Regulatory Compliance

Banking is a heavily regulated industry. Because of that, bank directors and management must provide a compliance management program to insure compliance with various laws and regulations. Such a program should include the necessary preventive measures to avoid violations in the first place, detective measures to identify issues in a timely manner, and corrective measures to insure timely resolution of issues. Failure to perform this duty could expose your bank to loss, and both you and the bank to supervisory sanctions and monetary penalties.

Lesson Objectives

This section provides you with a summary of regulatory compliance. When you finish this section of the course, you should be able to:

  1. understand the director's responsibility for compliance and
  2. recognize laws and regulations that affect directors and banks.