Report on Indebtedness of Executive Officers and Principal Shareholders and their Related Interests to Correspondent Banks
The following is a link to the FFIEC web site. The Federal Reserve Board does not maintain these forms and instructions.
The Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the Federal Deposit Insurance Corporation (collectively the "agencies") discontinued the Report on Indebtedness of Executive Officers and Principal Shareholders and their Related Interests to Correspondent Banks (FFIEC 004), effective with the December 31, 2006, report date. The agencies required that banks retain the FFIEC 004 data from all principal shareholders and executive officers. The purpose of this report was to ascertain whether there were any indications of preferential lending to any executive officer or principal shareholder by a correspondent bank.
Section 601 of the Financial Services Regulatory Relief Act of 2006 (Relief Act) removed several statutory reporting requirements relating to insider lending by insured banks and savings associations (institutions). One of these amendments, which became effective on October 13, 2006, eliminated the statutory requirement that an executive officer or principal shareholder of an institution file an annual report with the institution's board of directors during any year in which the officer or shareholder, or a related interest of the officer or shareholder, has an outstanding extension of credit from any of the institution's correspondent banks.
In previous years, the FFIEC distributed a copy of the FFIEC 004 report to institutions for use by their executive officers and principal shareholders in complying with the annual reporting requirements pertaining to extensions of credit from correspondent banks. Because the Relief Act eliminated the specific statutory reporting requirement for this information, the federal banking agencies no longer require executive officers and principal shareholders to submit an annual report on indebtedness to correspondent banks to their boards of directors.