FRB: Supervisory Letter SR 93-59 (FIS) on interagency uniform core Report of Examination -- FRB: Supervisory Letter

TO THE OFFICER IN CHARGE OF SUPERVISION
AT EACH FEDERAL RESERVE BANK

SUBJECT:

Interagency Uniform Core Report of Examination

Bank and thrift regulators (FRB, FDIC, OCC, and OTS) have agreed to utilize a uniform interagency common "core" Report of Examination (Report).

The Report, developed as part of the Regulatory Uniformity Project, consists of the following parts:

mandatory core section--required uniform interagency pages addressing overall conclusions and providing information on capital, asset quality, management, earnings, and liquidity (CAMEL);
optional core pages--uniform interagency pages to be utilized when necessary to support examiners' findings; and
supplemental information--agencies may add additional information including additional pages to their Report as agency interests and individual examinations require.

Staff has been working with the other bank and thrift regulators since the spring of 1992 to develop this core Report. The Reserve Banks have also provided valuable input for the development of the Report. Notably, the final product is very similar to our current report, which should allow for a smooth transition to the new format.

Instructions to accompany the proposed Report are being drafted by each agency to address agency-specific interests. Though each agency will have its own set of instructions, the interagency group has developed common definitions for parts of the core Report in order to ensure accurate and consistent presentation of that information. Federal Reserve instructions are being drafted by a Reserve Bank working group that is also drafting new examination work papers. This process will ensure consistency between the new work papers and the new Report. The proposed instructions will be forwarded to all of the Reserve Banks as soon as possible for your comments and suggestions.

Attached is an interagency policy statement signed by the supervisory principals of each agency. This statement recognizes the new Report as part of continuing efforts by the agencies to promote consistency and reduce regulatory burden. It also states that the agencies have agreed to utilize the uniform common core Report and are committed to its implementation during 1993.

We anticipate having the new examination report ready for implementation by the end of this year. Meeting this goal will depend on completing the Federal Reserve instructions for the report and electronically formatting the Federal Reserve version of the report. Notably, a Reserve Bank working group headed by the Kansas City Reserve Bank is working on both of these efforts.

If you have any questions regarding this matter, please call Steve Lovette (452-3622) or Derek Young (452-2960).

Stephen C. Schemering
Deputy Director

ATTACHMENT CAN BE OBTAINED FROM FEDERAL RESERVE BANK