication.
|
A banker recently heard that FDIC examiners require banks to
achieve a “quota” for filing Suspicious Activity Reports (SARs). The bank
complained to the OO that “SAR quotas” would be unreasonable and contrary to
statements made by FDIC executives in Washington, D.C. The OO confirmed
through a subject matter expert at FDIC headquarters that examiners are not
trained to expect a specific number of SARs. The FDIC Regional Director
agreed to emphasize this fact in upcoming examiner training. |
| Providing Liaison Services.
|
A small FDIC-regulated bank sells loan “packages” to a large,
non FDIC-regulated bank. Since repurchase options are involved, the small
bank carries a contingent liability for which the state banking department
requires quarterly reporting. The large bank must generate and send
reporting information to the small institution, but was being
non-responsive. The OO was asked to intercede. By communicating and
coordinating with the regulatory agency that supervises the large bank, the
OO was able to persuade the larger institution to send the needed
information on a quarterly basis going forward. |
| Finding answers and conducting
research. |
A banker asked the OO about FDIC appraisal regulations,
specifically regarding exceptions to appraisal requirements in business
loans less than $1 million. The banker wanted to know if the exception
applies if the purpose of the loan is investment; and if appraisals are
required for both the real property underlying the loan, and other real
property offered as collateral. The OO researched the FDIC Rules and
Regulations and supplied the answers. |
|
Responding to concerns about the application process.
|
A bank official wished to speak to the OO confidentially about an
application to establish a foreign branch. He needed additional information
related to the applicable sections of the FDIC Rules and Regulations before
the bank could complete and submit the application. The OO called a bank
applications subject matter expert in one of FDIC’s Regional Offices who
provided answers. The banker received the necessary information through the
OO without identifying the name or location of his bank. |
| Providing feedback at appropriate
levels in FDIC. |
If the number or nature of banker comments to the OO
regarding a regulatory issue indicates a trend, the OO will report the issue
to FDIC’s senior management for consideration and possible action. For
example, the OO has heard from numerous bankers regarding credit unions. The
concern most frequently expressed is “unfair competitive advantages,”
including tax exempt status and issues related to credit union membership
eligibility. In 2004, banker complaints regarding “unfair competition”
expanded to mortgage brokers, investment firms, insurance companies, and
mortgage loan firms. While FDIC’s authority and influence in the competitive
arena is limited, the OO continues to compile industry competition concerns
and report them to the highest levels of FDIC management.” |
