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Supervisory Examinations of International Banking Facilities Need To Be Improved

GGD-84-65 Published: Sep 20, 1984. Publicly Released: Sep 20, 1984.
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Highlights

GAO reviewed examinations of international banking facilities (IBF) conducted by federal bank regulatory agencies to determine if the examinations are adequate to ensure compliance with restrictions imposed on IBF activities. The group of regulatory agencies is comprised of the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Office of the Comptroller of the Currency The Chairman of the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and FDIC should develop and use examination procedures to ensure compliance with IBF restrictions. They should work together to adopt more complete and uniform guidance to ensure compliance with the restrictions on IBF activities. These guidelines should include procedures, such as: (1) minimum scope required; (2) methodologies to be used; and (3) documentation needed.
Closed – Implemented
OCC established uniform guidance for its own examiners, but it did not believe that entirely new procedures were necessary. Guidance was reviewed.
Federal Deposit Insurance Corporation The Chairman of the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and FDIC should develop and use examination procedures to ensure compliance with IBF restrictions. They should work together to adopt more complete and uniform guidance to ensure compliance with the restrictions on IBF activities. These guidelines should include procedures, such as: (1) minimum scope required; (2) methodologies to be used; and (3) documentation needed.
Closed – Implemented
FDIC adopted uniform examination guidelines.
Board of Governors The Chairman of the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and FDIC should develop and use examination procedures to ensure compliance with IBF restrictions. They should work together to adopt more complete and uniform guidance to ensure compliance with the restrictions on IBF activities. These guidelines should include procedures, such as: (1) minimum scope required; (2) methodologies to be used; and (3) documentation needed.
Closed – Implemented
The Board of Governors indicated that an examination procedure training course was developed. Course content was reviewed and it responds to this recommendation for uniform guidance.

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Topics

Financial Markets and Institutions
Bank managementBanking regulationInternational organizationsLending institutionsMoney supplyMonitoringStandards evaluationFinancial institutionsInternational bankingRegulatory agencies