National Bank Surveillance System
What it is:
The National Bank Surveillance System is a computer system that collects financial information about banks.
How it works (Example):
The U.S. Office of the Comptroller of theestablished the NBSS in 1975. It produces a that provides financial comparisons of different banks. The information typically comes from banks' Call Reports, which are periodic reports of financial performance.
Why it Matters:
The goal of the NBSS is to detect which banks are in financial trouble. Banks that show signs of distress in the NBSS system can have their on-site examinations moved up, for example.
The implementation of the NBSS dramatically decreased the number and intensity of on-site bank examinations, because the computerized system was able to detect failing banks faster and more accurately. The bank failures of the 1980s, however, demonstrated that there is still a need for on-site examinations. After all, computers are not very good at scrutinizing managers.