Farm Credit System: Analysis of Financial Condition

GGD-86-150BR Published: Sep 18, 1986. Publicly Released: Sep 18, 1986.
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In response to a congressional request, GAO provided an overview of the important issues facing the farm credit system, specifically: (1) an assessment of internal problems that may have contributed to the system's financial problems; (2) a periodic assessment of the financial condition of the system; and (3) a projection of its condition for the next 12 months.

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Recommendations for Executive Action

Agency Affected Recommendation Status
Federal Farm Credit Board The Chairman of the Federal Farm Credit Board should require the banks in the system to develop and collectively implement a plan to reduce the interest rate exposure of the system. The plan should consider all assets and liabilities systemwide, not the financial position of the individual banks.
Closed – Not Implemented
The Farm Credit Administration differs with the GAO position on asset liability management and has taken the position that asset liability management should be managed on an institutional basis, rather than a systemwide basis.

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