FDIC Publication Focuses on Corporate Governance

FDICThe FDIC released a special edition of its “Supervisory Insights” publication that focuses on corporate governance for community banks. The issue includes a summary of responsibilities for bank boards and senior management, commentary on the FDIC’s Pocket Guide for Directors and an overview of regulatory expectations when evaluating board effectiveness.

The publication discusses the board’s role in building a strong risk management culture, understanding the bank’s risk profile and assessing risk appetite and ensuring that appropriate policies, procedures and objectives are in place to appropriately manage risk and meet strategic goals. The FDIC also noted that board members should play an active role in the examination process, engaging with their regulators and thoroughly reviewing examination results and recommendations. The agency said it expects a higher level of board oversight when banks have lower regulatory ratings, enforcement actions, elevated concentrations, complex products, high growth rates, low liquidity or capital levels, business model changes, poor operating results and deterioration in local economies, among other concerns.

Read “Supervisory Insights” here.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s