United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office General Government Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1996-08-05 monographic deposited born digital 30 p. GA 1.13:GGD-96-144 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-96-144 P0b002ee1803831e7 f:gg96144 DGPO 2010-08-12 2011-03-24 GAOREPORTS-GGD-96-144 machine generated eng fdlp REPORT GAOREPORTS-GGD-96-144 GGD-96-144 Farm credit Farm credit banks Farm income stabilization programs Capital Agricultural policies Bank management Insurance premiums Risk management Credit insurance Federal corporations Farm Credit System FCSIC Insurance Fund Letter Report GGD Pursuant to a legislative requirement, GAO reviewed the appropriateness and major advantages of three proposals to increase the Farm Credit System Insurance Corporation's (FCSIC) oversight powers over its Insurance Fund.<p/>GAO found that: (1) authorizing FCSIC to assess association capital would provide short-term additional protection to the Insurance Fund, investors, and taxpayers, but reasons for increased FCSIC power have diminished and granting this authority could destabilize the Fund if the authority were used during a period of financial stress; (2) the Farm Credit Administration (FCA) needs to set adequate capital standards for system banks and supervise and resolve any threats to the Fund; (3) FCA has not demonstrated that giving FCSIC supplemental premium authority is needed; (4) giving FCSIC supplemental premium authority could reduce the system's ability to compete, increase its instability, and reduce bank's ability to pay supplemental premiums; (5) if the system avoids major losses, it should reach a secure base amount and continue to grow gradually through investment income; (6) authorizing FCSIC to charge higher premiums to banks that are most at risk could create additional incentives for banks to manage risk prudently and complement FCA risk-based capital requirements; and (7) FCSIC should be required to pay interest on the $260 million used to start up the Fund, since this interest represents a continuing subsidy. https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-96-144/html/GAOREPORTS-GGD-96-144.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-96-144/pdf/GAOREPORTS-GGD-96-144.pdf GAO/GGD-96-144 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-96-144 Letter Report GAO/GGD-96-144; Farm Credit System: Analysis and Comment on Possible New Insurance Corporation Powers; Farm credit Farm credit banks Farm income stabilization programs Capital Agricultural policies Bank management Insurance premiums Risk management Credit insurance Federal corporations Farm Credit System FCSIC Insurance Fund Volume 99 Page 1678 99 Stat. 1678 Volume 101 Page 1568 101 Stat. 1568 Volume 105 Page 2236 105 Stat. 2236 Volume 106 Page 4102 106 Stat. 4102 Volume 110 Page 162 110 Stat. 162 Public Law 99-205 Public Law 100-233 Public Law 102-242 Public Law 102-552 Public Law 104-105