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 Federal Regulator (Farm Credit Administration) |
The System is regulated by the Farm Credit Administration
(FCA). The FCA is an independent agency in the Executive Branch of the United
States Government. System institutions are required to be examined periodically
by the FCA. These examinations may include, but are not limited to, analyses of
credit and collateral quality, capitalization, earnings, interest rate risk, the effectiveness of management,
and the application of policies in carrying out the Farm Credit Act, in adhering
to FCA regulations, and in servicing eligible borrowers.
Each System institution is required to publish an annual report of condition
as prescribed by the FCA. Each report is to contain financial statements prepared
in accordance with generally accepted accounting principles, except as otherwise
directed by statutory and regulatory requirements. These annual financial statements
are required to be audited by an independent public accountant.
The FCA is statutorily empowered to take specified enforcement actions to ensure
safe and sound operations of System institutions. These enforcement authorities
include the power to: (1) issue cease and desist orders, (2) suspend or remove
a director or officer of a System institution, and (3) impose specified civil
money penalties for certain violations of the Farm Credit Act, FCA regulations
or certain orders of the FCA.
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