SEC Modernizes Disclosures for Banking Registrants

September 11, 2020

Published: SEC

Modernization of Statistical Disclosures for Bank and Savings and Loan Registrants

The Securities and Exchange Commission today adopted updates to statistical disclosures for bank and savings and loan registrants.  The rules update the disclosures that investors receive and eliminate disclosures that overlap with Commission rules, U.S. GAAP or IFRS.  The rules codify the updated disclosure requirements in new subpart 1400 of Regulation S-K and rescind Industry Guide 3, Statistical Disclosure by Bank Holding Companies, which is not a Commission rule.

Background

The rules reflect the significant financial reporting changes, including the issuance of new accounting standards that have taken place for banking registrants since the Commission last updated Industry Guide 3.  The rules are also part of an initiative by the Division of Corporation Finance to review disclosure requirements applicable to issuers to consider ways to improve the requirements for the benefit of investors and registrants.  

Highlights

The rules apply to domestic and foreign bank holding companies, banks, savings and loan holding companies, and savings and loan associations.  Disclosures are required for each annual period presented and any additional interim period if a material change in the information or trend evidenced thereby has occurred.

The Commission’s rules require disclosure about the following:

·         Distribution of assets, liabilities and stockholders’ equity, the related interest income and expense, and interest rates and interest differential;

·         Weighted average yield of investments in debt securities by maturity;

·         Maturity analysis of the loan portfolio including the amounts that have predetermined interest rates and floating or adjustable interest rates;

·         Certain credit ratios and the factors that explain material changes in the ratios, or the related components during the periods presented;

·         The allowance for credit losses by loan category; and

·         Bank deposits including average amounts and rate paid and amounts that are uninsured.

https://www.sec.gov/news/press-release/2020-205

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