DES MOINES, Iowa, Jan. 23, 2009 (GLOBE NEWSWIRE) -- The Federal Home Loan Bank of Des Moines and the North Dakota Department of Financial Institutions announced today the signing of an information-sharing agreement aimed at enhancing communication. Under the first agreement of its kind, these two organizations will exchange information in a number of important areas, including extensions of credit, collateral valuation, examination reports and other relevant supervisory information.
FHLB Des Moines President and CEO, Richard Swanson, welcomes the agreement saying, "Information sharing is vital and can help increase the stability of the financial services industry in this region. The agreement enhances coordination between our Bank and regulatory bodies and ultimately allows us to better serve our members."
The pact comes as financial institutions are confronted with complex regulations and a wide variety of financial players. "This agreement is the type of coordination we must have to meet the needs of a rapidly changing industry," said Tim Karsky, Commissioner, North Dakota Department of Financial Institutions. "It will also facilitate the timely monitoring of financial institution liquidity and enhance our safety and soundness exams. In general, I think this will make the examination process much smoother for our departments and the institutions we work with."
The agreement is broad in the type of information to be provided and is endorsed by the Conference of State Bank Supervisors, of which Commissioner Karsky currently serves as Chairman, and the Council of Federal Home Loan Banks. The agreement will serve as a model for the two-way flow of communication between the Federal Home Loan Bank System and state banking agencies, strengthening the ability of these two organizations to detect problems and respond to a dynamic financial services industry. It will allow both organizations to strengthen their ability to make more informed decisions which may provide FHLB Des Moines member financial institutions in North Dakota fuller access to products and liquidity.
The Federal Home Loan Bank of Des Moines is a wholesale cooperative bank that provides low-cost short and long-term funding and community lending to more than 1,200 members, including commercial banks, saving institutions, credit unions and insurance companies. The Bank is wholly owned by its members and receives no taxpayer funding. The Des Moines Bank serves Iowa, Minnesota, Missouri, North Dakota and South Dakota and is one of twelve regional Banks that make up the Federal Home Loan Bank System.