FFIEC Annual Report 1999

Task Force on Supervision meeting.
their assistance in identifying the
agencies’ most critical new needs
for supervisory information. From
these ongoing discussions and
from separate efforts to identify
and narrow regulatory reporting
differences among banks, savings
associations, and bank holding companies,
the task force expects to
propose revisions to the existing
bank regulatory reporting requirements
for the Council’s consideration
in the first quarter of 2000.
These reporting changes would be
targeted for implementation in
March 2001.
Finally, on September 3, 1999, the
three banking agencies requested
public comment on a proposal to
extend their authority under the
Paperwork Reduction Act of 1995 to
collect the Country Exposure Report
and the Country Exposure Information
Report (Forms FFIEC 009 and
009a) and to clarify the instructions
that relate to credit derivatives. The
agencies received one comment
letter about the treatment of credit
derivatives. The task force is currently
working with the agencies’
international supervisory staffs to
address the commenter’s recommendations
in order to move forward
with the proposal in the first
quarter of 2000.
Task Force on Supervision
The Task Force on Supervision has
oversight responsibility for matters
relating to the supervision and
examination of depository institutions.
It provides a forum for the
agencies that supervise banks,
thrifts, and credit unions to promote
quality, consistency, and effectiveness
of examination and supervisory
practices and to minimize regulatory
burden. While significant issues
are referred, with recommendations,
to the Council for action, the Council
has delegated to the task force the
authority to make certain decisions
and recommendations, provided
all task force members are in
agreement.
Task force members are the senior
supervisory officials of the constituent
agencies. Meetings are held
regularly to address and resolve
common supervisory issues. The
task force has a standing subcommittee
to address information system
and technology issues as they
relate to financial institution supervision.
Another task force subcommittee
reviews issues pertaining to
regulatory capital. In addition, ad
hoc working groups are created to
handle particular projects and
assignments.
Activities of the Task Force
During 1999, the task force and its
various ad hoc working groups and
subcommittees were involved in
numerous projects and activities.
Special attention was focused on,
and major accomplishments were
achieved in, matters concerning the
rollover to the Year 2000.
Year 2000 Supervision Program
Throughout 1999, the FFIEC agencies
continued their ongoing efforts
to ensure the readiness of supervised
financial institutions’ automated
information systems, and
those of their customers, for the
century date change. The extensive
final phase of the FFIEC’s Year 2000
supervisory program included the
issuance of additional policy guidance,
the conduct of on-site examinations
and intensive monitoring of
financial institutions and markets,
contingency planning to respond to
disruptions or problems that could
occur, and event management for
the year-end rollover period. The
program focused on promoting
industry and consumer awareness;
establishing targets for the completion
of testing, implementation, and
contingency plans; and providing
feedback to institutions, in part
through examinations, regarding
their progress and identification of
outstanding issues.
Policy statements. Through the
FFIEC, banking supervisors provided
critical guidance in the form
of periodic policy statements beginning
in 1996. During 1999, the
FFIEC issued statements on customer
communications, including
a consumer checklist on Year 2000
suggestions; business resumption
planning; temporary growth of
assets; fraud prevention; and preservation
of information security.
To better understand the issues that
market participants faced and to
foster more effective communication,
the agencies worked closely
with industry trade groups, including
the Bank Administration Insti-
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