BOARD OF GOVERNORS
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
DIVISION OF BANKING
SUPERVISION AND REGULATION
SR 90-26 (FIS)
July 17, 1990
TO THE OFFICER IN CHARGE OF SUPERVISION
AT EACH FEDERAL RESERVE BANK
SUBJECT: Examination and Inspection Reports
Effective immediately, a statement describing the percentage of loans reviewed in each credit-extending nonbank subsidiary should be presented on the scope of examination page of the inspection report. The percentage will represent the actual loans reviewed by Federal Reserve examiners divided by total loans in each nonbank subsidiary. Statistical sampling or any form of extrapolation would not enter into the percentage derived for this purpose. In situations where different categories of loans are housed in a nonbank subsidiary, it may be relevant to present a percentage of loans reviewed by each different category, or different percentages presented if one category of loans is actually reviewed and another category is assessed by delinquency or a delinquency formula method.
The instructions for the scope of examination page of the commercial bank examination report presently require a statement describing the actual percentage of loans reviewed, and this should continue. However, in state member banks with assets in excess of $l billion, it would appear appropriate to present the percentage of loans reviewed in each category.
Please contact Jim Garner (202-452-2704), if you have any questions.
Cross Reference: SR 90-13
SR letters | 1990