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CSBS, FEDERAL RESERVE SIGN EXAMINATION AGREEMENT

 CSBS, FEDERAL RESERVE SIGN EXAMINATION AGREEMENT
 WASHINGTON, Sept. 9 /PRNewswire/ -- The board of governors of the


Federal Reserve System (FRB) and the Conference of State Bank Supervisors (CSBS) today agreed to a joint resolution that sets out a system of cooperative examination between state and federal regulators.
 The agreement should improve the effectiveness of the examination process and reduce the regulatory burden for the 959 state-chartered banks that belong to the Federal Reserve System.
 The 1991 Federal Deposit Insurance Corporation Improvements Act (FDICIA) requires annual examinations for all banks with more than $100 million in assets, and permits federal regulators to accept state examinations in alternating years.
 Under the resolution signed today, each state will sign a separate agreement with the Federal Reserve, to tailor examination schedules to local needs.
 Generally, for banks with CAMEL supervisory ratings of 1 or 2, either the state or the Federal Reserve may conduct examinations on an alternating 12-month basis. They may also examine these institutions concurrently or jointly. For banks with lower CAMEL ratings (3, 4 or 5), the state and the Federal Reserve may each conduct independent examinations as they deem necessary, but should coordinate them wherever possible to avoid redundancy. If the Federal Reserve and the state both find that a 3-rated bank is "stable and improving," the bank may be examined on an alternating- year basis.
 The agreement is similar to one signed by CSBS and the FDIC earlier this year, on cooperative examinations of non-member banks. CSBS Chairman Margie Muller, who is bank commissioner for the state of Maryland, praised the agreement as a further improvement in states' relationships with the Federal Reserve System. "It is formal recognition of long-standing working relationships between state supervisors and the Fed," she said.
 The Conference of State Bank Supervisors is the professional association of the state officials who charter, supervise and regulate the nation's 8,800 state-chartered banks.
 -0- 9/9/92
 /CONTACT: Ellen Lamb, director of communications, Conference of State Bank Supervisors, 202-728-5728/ CO: Conference of State Bank Supervisors ST: District of Columbia IN: FIN SU:


IH -- DC021 -- 7602 09/09/92 14:57 EDT
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Date:Sep 9, 1992
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