US FDIC calls on banks to fix 'inaccurate' financial statements

First Republic Bank

24/07/2023 15:08

July 24 (Reuters) - The U.S. Federal Deposit Insurance
Corporation (FDIC) on Monday  called on some banks to fix their
financial statements for "incorrectly" reducing the amount of
uninsured deposits. 
    The banking crisis earlier this year has prompted regulators
to draft new rules to make the industry more resilient. 
    In May, the FDIC had said it would charge a "special
assessment" fee to recoup losses to its deposit insurance fund
from the collapse of three U.S. banks.
    That fee would be determined by the amount of uninsured
deposits a bank held at the end of last year, the banking
regulator had said.
    The regulator said some banks were "not reporting estimated
uninsured deposits in accordance with the instructions."
    "The chief financial officer (or the individual performing
an equivalent function) and multiple directors of each insured
depository institutions are required to attest to the
correctness (of the report)," the FDIC wrote in a letter posted
on its website.
    Banks could submit up to three years of revisions, or more
if appropriate, the regulator added.
    With banking authorities tightening the standards, the
companies are worried that going too far could add undue
pressure to the industry at a time when many lenders are
expecting demand for loans to taper off later in the year.
    

 (Reporting by Niket Nishant in Bengaluru; Editing by Shweta
Agarwal)
 ((Niket.Nishant@thomsonreuters.com;))