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BankNet

BankNet
More resources for national banks

Derivatives

Derivatives are financial instruments that derive their value from the performance of assets, interest or currency exchange rates, or indexes. They may include structured debt obligations and deposits, swaps, futures, options, caps, floors, collars, and forwards, either singly or in various combinations.

References

BC = Banking Circular
OCC=Bulletin

See also Accounting

Risk Management of Financial Derivatives and Bank Trading Activities—Supplemental Guidance (OCC 1999-2, January 1999)
Summarizes key lessons learned and fundamental control issues reaffirmed in the aftermath of 1997’s global economic volatility

Accounting for Derivatives (OCC 1999-1, January 1999), Interim Guidance (December 1998)
Covers FAS 133 requirements to record all derivatives on the balance sheet as assets or liabilities at their fair value

Credit Derivatives—Guidelines for National Banks (OCC 1996-43, August 1996)
Covers the developing market for credit derivatives and provides initial guidance on supervisory issues

Risk Management of Financial Derivatives (BC 277, October 1993)
Provides guidance on risk management practices to national banks and federal branches and agencies engaging in financial derivatives activities