Full text of District Notices (Federal Reserve Bank of Dallas) : [Call and Income and Dividend Reports, Proposed Revision], Circular No. 68-179

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F ederal

reserve

Bank

DALLAS, TEXAS

of

Dallas

75222

Circular No. 68-179
August 20, 1968

To All State Member Banks in the
Eleventh Federal Reserve District:
From time to time minor revisions in the Call and Income and
Dividend Reports are necessary because of changes in banking practice and
in financial conditions. On this occasion, however, the Federal Bank
Supervisory Agencies have completed a review of current reporting require­
ments and are proposing a more fundamental revision of these reports.
The major impetus for this reappraisal stemmed from the various points
of non-comparability between the regulatory reports and the requirements
with respect to financial disclosure promulgated by the three agencies
in compliance with the Securities Acts Amendments of 19^ , but it also
has been felt that the existing reports have become increasingly deficient
in reflecting the activities of banks as business enterprises.
As the result of a detailed study of ways to achieve better and
more uniform bank reports, the agencies have drafted a set of proposed
changes in the Call and Income and Dividend Reports. A copy of the agen­
cies’ material is enclosed for your information. The most significant
changes envisioned concern accounting principles. Here the proposals
advocate a wider application of accrued accounting and a change in the
treatment of taxes, valuation reserves, fixed assets, and securities trad­
ing accounts. Other proposals call for the consolidation of certain
domestic subsidiaries and, in a separate consolidated report, the signifi­
cant foreign banking activities of larger commercial banks. Some form of
public disclosure of the contents of the annual Income and Dividend
reports is also advocated.
We would appreciate receiving any comments that you may have
on these proposals and on the associated changes in the reporting forms
(detailed in Sections 3 and
of the Report). Since the plan is to intro­
duce the changes for the calendar year 19&9;
in view
the lead-times
necessary in developing procedures for the change-over, it would be appre­
ciated if we could receive your comments on or before September 30, 1968.
Yours very truly,
P. E. Coldwell
President

Enclosure (l)

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