On September 11th, 2020, the SEC announced that it has adopted the final rule for its update of statistical disclosures for bank and savings and loan registrants. The rule modifies required disclosures and classifies certain disclosures in a new Subpart 1400 of Regulation S-K. It reduces duplicative or overly similar disclosure items in other SEC rules and requirements in US GAAP and IFRS. It also replaces Industry Guide 3, Statistical Disclosure by Bank Holding Companies. These changes are intended to help investors have access to more meaningful, relevant information about these registrants, which will facilitate their investment and voting decisions.
The rules are an indication of the substantial financial reporting modifications, including the publication of new accounting standards, that have taken place for banking registrants since the SEC’s last update to Industry Guide 3. The rules are also part of a proposal by the Division of Corporation Finance to assess disclosure requirements applicable to issuers in order to consider ways to improve the requirements for the benefit of investors and registrants.
The SEC’s rules require disclosure regarding the following:
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 or adjustable interest rates
certain credit ratios and the factors that explain material changes in the ratios or the related components during the periods presented
the allowance forcredit losses by loan category
bank deposits including average amounts and rate paid and amounts that are uninsured
The final rule pertains to domestic and foreign bank holding companies, banks, savings and loan holding companies, and savings and loan associations and will go into effect 30 days following publication in the Federal Register. While the new rules will apply to fiscal years ending on or after December 15, 2021, voluntary compliance with the latest rules will be accepted prior to the mandatory compliance date. Guide 3 will be repealed effective January 1, 2023.