Regulations and Activities regarding Certificate of Deposit Maturity Notification

A survey was performed of the Federal Home Loan Bank Board's (FHLBB) regulations and of savings and loan associations' (S&L) activities regarding certificate of deposit (CD) maturity notification. FHLBB has not issued regulations covering such notification, and procedures are left to the discretion of the individual S&L. Notification procedures varied among S&L. Six of seven Washington, D.C., S&L reviewed sent adequate notification and also sent information on currently available CD plans. The other S&L sent notification that was not informative enough. Notification procedures at four Norfolk S&L reviewed were not as thorough as those at the Washington institutions. The Office of Examinations and Supervision should review CD maturity notification procedures, and if it is determined that there is a correlation between the procedures and factors regarding S&L size and location, a notification policy could be established accordingly.