Interagency Guidance on Country Risk Management
March 15, 2002
Circular No. 11426

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

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

In a recent interagency statement (pdf - 116kb) , the Federal Reserve Board, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation announce the issuance of enhanced guidance for banking organizations to manage country risk, the risk that economic, social, or political conditions in a foreign country might adversely affect an organization's financial condition. The interagency guidance and an accompanying Federal Reserve Supervisory Letter are attached.

Questions on the matter may be directed, at this Bank, to Una Neary, Assistant Vice President, Credit Risk Management Function.