Yesterday, the FDIC released FIL-1-2009 requiring state non-member institutions to monitor and report their use of federal funds. In the letter, the FDIC stated, “Given that government funds, capital and guarantees are being used to support banking institutions, banks are expected to document how they are continuing to meet the credit needs of creditworthy borrowers.” The FDIC hopes that monitoring and reporting requirements will reveal how institutions participating in these federal programs are supporting sensible lending and assisting borrowers at risk of unnecessary foreclosures. The FDIC also encouraged institutions to include a summary in shareholder and public reports, annual reports and financial statements of their use of the funds.