- A number of federal programs have recently been instituted to promote financial stability and
improve liquidity conditions for insured depository institutions. These initiatives consist of
direct capital injections, federal guarantees on financing, and expanded borrowing facilities.
- Given that government funds, capital and guarantees are being used to support banking
institutions, banks are expected to document how they are continuing to meet the credit needs of
creditworthy borrowers, as described in the November 10, 2008, "Interagency
Statement on Responsible Lending" (see FIL-128-
- The FDIC expects that state nonmember institutions (or their parent companies) will deploy
funding received from these federal programs to prudently support credit needs in their market
and strengthen bank capital.
- In order to assess how participation in these federal programs has helped the institution
support lending and/or support efforts to work with existing mortgage borrowers to avoid
unnecessary foreclosures, FDIC-supervised institutions should implement a process to document
how these funds were used. State nonmember institutions should describe their utilization of
this federal funding during bank examinations and are encouraged to summarize such information
in published annual reports and financial statements. Including such information in public
reports will provide important information for shareholder and public evaluation of
participation in these programs.
Chief Executive Officer
Chief Financial Officer
Chief Credit Officer
For questions related to the Department of
Treasury's Troubled Asset Relief Program,
please contact Steven L. Fritts, Associate
Director, at (202) 898-3723 or firstname.lastname@example.org.
For all other questions, please contact Mindy
West, Chief, at (202) 898-7221 or
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
To receive FILs electronically, please visit
Paper copies of FDIC financial institution letters
may be obtained through the FDIC's Public
Information Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226.