Financial Institution Letter: Uniform Agreement on Classification and Appraisal of Securities Held by Financial Institutions
The Federal Deposit Insurance Corporation ("FDIC") and other federal banking agencies issued a joint Statement of Agreement regarding the importance of "robust" investment analysis and process in the agencies' longstanding asset classification definitions. Additionally, the statement addressed Dodd-Frank Section 939A ("Review of Reliance on Ratings"), which directs agencies to remove any reference to or requirement of reliance on credit ratings in the regulations and replace them with appropriate standards of creditworthiness. The FDIC noted in a Statement of Applicability that the Financial Institution Letter applies to all FDIC-supervised banks, and saving associations, with assets under $1 billion.