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F E D E R A L R E S E R V E BANK
OF DALLAS
October 13,

W A TR O U S H. IR O N S

1965

PRESIDENT

To the State Member Bank Addressed:

As a means of strengthening our examination procedures
and meeting our supervisory responsibilities more effectively, we
have adopted a program of direct verification of deposit and loan
balances with customers of State member banks. The practices
which we will follow in verifying account balances with customers
will conform to recognized auditing procedures.
Bank supervisory authorities in cooperation with The
American Bankers Association and the National Association of Bank
Auditors and Ccamptrollers have repeatedly urged adoption of the
direct verification practice by banks.
It is our plan to initiate the direct verification
program on November 1 , 1965. You may wish to advise your deĀ­
positors and borrowers of the new procedure and explain that it
is a part of a program of the Federal Reserve Bank of Dallas
which is being carried out in the course of examination of each
State member bank.
In view of the substantial benefits to be derived from
this program, I am sure that we may count on your support. If you
have any questions in connection with the program, I would suggest
that you contact T. R. Sullivan, Vice President in charge of our
Examination Department.
Sincerely yours,

Watrous H. Irons
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)


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