Interagency Statement on Loan Loss Allowances
December 21, 1998
Circular No. 11121

To the Chief Executive Officers of All State Member Banks and Bank Holding Companies in the Second Federal Reserve District:

The Securities and Exchange Commission, Federal Deposit Insurance Corporation, Federal Reserve Board, Office of the Comptroller of the Currency, and Office of Thrift Supervision have issued a joint statement on the allowance for loan losses of depository institutions, in order to better ensure the consistent application of loan loss accounting policy and to improve the transparency of financial statements.

Questions may be directed, at this Bank, to any member of the portfolio management team responsible for your organization.