Capital Briefs: Updated Handbook for Examiners Released

The banking, thrift, and credit union agencies have updated the handbook used by examiners to supervise data processing systems.

The 1996 edition of the exam handbook was released last week by the Federal Financial Institutions Examination Council. It has been updated from the 1994 version to reflect changes in the technology used by banks and thrifts to store and process information.

The new edition explains how the Internet works and lists issues it poses for financial institutions. There is also a new chapter on the safeguards an institution should have regarding check-imaging technology.

Another new section instructs supervisors to focus on an institution's management of risks stemming from their computer systems. These include the risk of a breach in data security, or the risk that computer software or hardware will fail.

The two-volume handbook may be purchased for $50 from any of the financial institution regulatory agencies.

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