The Securities and Exchange Commission adopted updated disclosure requirements for domestic and foreign banks, which were historically contained in Industry Guide 3. Consistent with the proposed changes, the final amendments streamline the disclosure requirements since GAAP and IFRS requirements already call for certain disclosures. The SEC fact sheet notes that the rules require disclosures regarding:

  • 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 for credit losses by loan category; and
  • Bank deposits including average amounts and rate paid and amounts that are uninsured.

The rules will be effective 30 days after publication in the Federal Register and will apply to fiscal years ending on or after December 15, 2021, although voluntary compliance with the new rules will be accepted in advance of the mandatory compliance date. A detailed Legal Update will follow.

The press release is available here.

The adopting release is available here.