Non-Public Supervisory Information Interagency Advisory on Confidentiality of CAMELS Ratings and Other Non-Public Supervisory Information

Financial Institution Letter

FIL-13-2005

February 28, 2005

NON-PUBLIC SUPERVISORY INFORMATION

Interagency Advisory on Confidentiality of CAMELS Ratings and Other

Non-Public Supervisory Information

Summary: The federal banking and thrift regulatory agencies are jointly issuing the attached

advisory to remind institutions that, except in very limited circumstances, they are prohibited by

law from disclosing CAMELS ratings and other non-public supervisory information to insurers and

to other non-related third parties without permission from the appropriate federal regulator.

Distribution:

FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing:

Chief Executive Officer

Chief Financial Officer

Related Topics:

Section 309.6 of the FDIC’s Rules and Regulations

Attachment:

“Interagency Advisory on the Confidentiality of the

Supervisory Rating and Other Nonpublic

Supervisory Information”

Contact:

Sean Forbush, Division of Supervision and

Consumer Protection, sforbush@fdic.gov, 202-898-

8506; or Pamela LeCren, Legal Division,

plecren@fdic.gov, 202-898-3730

Note:

FDIC financial institution letters (FILs) may be

accessed from the FDIC's Web site at

www.fdic.gov/news/news/financial/2005/index.html.

To receive FILs electronically, please visit

http://www.fdic.gov/about/subscriptions/fil.html.

Paper copies of FDIC financial institution letters

may be obtained through the FDIC's Public

Information Center, 801 17th Street, NW, Room

100, Washington, DC 20434 (1-877-275-3342 or

202-416-6940).

Highlights:

•

Some insurers have requested that banks and

savings associations disclose their CAMELS

ratings during the underwriting process when the

institutions seek directors and officers liability

coverage

nancial institution letters

may be obtained through the FDIC's Public

Information Center, 801 17th Street, NW, Room

100, Washington, DC 20434 (1-877-275-3342 or

202-416-6940).

Highlights:

•

Some insurers have requested that banks and

savings associations disclose their CAMELS

ratings during the underwriting process when the

institutions seek directors and officers liability

coverage.

•

The federal banking and thrift regulatory

agencies are reminding banks and savings

associations that, except in very limited

circumstances, they may not disclose a report of

examination or any portion of the report without

the prior written permission of the appropriate

regulator.

•

Any person who discloses or uses non-public

information except as expressly permitted by the

appropriate regulator or as provided by the

regulator’s rules may be subject to the criminal

penalties provided in 18 U.S.C. § 641.

•

The banking and thrift regulatory agencies have

requested assistance from the National

Association of Insurance Commissioners in

notifying insurance companies that requests for

CAMELS ratings should be discontinued due to

the confidential nature of the ratings.

Federal Deposit Insurance Corporation

550 17th Street NW, Washington, D.C. 20429-9990

Financial Institution Letter

FIL-13-2005

February 28, 2005

NON-PUBLIC SUPERVISORY INFORMATION

Interagency Advisory on Confidentiality of CAMELS Ratings and Other Non-Public

Supervisory Information

The Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the

Currency, the Board of Governors of the Federal Reserve System, and the Office of

Thrift Supervision (the Agencies) have jointly issued the attached “Interagency Advisory

on the Confidentiality of the Supervisory Rating and Other Nonpublic Supervisory

Information.” This advisory reminds institutions that, except in very limited

circumstances, they are prohibited by law from disclosing their CAMELS rating and

other non-public supervisory inform

ve System, and the Office of

Thrift Supervision (the Agencies) have jointly issued the attached “Interagency Advisory

on the Confidentiality of the Supervisory Rating and Other Nonpublic Supervisory

Information.” This advisory reminds institutions that, except in very limited

circumstances, they are prohibited by law from disclosing their CAMELS rating and

other non-public supervisory information to insurers as well as other non-related third

parties without permission from their appropriate regulator.

It has come to the attention of the Agencies that some insurers are requesting institutions

to disclose CAMELS ratings during the underwriting process in order to receive directors

and officers liability coverage. FDIC regulations specifically provide that the report of

examination and the information contained therein are highly confidential and can only

be disclosed in accordance with 12 C.F.R § 309 of the FDIC’s Rules and Regulations.

Any person who discloses or uses non-public information except as expressly permitted

by the FDIC or as provided by the FDIC’s regulations may be subject to the criminal

penalties provided in 18 U.S.C. § 641.

The Agencies have requested assistance from the National Association of Insurance

Commissioners in notifying insurance companies that requests for CAMELS ratings

should be discontinued due to the confidential nature of the rating.

Michael J. Zamorski

Director

Division of Supervision and Consumer Protection