On September 17, 2019, the Securities and Exchange Commission (the “SEC”) proposed rules that would update the statistical disclosures currently required by Industry Guide 3, Statistical Disclosure by Bank Holding Companies (“Guide 3”) applicable to public bank holding companies, banks, savings and loan holding companies and savings and loan associations. The proposed rules are intended to also codify certain Guide 3 disclosures as well as eliminate other disclosures that overlap with SEC rules, Generally Accepted Accounting Principles and International Financial Reporting Standards.
Guide 3 was first published in 1976 and was most recently revised in 1986. The proposed rules are meant to reflect the numerous changes to the financial reporting and accounting requirements affecting banks since that time.
Specifically, the proposed rules would replace Guide 3 with updated disclosure requirements in a new subpart 1400 of Regulation S-K. The SEC’s proposed rules would require disclosure about 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;
- an allocation of the allowance for credit losses and certain credit ratios; and
- information about bank deposits including amounts that are uninsured.
The proposed rule is subject to a 60-day comment period. To read the SEC’s proposed rules, click here.