FDIC ELIMINATES ANNUAL DISCLOSURE STATEMENT REQUIREMENT

On March 18, 2019 the Federal Deposit Insurance Corporation (FDIC) issued a final rule rescinding its regulations at 12 CFR 350, entitled Disclosure of Financial and Other Information By FDIC-Insured State Nonmember Banks. Upon the effective date, all insured state nonmember banks and insured state licensed branches of foreign banks will no longer be subject to the annual disclosure statement requirements set out in the existing regulations at 12 CFR 350.

The annual disclosure under Part 350 includes balance sheet, report of income and related information that largely duplicates what is included in quarterly call reports.

The FDIC contributes this amendment to the technological advancements over the past 30 years, which provides more extensive and timely availability to individual bank information through the FDIC’s website, eliminating the need for the annual disclosure statement requirements in Part 350. Additionally, The FDIC’s removal of 12 CFR 350 brings its regulations in line with other federal banking agencies. Similar annual disclosure statement requirements have already been rescinded by the Federal Reserve Board and the Office of the Comptroller of the Currency (and former Office of Thrift Supervision) and, therefore, are no longer required by their supervised institutions.

This final rule will be effective April 17, 2019.

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