Capital Markets Resource Center
The FDIC has consolidated a number of resources relating to bank investment portfolios.
This webpage will allow users to:
- Review rules and guidance regarding investment portfolios for FDIC supervised depository institutions.
- Browse recent news and press releases, financial institution letters, and related documents regarding bank investment portfolios.
Investment securities can provide banks with earnings, liquidity and capital appreciation. Carefully constructed portfolios can also help reduce overall risk exposure. However, investment activities can also create considerable risk exposure particularly through credit risk, market risk, liquidity risk, re-pricing risk, and undue concentrations. To effectively oversee individual investments and the overall securities portfolio, bank boards of directors should establish effective policies governing authorized investments, due diligence and risk selection, risk limits, and accurate financial reporting and safekeeping.