The FDIC Board of Directors on July 22, 1997, adopted the Federal Financial Institutions Examination Council's (FFIEC) recently revised supervisory policy statement on securities lending. A copy of the policy statement is included in the attached Federal Register notice.
The policy statement provides general guidance to institutions that are lending their securities or their customers= securities. It also requires institutions to establish written policies and procedures for their securities lending operations. The policy statement addresses recordkeeping, administration, credit analysis, credit limits, collateral management and the use of finders.
Three minor revisions have been made to the policy statement: Call Report instructions have been removed and replaced by a reference to the Call Report manual; references to certain exemptions under the Employee Retirement Income Security Act have been corrected; and a footnote listing eligible collateral under the Federal Reserve Board's Regulation T has been deleted due to a 1996 amendment to Regulation T.
For more information, please contact Keith Ligon, Chief of the Policy Section of the Capital Markets and Trust Branch, on (202) 898-3618 or Kenton P. Fox, Senior Capital Markets Specialist in the Capital Markets and Trust Branch, on (202) 898-7119, Division of Supervision; or Jamey Basham, Counsel in the Legal Division, on (202) 898-7265.
Distribution: FDIC-Supervised Banks (Commercial and Savings)
NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, N.W., Room 100, Washington, D.C. 20434 ((703) 562-2200 or 800-276-6003).