FOR IMMEDIATE RELEASE: August 23, 1996

The Financial Institutions Bureau announced today preliminary results of its survey of bankers. In March 1996, the FIB began surveying bankers at Michigan state-chartered banks for suggestions to improve the quality of safety and soundness examinations and the Bureau's bank regulatory program. The effort is aimed at detecting and changing aspects of the FIB examination process that may be burdensome or inefficient.

"This program is providing another source of information on how the FIB can minimize the regulatory burden on banks, and at the same time, refine our examination methods for safety and soundness purposes," said FIB Commissioner Patrick M. McQueen.

The survey presents a series of fifty statements to which each bank and trust department independently examined by FIB in 1996 is asked to respond. The survey focuses on effectiveness of Bank & Trust Division staff, the examination process, and the examination product. Each completed survey is sent from the bank directly to Donald Jeffrey, an independent consultant retained by FIB. Mr. Jeffrey compiles the data and presents quarterly summary reports to the Bureau.

The first report on the survey has been reviewed and analyzed. While banker's evaluations of the Bureau's Bank & Trust Division are generally very positive, some specific areas for improvement have been identified and changes will be implemented. The Division will better communicate its Board meeting policy and be definitive about how soon after an exam the final Report of Examination will be returned to the bank. Additionally, examiners will make some changes to their pre-examination process and scope setting techniques.

"The emphasis in this program is on two-way communication, timely analysis and effective follow-up, " Commissioner McQueen said. "These elements are essential for the FIB to maintain an efficient supervisory program and to continue working effectively with bankers to encourage safe and sound banking operations in Michigan."