November 10, 2003 News Archive

Board Issues Reminder on Need for Independence in Collateral Valuation Process
The Board recently issued SR 03-18 as a reminder to financial institutions of the need for independence in the selection of appraisers and review of appraisals. This guidance was issued due to concerns identified during examinations. The guidance recognizes absolute lines of independence may not be possible in some small institutions, but these institutions should have controls that prevent a single person from issuing credit decisions involving loans on which he or she ordered or reviewed the appraisal or evaluation.

Board Releases Senior Loan Officer Survey Results
The Board recently released the results of the most recent Senior Loan Officer Opinion Survey on Bank Lending Practices. Fifty-eight domestic banks and twenty-one foreign banks were surveyed on changes in the supply of and demand for bank loans to businesses and households over the past three months.

Joint Request for Comment on Treatment of Losses Under New Basel Capital Accord
In a joint press release, the federal agencies requested comment on a modification dealing with the treatment of expected and unexpected losses under the new Basel Capital Accord. Comments will be accepted until December 31, 2003.