Guidance On Public Disclosure Of Market Risk And Credit Quality - Brief Article

Federal Reserve Bulletin, May, 2001

The Federal Reserve Board on March 23, 2001, issued supervisory guidance that encourages large banking organizations to enhance their public disclosures by using the recommendations of the Working Group on Public Disclosure.

This private-sector working group recommended several specific practices that would enhance disclosure by large banking organizations. These include quarterly disclosure of some market-risk information that is now disclosed annually and enhanced quarterly disclosures about credit concentrations and credit quality of portfolios.

The Federal Reserve believes that the types of disclosures recommended by the working group can enhance the transparency of well-managed institutions.

The Federal Reserve's supervisory guidance, including the specific disclosure recommendations of the working group, is detailed in Supervision and Regulation Letter (SR Letter) 01-06, Enhancements to Public Disclosure. SR Letters can be viewed on the Board's web site (www.federalreserve.gov/ boarddocs/srletters).