The FDIC Board of Directors has adopted the Federal Financial Institutions Examination Council's (FFIEC) recently revised supervisory policy statement on repurchase agreements. A copy of the policy statement is attached. It provides guidance to insured depository institutions on repurchase agreement activities, including guidelines for written repurchase agreements, policies and procedures, credit risk management, and collateral management. 

The policy statement has three principal revisions. First, a new section covering the requirements of the Government Securities Act has replaced an obsolete section dealing with unregulated securities dealers. Second, the policy statement has been streamlined and updated to generally cover other laws and regulations. Third, the list of written repurchase agreement provisions has been updated to reflect current market practice. 

For more information, please contact Keith Ligon, Policy Section Chief in the Securities, Capital Markets and Trust Branch of the FDIC's Division of Supervision (DOS), on (202) 898-3618 or Kenton P. Fox, Senior Capital Markets Specialist in DOS, on (202) 898-7119; or Leslie Sallberg, Counsel in the FDIC's Legal Division, on (202) 898-8876.

Nicholas J. Ketcha Jr.

Director

Attachment: Feb. 20 Federal Register, pages 8645-8649. 

Distribution: FDIC-Supervised Banks (Commercial and Savings) 

NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, N.W., Room 100, Washington, D.C. 20434 (800-276-6003 or (703) 562-2200).