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Financial Institution Letter

Supervisory Insights Journal

Winter 2013 Issue Now Available
December 19, 2013
Notes
 
Summary: The Winter 2013 issue of Supervisory Insights features articles of interest to examiners, bankers, and supervisors. These articles address the importance of effective interest-rate risk management, results of the FDIC's Credit and Consumer Products/Services Survey, and the new Basel III definition of capital. The publication is available at http://www.fdic.gov/regulations/examinations/supervisory/insights/index.html .

Statement of Applicability to Institutions with Total Assets under $1 Billion: The information contained in this issue of Supervisory Insights may be of general interest to FDIC-supervised financial institutions, but it is not supervisory guidance.

Highlights:
  • "Industry Trends Highlight Importance of Effective Interest-Rate Risk Management" looks at how changes in the banking industry's asset mix and funding profile have led to increased interest-rate risk (IRR) exposure. The article highlights supervisory expectations for IRR management and suggests strategies banks can use to assess and mitigate this exposure.
  • "Lending Trends: Results from the FDIC's Credit and Consumer Products/Services Survey" shares recent survey results relating to loan growth, credit underwriting, factors influencing banks' ability and willingness to lend, and use of loan workouts.
  • "The New Basel III Definition of Capital: Understanding the Deductions for Investments in Unconsolidated Financial Institutions" discusses how the new regulatory capital rules require a deduction from capital, under certain circumstances, for a portion of a bank's investments in the capital of unconsolidated financial institutions. This article provides examples of how to calculate the deduction.
  • Suggestions for article topics and requests for permission to reprint articles should be e-mailed to supervisoryjournal@fdic.gov . Requests for print copies should be e-mailed to publicinfo@fdic.gov .

Distribution:
FDIC-Supervised Institutions

Suggested Routing:
Chief Executive Officer
Compliance Officer

Note:
FDIC Financial Institution Letters (FILs) are available on the FDIC's Web site at http://www.fdic.gov/news/financial-institution-letters/2013/index.html .

To receive FILs electronically, visit http://www.fdic.gov/about/subscriptions/index.html .

Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).

Additional Related Topics:

  • Interest-Rate Risk Management
  • Credit and Consumer Products/Services Survey
  • Basel III
FIL-60-2013

Last Updated: December 19, 2013