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FEDER AL RESERVE BANK O F DALLAS January 9, 1924. M E T H O D O F A S S E S S IN G C O S T S O F E X A M IN A T IO N S O F STATE M EM BER BANKS To the State Member Bank Addressed: In a circular letter to state member banks, dated August 21,1923, you were advised of a ruling by the Federal Reserve Board to the effect that, as provided in Section 9 of the Federal Reserve Act, all Federal Reserve Banks w'ould, in the future, assess the costs of their examinations against the member banks examined. In compliance with this ruling, and in accordance with the specific instructions of the Federal Reserve Board, we have, since August 1 last, been assessing all state member banks with the actual cost of examination, including transportation, subsistence of the examiner, and examiner’s per diem, on the basis of annual salary. By reason of the apparent inequity in the method previously followed, in that those banks farthest from the Federal Reserve city bore the largest assessment, the Federal Reserve Board has recently modified its original ruling and advises that in the future Federal Reserve Banks need not assess each state member bank examined with the exact cost of the particular examination. Instead Federal Reserve Banks are permitted to assess against all state member banks examined during the calendar year the expenses of all examinations made in that period in proportion to the assets of the bank examined, on the dates of the examinations. Therefore, effective January 1, 1924, the assessment of examination costs incurred during 1924 will be deferred until the end of the year, at which time the costs of all examinations made will be prorated among the banks examined upon the basis of the ratio that the total resources of the bank examined, on the date of examination, bear to the combined resources of all banks examined during the year. Yours very truly, Federal Reserve Agent. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
@FedFRASER