Joint Agency Advisory on Rate-Sensitive Deposits
June 11, 2001
Circular No. 11353

To the Chief Executive Officers of All State Member Banks, Bank Holding Companies, Edge & Agreement Corporations, and State-Chartered Branches & Agencies of Foreign Banks in the Second Federal Reserve District:

In a press release dated May 11, the federal bank and thrift regulatory agencies (including the Board of Governors of the Federal Reserve System) jointly issued an advisory (pdf - 20kb) on brokered and other rate-sensitive deposits. The advisory also provides guidance on prudent risk identification and management for these types of funding.

On May 31, the Federal Reserve Board issued a supervisory letter (SR 01-14) following up on the press release. Both the press release and the letter contain links to the joint advisory.

Questions on this matter may be directed, at this Bank, to Jeanmarie Davis, Supervising Examiner, or to Sarah P. Adelson, Examination Officer, Market and Liquidity Risk Department.