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#243270 - 09/10/04 04:04 PM Regulation F
Auditjg Offline
Member
Auditjg
Joined: Sep 2004
Posts: 67
I am currently in the process of auditing our due from bank accounts. One of the things I came across was the issue of reviewing correspondent banks on a quarterly basis to determine they are in fact "adequately capitalized." Our policy states we will not do business with any correspondents that are not adequately capitalized. First, should these banks be reviewed quarterly? Second, for purposes of this audit, are Federal Home Loan Banks required to be reviewed quarterly? Are these even considered "correspondent banks." Or is an annual review sufficient? 12 CFR 206.5 is the reference I'm using. Any help would be appreciated!

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#243271 - 09/10/04 05:01 PM Re: Regulation F
J2C Offline
Diamond Poster
Joined: May 2004
Posts: 1,475
Big Brother knows and that's a...
Our CFO does a quarterly analysis of this. It is presented to the BOD.
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#243272 - 09/10/04 07:32 PM Re: Regulation F
EdOils Offline
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EdOils
Joined: Jan 2004
Posts: 555
Louisiana
The FHLB does not meet the definition of a bank in section 206.2(a), so you do not have to review its financials.

Quarterly reviews of the correspondent's capital levels is required by section 206.5(B). Also, don't forget to include banks that you sell Fed Funds to.
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You gain education by reading the fine print. You gain experience by not.

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#243273 - 09/20/04 05:32 PM Re: Regulation F
Anonymous
Unregistered

Great, thanks so much!

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