skip navigation

Tuesday, May 21, 2013

[ – ] Text Size [ + ]  |  Print Page

Home > Bank Resources > Bank Resources Publications > SRC Insights > 2003 > Third Quarter

SRC Insights: Third Quarter 2003

New Interagency Guidance on...

The Use of the Federal Reserve's Primary Credit Program in Effective Liquidity Management
On July 23, 2003, the federal banking, thrift, and credit union regulatory agencies issued guidance on the appropriate use of the Federal Reserve's new primary credit discount window program in depository institutions' liquidity risk management and contingency planning. This guidance provides background on the Federal Reserve's discount window programs, including new primary and secondary credit programs introduced in January 2003. It also reiterates well-established supervisory policies on sound liquidity contingency planning, and discusses sound practices in using primary credit program borrowings in liquidity contingency plans.

The Press Release and Final Rule are available on the Board of Governors' website External Link.

Removal, Suspension, and Debarment of Accountants From Performing Audit Services
On August 8, 2003, the federal bank and thrift regulatory agencies issued final rules governing their authority to take disciplinary actions against independent public accountants and accounting firms that perform audit and attestation services required by section 36 of the Federal Deposit Insurance Act. The final rules, which take effect on October 1, 2003, establish procedures under which the agencies can, for good cause, remove, suspend, or bar an accountant or firm from performing audit and attestation services for insured depository institutions with assets of $500 million or more. The rules permit immediate suspensions in limited circumstances.

The rules provide that certain violations of law, negligent conduct, reckless violations of professional standards, or lack of qualifications to perform auditing services may be considered good cause to remove, suspend, or bar an accountant or firm from providing audit services for banking organizations subject to section 36. Also, the rules prohibit an accountant or accounting firm from performing audit services if the accountant or firm has been removed, suspended, or debarred by one of the agencies, or if the U.S. Securities and Exchange Commission or the Public Company Accounting Oversight Board has taken certain disciplinary action against the accountant or firm.

The Press Release and Final Rule are available on the Board of Governors' website External Link.

The views expressed in this article are those of the author and are not necessarily those of this Reserve Bank or the Federal Reserve System.