Disclosure of Financial Info Flashcards
A covered institution must prepare an ____ _____ of its financial condition as of December 31 of each year.
annual report
By ____ __, covered institutions must make a copy of the report available to members of the public who request it. Current-year reports must continue to be made available until the next year’s report is available.
March 31
T/F: Disclosures must contain a disclaimer stating that the disclosure has not been reviewed or confirmed for accuracy by the bank’s regulatory agency: “This statement has not been reviewed, or confirmed for accuracy or relevance by the OCC/FDIC.”
True
The bank must send either the disclosure or an announcement of the disclosure with its annual notice to shareholders. The notice must contain the ____ or _____ ____ from which to obtain a report.
address
telephone number
The bank must place a notice in its main lobby and in each ___ that announces to the public the availability of the disclosure statement along with the address and phone number from which to obtain a copy, and a statement that one copy will be provided free to charge.
branch
Which of the following actions is acceptable under the financial reporting regulations?
a. Attaching a narrative explanation by management of the reasons for a cease and desist order as a part of the annual disclosure
b. Attaching a copy of the bank’s last safety and soundness examination to the annual disclosure
c. Including a statement that indicates that the bank’s regulatory agency has reviewed the financial information
d. Using an unaudited financial statement for the past two years as an annual disclosure statement
a. Attaching a narrative explanation by management of the reasons for a cease and desist order as a part of the annual disclosure
Bank management may include additional information with the annual disclosure of financial information, such as the existence of and underlying reasons for an enforcement action like a cease and desist order. The regulations specifically prohibit the other actions.
If a bank receives a request for financial disclosure, how may the bank fulfill this request?
a. Provide copies of the call reports covering the current and previous year
b. Provide a copy of its statement of condition covering the year immediately preceding the request
c. Provide a copy of its most recent, unaudited financial statement
d. Provide copies of its Uniform Bank Performance Reports for three consecutive years
a. Provide copies of the call reports covering the current and previous year
The bank may provide a copy of its call report or just the relevant sections as required by the regulation. The other methods described do not fulfill the requirements of providing an alternative disclosure statement.
A bank may include all of the following in the narrative portion of its financial disclosure except for one. Which of these pieces of information CANNOT be disclosed?
a. Information relating to mergers and acquisitions
b. Information related to a regulatory enforcement action that currently applies to the bank
c. An excerpt from the latest regulatory examination prepared by the bank’s regulatory agency
d. The bank’s future plans for product development
c. An excerpt from the latest regulatory examination prepared by the bank’s regulatory agency
A bank cannot disclose its regulatory examination. The other information may be included.
A customer of the bank has made a request to the CEO for a copy of the bank’s most recent regulatory report of examination. He bases his request on the Disclosure of Financial Information lobby notice. The CEO asked her assistant to get a copy of the report from you to sent to the customer. What should you do?
a. Give the assistant the copy so she can send it to the customer
b. Tell the assistant that you will send it as soon as you verify that the person is really a bank customer
c. Let the assistant know that the bank may not release the exam report to the person because it is prohibited by law
d. Let the assistant know that she should respond to the customer informing him that he can obtain the exam report directly from the regulator of the bank
c. Let the assistant know that the bank may not release the exam report to the person because it is prohibited by law
