Annual Report 2002 - ffiec

Task Force on
Surveillance Systems
The Task Force on Surveillance Systems
oversees the development and
implementation of uniform interagency
surveillance and monitoring
systems. The task force’s principal
objective has been to develop and
produce the Uniform Bank Performance
Report (UBPR). UBPRs
present financial statistics and peer
group comparisons for individual
banks for current and historical
periods. These reports are important
tools for completing supervisory
evaluations of bank condition
and performance, as well as for
planning on-site examinations. The
banking agencies also use the data
from these reports in their automated
monitoring systems to identify
potential or emerging problems
in insured banks.
A UBPR is produced quarterly for
each commercial bank and insured
savings bank in the United States
that is supervised by the Board of
Governors of the Federal Reserve
System, Federal Deposit Insurance
Corporation, or the Office of the
Comptroller of the Currency. UBPR
data are also available to all state
bank supervisors. While the UBPR
is principally designed to meet the
examination and surveillance needs
of the federal and state banking
agencies, the task force also makes
UBPRs available to banks and the
public on the FFIEC website.
Initiatives Addressed in 2002
Electronic Distribution of UBPRs
For many years, the surveillance
task force provided hard-copy versions
of UBPRs to individual banks
and the state banking agencies.
Effective March 2002, the surveillance
task force replaced these distributions
with an electronic distribution
of the reports on the FFIEC
public website. The task force initiated
this change to improve the efficiency
and timeliness of report distribution.
The change also provided
public users with broader access to
the reports. The electronic distribution
resulted in annual cost savings
for the agencies of approximately
$180,000.
Internet Versions of
Related Statistical Reports
In addition to the UBPRs for individual
banks, the task force produces
several supplemental statistical
reports that are used to assess
bank performance and condition.
These other reports (1) summarize
the performance of each of the
UBPR’s peer groups (determined
by size, location, and business line),
(2) detail the distribution of UBPR
performance ratios for banks in
each of these peer groups, and (3)
list the individual banks included in
each peer group. Historically, these
reports have been distributed in
hard-copy form. During 2002, the
surveillance task force added electronic
versions of these reports to
the FFIEC website. This change
broadened the distribution of these
supporting reports and contributed
to cost savings for the agencies.
New UBPR Pages for Securitization
and Fiduciary Activities
As banking activities have evolved,
Task Force on Surveillance Systems meeting.
the task force has updated the
UBPR format to highlight new or
expanding areas of focus. During
2002, the task force added three
report pages to assist examiners in
evaluating the potential risks of
securitization and asset sales
activities. For banks that have
sold or securitized assets, these
pages present detail on the volume
and composition of securitization
activities, the volume and composition
of retained credit exposures,
and the delinquencies of
and net losses on securitized
assets.
Fiduciary activities have also
become more important for some
banks. Accordingly, the task force
added two new pages to the 2002
version of the UBPR. The pages
incorporate new data on trust activities
collected on the Call Report.
Data on the volume of activity by
line, data on managed and nonmanaged
accounts, and peer data
is now included on the UBPR and
available on the FFIEC website.
Additionally, extensive confidential
data on earnings, expenses,
and losses by type of account have
been made available to the bank
supervisors.
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