Division of Supervision and Consumer Protection's Regional Office Structure – Footnotes
September 28, 2004
Audit Report No. 04-040
Footnote 1: The two area offices each report to a regional office; however, each office has maintained most of the functional responsibilities of a regional office.
Footnote 2: The FDIC is the primary federal regulator for state-chartered banks that are not members of the Federal Reserve System. The Office of the Comptroller of the Currency (OCC) is the primary federal regulator for all national banks. The Board of Governors of the Federal Reserve System (FRB) is the primary federal regulator for state-chartered banks that are members of the Federal Reserve System. The Office of Thrift Supervision (OTS) is the primary federal regulator for federal and state-chartered savings associations. Under the Federal Deposit Insurance Act, the FDIC may perform special examinations of any insured depository institution when deemed necessary for insurance purposes.
Footnote 3: Banks are required to submit applications to their primary federal regulator for certain activities that include, among other things, opening or relocating branch offices, changing control of the bank, and merging with or acquiring another financial institution.
Footnote 4: A community bank is a small local bank that serves the needs of one community or a series of communities in a close geographic area. Typically, these banks have assets totaling under $1 billion.
Footnote 5: Bank Secrecy Act, Title II, Reports of Currency and Foreign Transactions, requires a financial institution to file a Currency Transaction Report with the Internal Revenue Service for each cash transaction over $10,000 or multiple cash transactions by an individual in 1 business day, aggregating over $10,000.
Footnote 6: The Resolution Trust Corporation, or RTC, was a federal agency created by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to oversee the liquidation of assets of insolvent savings and loan associations.
Footnote 7: As of the date of this report, four FDIC-insured banks had failed in 2004.
Footnote 8: The FDIC defines a problem financial institution as any insured institution that has been assigned a composite rating of "4" or "5" under the Uniform Financial Institution Rating System by its primary federal regulator or by the FDIC if it disagrees with the primary federal regulator's rating.
Footnote 9: FDIC Outlook, fall 2003 edition, Chicago Regional Perspectives, Improved Security is Vital as Information Technology Grows More Complex. FDIC Outlook is published quarterly by the FDIC's Division of Insurance and Research as an information resource on banking and economic issues for insured financial institutions and financial institution regulators.
Footnote 10: Office of Inspector General, Audit Report No. 04-022, FDIC's Information Technology Examination Program, June 15, 2004.
Footnote 11: Office of Inspector General, Audit Report No. 03-037, The FDIC's Implementation of the USA PATRIOT Act, September 5, 2003.
Footnote 12: Division of Supervision Memorandum, Transmittal Number 2002-017, March 27, 2002.
Footnote 13: The FDIC dedicated eight examiners to the largest insured depository institutions in September 2002. The examiners work closely with the resident examination staff of primary supervisors and the institutions' personnel. They have access to information about the risk and trends in these institutions.
Footnote 14: Division of Supervision and Consumer Protection, Memorandum System, Transmittal No. 04-013, Relationship Manager Pilot Program, April 2, 2004.
Footnote 15: Call Reports are sworn statements of a bank's financial condition that are submitted to supervisory agencies quarterly in accordance with federal regulatory requirements. Call Reports consist of a balance sheet and income statement and provide detailed analyses of balances and related activity.
Footnote 16: Financial institution regulators use the Uniform Financial Institutions Rating System to evaluate a bank's performance. Six areas of performance are evaluated and given a numerical rating of "1" through "5," with "1" representing the least degree of concern and "5" the greatest degree of concern. The six performance areas identified by the CAMELS acronym are: Capital adequacy, Asset quality, Management practices, Earnings performance, Liquidity position, and Sensitivity to market risk.
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