On September 17th, the SEC proposed rules that would update the statistical disclosures that bank and savings and loan registrants provide to investors. In addition, these changes will eliminate overlap with other SEC rules, US GAAP or IFRS. These proposed rules, which comprise a new subpart in Regulation S-K, would replace Industry Guide 3, Statistical Disclosure by Bank Holding Companies. This new subpart would include the SEC’s banking disclosure requirements.
Thursday, September 19. 2019
These changes, the first significant changes in 30 years, reflect the major changes that have occurred since the last overhaul. This includes the issuance of new accounting standards, among other important modifications. The Division of Corporation Finance has taken an initiative as well to improve disclosure requirements applicable to issuers in terms of benefit to investors and registrants.
The rules would apply to bank holding companies, banks, savings and loan holding companies, and savings and loan associations. Specifically, the following disclosure topics would become required:
- 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 adjustable interest rates
- An allocation of the allowance for credit losses and certain credit ratios
- Information about bank deposits including amounts that are uninsured
These proposed changes will be open for public comment for 60 days after publication in the Federal Register. The proposed rule changes can be read here. You can submit comments using the form available on the SEC’s website or by e-mailing email@example.com with the reference number (S7-02-17) in the subject line. You can also use the Federal Rulemaking Portal to submit comments or send your comments by mail to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. Again, please remember to include reference number S7-02-17.