Seal of the Board of Governors of the Federal Reserve System BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM

WASHINGTON, D. C.  20551
DIVISION OF BANKING
SUPERVISION AND REGULATION
SR 01-19 (SUP)
August 10, 2001

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

SUBJECT:   Reports of Examination of Community Banking Organizations

                      Developments in technology, the expansion of financial services, and a risk-focused approach to examinations necessitate increased flexibility in structuring and organizing the content of reports of examination.  Accordingly, Reserve Bank and Board staff have collaborated on the development of guidance on the format of reports of examination for community banking organizations.  The guidance focuses on "content" instead of "pages," distinguishes between mandatory content versus content that is optional if the bank's condition or circumstances warrant, and permits examiner discretion in the arrangement of certain content.  With the issuance of this letter, SR letter 90-13, Revised Examination and Inspection Reports, is rescinded.

                      The revisions are intended to provide flexibility to examiners in customizing and streamlining the report to better focus examination findings on matters of risk and importance to the bank's overall financial condition.  These revisions should improve communications with bank management and boards of directors and minimize burden on banking organizations.  The revisions require incorporation of the findings of specialty examinations into overall safety and soundness conclusions to provide a more comprehensive safety and soundness assessment.  The scope and depth of matters discussed under each content heading, whether required or optional, will vary based upon the issues present as well as the severity of such issues.  Banks in sound financial condition with no material issues are expected to warrant more abbreviated discussion.  As always, a report of examination should contain sufficient documentation to support any significant findings or issues, supervisory conclusions, and examiner recommendations. 

                      A sample report of examination template is attached to this letter for illustration.  Further, guidance on completing the report is attached and is consistent with and supplements the report format requirements set forth in the September 9, 1993 Interagency Policy Statement on the Uniform Common Core Report of Examination. 1

                      Should you have any questions regarding this matter, you may contact Molly S. Wassom, Associate Director (202/452-2305), J. Thomas Keady, Manager (202/728-5885), Robert G. Walker, Senior Supervisory Financial Analyst (202/452-3429), or Richard C. Watkins, Supervisory Financial Analyst (202/452-3421).


Richard Spillenkothen
Director

Attachment (401 KB PDF)

Cross-Reference:
SR letters 00-3, 95-51, 95-12, 94-46, and 93-59
Commercial Examination Manual, Section 6000
Bank Holding Company Supervision Manual, Section 5010

Supersedes:  SR 90-13


Notes:

1.  Refer to SR letter  93-59. Additional guidance on the content of the report of examination and the examination process may found in SR letters  00-3, 95-51, 95-12, and 94-46Return to text


SR letters | 2001