Bankowość · 15.02.1995

Annual Independent Audits and Reporting Requirements

Section 314 of the Riegle Community Development and Regulatory Improvement Act of 1994 (RCDRIA) amends sections 36(i) and 36(g)(2) of the Federal Deposit Insurance Act (FDI Act). Section 36 of the FDI Act is generally intended to facilitate early identification of problems in financial management through annual independent audits, assessments of the effectiveness of internal controls and of compliance with designated laws and regulations, and more stringent reporting requirements. Section 314(a) provides relief from certain duplicative reporting under section 36 of the FDI Act for sound, well managed insured depository institutions with over $9 billion in total assets which are subsidiaries of multibank holding companies. Section 314(b) requires the Corporation to notify a large insured depository institution in writing if it decides a review by an independent public accountant of such institution's quarterly financial reports is required. [[Page 8584]] The Corporation's regulations governing annual independent audits implement section 36 of the FDI Act and this proposed amendment seeks to conform the regulations to the amended statute. In addition, the FDIC proposes several minor,