Required Reports of Indebtedness
by Executive Officers and Principal Shareholders
The Federal Financial Institutions Examination
Council (FFIEC) has revised the format of form FFIEC
004, "Report on Indebtedness of Executive Officers
and Principal Shareholders and Their Related Interests
to Correspondent Banks." The revised form is enclosed.
Changes to form FFIEC 004 respond to banking industry
suggestions for improvements. The revisions simplify
the form and clarify its instructions, making it
more user-friendly. The information to be reported
on the form has not changed.
Form FFIEC 004 may be used to meet the reporting
requirements of Title VIII of the Financial Institutions
Regulatory and Interest Rate Control Act of 1978.
The Act requires each bank's executive officers
and principal shareholders to submit an annual report
to their board of directors on their indebtedness,
and that of their related interests, to correspondent
banks. The use of form FFIEC 004 is optional in
meeting Title VIII reporting requirements. The information
requested on this form may be submitted to an insured
institution's board of directors on any form containing
identical information, including the previous version
of form FFIEC 004.
In addition, Part 349 of the FDIC's rules and
regulations requires a bank to disclose to the public,
upon request, the names of its executive officers
and principal shareholders who have indebtedness
to their own bank, or to correspondent banks, that
exceeds a specified amount. Form FFIEC 004 includes
information that can be used to meet the disclosure
requirement on indebtedness to correspondent banks.
The enclosed form FFIEC 004 may be used for calendar
year 1996. Detailed instructions on preparing the
form are included on the back. The reports should
be retained by your bank, not forwarded to the FDIC.
Please direct any questions to your FDIC Division
of Supervision regional office.
Nicholas J. Ketcha Jr.
Distribution: Insured Commercial Banks and FDIC-Supervised
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)