Expanded Guidance on Subprime Lending - Circulars - FEDERAL RESERVE BANK of NEW YORK

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Circular

Expanded Guidance on Subprime Lending

February 6, 2001

Circular No. 11318

To the Chief Executive Officers of All State Member Banks and Bank Holding Companies in the Second Federal Reserve District:

In a press release dated January 31, 2001, the federal banking regulatory agencies announced that they have expanded their guidance intended to strengthen the supervision of institutions with significant subprime lending programs. The expanded guidance is directed primarily to those institutions that have subprime lending programs that equal or exceed 25% of their Tier 1 regulatory capital.

The interagency guidance (pdf - 44kb) is available, as well as a supervisory letter on the matter from the Board of Governors of the Federal Reserve System.

Guidance on subprime lending was originally issued in March 1999 and is contained in our Circular No. 11142, dated March 11, 1999.

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