§ 3305. — Functions of Council.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
TITLE 12--BANKS AND BANKING
CHAPTER 34--FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL
Sec. 3305. Functions of Council
(a) Establishment of principles and standards
The Council shall establish uniform principles and standards and
report forms for the examination of financial institutions which shall
be applied by the Federal financial institutions regulatory agencies.
(b) Making recommendations regarding supervisory matters and adequacy of
(1) The Council shall make recommendations for uniformity in other
supervisory matters, such as, but not limited to, classifying loans
subject to country risk, identifying financial institutions in need of
special supervisory attention, and evaluating the soundness of large
loans that are shared by two or more financial institutions. In
addition, the Council shall make recommendations regarding the adequacy
of supervisory tools for determining the impact of holding company
operations on the financial institutions within the holding company and
shall consider the ability of supervisory agencies to discover possible
fraud or questionable and illegal payments and practices which might
occur in the operation of financial institutions or their holding
(2) When a recommendation of the Council is found unacceptable by
one or more of the applicable Federal financial institutions regulatory
agencies, the agency or agencies shall submit to the Council, within a
time period specified by the Council, a written statement of the reasons
the recommendation is unacceptable.
(c) Development of uniform reporting system
The Council shall develop uniform reporting systems for federally
supervised financial institutions, their holding companies, and
nonfinancial institution subsidiaries of such institutions or holding
companies. The authority to develop uniform reporting systems shall not
restrict or amend the requirements of section 78l(i) of title 15.
(d) Conducting schools for examiners and assistant examiners
The Council shall conduct schools for examiners and assistant
examiners employed by the Federal financial institutions regulatory
agencies. Such schools shall be open to enrollment by employees of State
financial institutions supervisory agencies and employees of the Federal
Housing Finance Board under conditions specified by the Council.
(e) Affect on Federal regulatory agency research and development of new
financial institutions supervisory agencies
Nothing in this chapter shall be construed to limit or discourage
Federal regulatory agency research and development of new financial
institutions supervisory methods and tools, nor to preclude the field
testing of any innovation devised by any Federal regulatory agency.
(f) Annual report
Not later than April 1 of each year, the Council shall prepare an
annual report covering its activities during the preceding year.
(g) Flood insurance
The Council shall consult with and assist the Federal entities for
lending regulation, as such term is defined in section 4121(a) of title
42, in developing and coordinating uniform standards and requirements
for use by regulated lending institutions under the national flood
(Pub. L. 95-630, title X, Sec. 1006, Nov. 10, 1978, 92 Stat. 3695; Pub.
L. 97-320, title IV, Sec. 431, Oct. 15, 1982, 96 Stat. 1527; Pub. L.
101-73, title VII, Sec. 744(a)(3), Aug. 9, 1989, 103 Stat. 438; Pub. L.
103-325, title V, Sec. 530, Sept. 23, 1994, 108 Stat. 2267.)
1994--Subsec. (g). Pub. L. 103-325 added subsec. (g).
1989--Subsec. (d). Pub. L. 101-73 inserted ``and employees of the
Federal Housing Finance Board'' after ``supervisory agencies''.
1982--Subsec. (b)(2). Pub. L. 97-320 substituted ``unacceptable''
Report on Consistent Use of Financial Terminology
Section 210 of Pub. L. 103-325 provided that: ``Not later than 2
years after the date of enactment of this Act [Sept. 23, 1994], the
Financial Institutions Examination Council shall report to the Congress
on its recommendations for the use of consistent financial terminology
by depository institutions for small business loans or leases of
personal property which are sold for the creation of small business
related securities (as defined in section 3(a)(53)(A) of the Securities
Exchange Act of 1934 [15 U.S.C. 78c(a)(53)(A)]).''
Examination Improvement Program
Pub. L. 102-242, title I, Sec. 111(d), Dec. 19, 1991, 105 Stat.
2241, provided that:
``(1) In general.--The appropriate Federal banking agencies, acting
through the Federal Financial Institutions Examination Council, shall
each establish a comparable examination improvement program that meets
the requirements of paragraph (2).
``(2) Requirements.--An examination improvement program meets the
requirements of this paragraph if, under the program, the agency is
``(A) to periodically review the organization and training of
the staff of the agency who are responsible for conducting
examinations of insured depository institutions and to make such
improvements as the agency determines to be appropriate to ensure
frequent, objective, and thorough examinations of such institutions;
``(B) to increase the number of examiners, supervisors, and
other individuals employed by the agency in connection with
conducting or supervising examinations of insured depository
institutions to the extent necessary to ensure frequent, objective,
and thorough examinations of such institutions.''
Study on Regulatory Burden
Pub. L. 102-242, title II, Sec. 221, Dec. 19, 1991, 105 Stat. 2305,
``(a) In General.--Not later than 1 year after the date of enactment
of this Act [Dec. 19, 1991], the Federal Financial Institutions
Examination Council, in consultation with individuals representing
insured depository institutions, consumers, community groups, and other
interested parties, shall--
``(1) review the policies and procedures, and recordkeeping and
documentation requirements used to monitor and enforce compliance
``(A) all laws under the jurisdiction of the Federal banking
``(B) all laws affecting insured depository institutions
under the jurisdiction of the Secretary of the Treasury;
``(2) determine whether such policies, procedures, and
requirements impose unnecessary burdens on insured depository
``(3) identify any revisions of such policies, procedures, and
requirements that could reduce unnecessary burdens on insured
depository institutions without in any respect--
``(A) diminishing either compliance with or enforcement of
consumer laws in any respect; or
``(B) endangering the safety and soundness of insured
``(b) Report.--Not later than 1 year after the date of enactment of
this Act [Dec. 19, 1991], the Federal Financial Institutions Examination
Council shall submit to the Congress a report describing the revisions
identified under subsection (a)(3).
``(c) Definitions.--For purposes of this section, the terms `insured
depository institution' and `Federal banking agency' have the same
meanings as in section 3 of the Federal Deposit Insurance Act [12 U.S.C.
Study and Report Assessing Feasibility and Usefulness of Depository
Institutions Making Small Business Loans To Compile and Disclose Loan
Pub. L. 96-399, title III, Sec. 340(d), Oct. 8, 1980, 94 Stat. 1659,
directed Federal Financial Institutions Examination Council, in
consultation with Administrator of Small Business Administration, to
conduct a study to assess feasibility and usefulness of requiring
depository institutions which make small business loans to compile and
publicly disclose information regarding such loans, and directed Council
to submit a report on results of such study, together with
recommendations, to Senate Committee on Banking, Housing, and Urban
Affairs and House Committee on Banking, Finance and Urban Affairs not
later than Mar. 1, 1981.
Evaluation and Report on Feasibility and Desirability of Establishing a
Unified System for Enforcing Fair Lending Laws and Regulations
Pub. L. 96-399, title III, Sec. 340(e), Oct. 8, 1980, 94 Stat. 1659,
directed Federal Financial Institutions Examination Council to transmit
a report to Congress not later than Sept. 30, 1982, on feasibility and
desirability of establishing a unified system for enforcing fair lending
laws and regulations, implementing Community Reinvestment Act of 1977
[12 U.S.C. 2901 et seq.], and satisfying public disclosure purposes of
Home Mortgage Disclosure Act of 1975 [12 U.S.C. 2801 et seq.], such
report to evaluate status and effectiveness of data collection and
analysis systems of such agencies involving fair lending and community
reinvestment, and to outline possible specific timetables for
implementing such a unified system.