Federal Deposit Insurance Corporation
550 17th Street NW, Washington, DC 20429 Division of Supervision
International Banking
FIL-134-98
December 8, 1998
TO: CHIEF EXECUTIVE OFFICER
SUBJECT: Interagency Country Risk Management Study
Attached is an executive summary of the findings of a study by the Interagency Country
Exposure Review Committee (ICERC) on the country risk management practices of U.S. banks.
ICERC comprises examiners from the Federal Deposit Insurance Corporation (FDIC), the Office
of the Comptroller of the Currency (OCC), and the Board of Governors of the Federal Reserve
System (FRB). During the course of regular examinations and visitations, examiners
participating in the study collected information on the country risk management processes in a
sample of internationally active multinational, regional and smaller banks.
The report is not intended to depict the entire spectrum of bank country risk management
practices, nor does it set forth minimum regulatory requirements for country risk management.
However, because it describes the wide variety of approaches used by banks to measure,
monitor and control the risk associated with their foreign exposures, you may find it useful to
compare the report's findings with practices in your own bank. The report has been made
available to international bank examiners.
The OCC and the FRB are also releasing this report to the internationally active banks under
their supervision. The banking agencies are reviewing their country risk management
examination guidance and will consider the results of the study during the review process.
The full report is available electronically at www.fdic.gov. Please contact your FDIC supervisory
regional office if you have any questions.
Nicholas J. Ketcha Jr.
Director
Attachment: Full report, including Executive Summary
Distribution: FDIC-Supervised Banks Filing FFIEC Form 009
NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's
Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-276-
6003 or (703) 562-2200).Inactive
550 17th Street NW, Washington, DC 20429 Division of Supervision
International Banking
FIL-134-98
December 8, 1998
TO: CHIEF EXECUTIVE OFFICER
SUBJECT: Interagency Country Risk Management Study
Attached is an executive summary of the findings of a study by the Interagency Country
Exposure Review Committee (ICERC) on the country risk management practices of U.S. banks.
ICERC comprises examiners from the Federal Deposit Insurance Corporation (FDIC), the Office
of the Comptroller of the Currency (OCC), and the Board of Governors of the Federal Reserve
System (FRB). During the course of regular examinations and visitations, examiners
participating in the study collected information on the country risk management processes in a
sample of internationally active multinational, regional and smaller banks.
The report is not intended to depict the entire spectrum of bank country risk management
practices, nor does it set forth minimum regulatory requirements for country risk management.
However, because it describes the wide variety of approaches used by banks to measure,
monitor and control the risk associated with their foreign exposures, you may find it useful to
compare the report's findings with practices in your own bank. The report has been made
available to international bank examiners.
The OCC and the FRB are also releasing this report to the internationally active banks under
their supervision. The banking agencies are reviewing their country risk management
examination guidance and will consider the results of the study during the review process.
The full report is available electronically at www.fdic.gov. Please contact your FDIC supervisory
regional office if you have any questions.
Nicholas J. Ketcha Jr.
Director
Attachment: Full report, including Executive Summary
Distribution: FDIC-Supervised Banks Filing FFIEC Form 009
NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's
Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (800-276-
6003 or (703) 562-2200).Inactive