PRESS RELEASE
Federal Deposit Insurance Corporation
September 10, 1996
Media Contact:
Sally Kearney (202) 898-8675
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-73-96
FDIC BOARD STREAMLINES FAIR HOUSING REQUIREMENTS,
CUTS DUPLICATION IN DERIVATIVES POLICY
FOR IMMEDIATE RELEASE
The FDIC Board of Directors today proposed streamlining FDIC regulations and policies
in two areas: fair housing and derivatives. The regulatory reduction efforts are part of
the FDIC's review of its regulations and written policies under Section 303 of the Riegle
Community Development and Regulatory Improvement Act (CDRIA) of 1994.
The Board approved a proposed rule to amend the FDIC's fair housing regulation, Part
338. The proposal is designed to make the FDIC's regulations consistent with those of
the other federal bank and thrift regulators, and to eliminate the FDIC's fair housing
recordkeeping and reporting requirements that currently exceed those of the Federal
Reserve Board. The proposed rule removes FDIC recordkeeping requirements that
serve as a substitute monitoring program permitted by Regulation B of the Federal
Reserve Board, and removes the data collection and reporting requirements that
exceed those of Regulation C of the Federal Reserve Board. The proposed rule will also
require insured state nonmember banks to collect and report the reasons for any
denials of home loan applications.
The rule gives banks more flexibility in the use of fair housing posters and advertising
slogans, providing the option of using either the "Equal Housing Opportunity" poster
required by the Department of Housing and Urban Development (HUD) or the FDIC's
"Equal Housing Lender" poster. Banks also will have the option of using the "Equal
Opportunity Lender" slogan in lieu of "Equal Housing Lender" in oral and written
advertisements. The choice of using either slogan is designed to give flexibility to
institutions that offer a broader variety of loan products than mortgage loans, such as
auto, consumer, and credit card extensions of credit.
Federal Deposit Insurance Corporation
September 10, 1996
Media Contact:
Sally Kearney (202) 898-8675
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-73-96
FDIC BOARD STREAMLINES FAIR HOUSING REQUIREMENTS,
CUTS DUPLICATION IN DERIVATIVES POLICY
FOR IMMEDIATE RELEASE
The FDIC Board of Directors today proposed streamlining FDIC regulations and policies
in two areas: fair housing and derivatives. The regulatory reduction efforts are part of
the FDIC's review of its regulations and written policies under Section 303 of the Riegle
Community Development and Regulatory Improvement Act (CDRIA) of 1994.
The Board approved a proposed rule to amend the FDIC's fair housing regulation, Part
338. The proposal is designed to make the FDIC's regulations consistent with those of
the other federal bank and thrift regulators, and to eliminate the FDIC's fair housing
recordkeeping and reporting requirements that currently exceed those of the Federal
Reserve Board. The proposed rule removes FDIC recordkeeping requirements that
serve as a substitute monitoring program permitted by Regulation B of the Federal
Reserve Board, and removes the data collection and reporting requirements that
exceed those of Regulation C of the Federal Reserve Board. The proposed rule will also
require insured state nonmember banks to collect and report the reasons for any
denials of home loan applications.
The rule gives banks more flexibility in the use of fair housing posters and advertising
slogans, providing the option of using either the "Equal Housing Opportunity" poster
required by the Department of Housing and Urban Development (HUD) or the FDIC's
"Equal Housing Lender" poster. Banks also will have the option of using the "Equal
Opportunity Lender" slogan in lieu of "Equal Housing Lender" in oral and written
advertisements. The choice of using either slogan is designed to give flexibility to
institutions that offer a broader variety of loan products than mortgage loans, such as
auto, consumer, and credit card extensions of credit.
The Board also voted to approve a memorandum and resolution rescinding the FDIC's
Policy Statement, adopted on November 13, 1979, regarding the use of interest rate
futures contracts, forward contracts and standby contracts. Since the Policy Statement
was issued, the FDIC has offered more comprehensive guidance on both oversight of
derivative instruments and interest rate risk management, making the 1979 Policy
Statement outmoded and duplicative.
The FDIC's Financial Institution Letter 34-94, Examination Guidance on Financial
Derivatives (May 18, 1994); the Joint Policy Statement: Interest Rate Risk, 61 Fed. Reg.
33,166, issued June 26, 1996, with the other bank regulatory agencies; and the
instructions for the Consolidated Reports of Condition and Income (Call Report) all
provide more comprehensive guidance that supersedes the 1979 Policy Statement.
Policy Statement, adopted on November 13, 1979, regarding the use of interest rate
futures contracts, forward contracts and standby contracts. Since the Policy Statement
was issued, the FDIC has offered more comprehensive guidance on both oversight of
derivative instruments and interest rate risk management, making the 1979 Policy
Statement outmoded and duplicative.
The FDIC's Financial Institution Letter 34-94, Examination Guidance on Financial
Derivatives (May 18, 1994); the Joint Policy Statement: Interest Rate Risk, 61 Fed. Reg.
33,166, issued June 26, 1996, with the other bank regulatory agencies; and the
instructions for the Consolidated Reports of Condition and Income (Call Report) all
provide more comprehensive guidance that supersedes the 1979 Policy Statement.