Words Of Wisdom From The OCC

Comptroller of the Currency, John D. Hawke, Jr., recently addressed the students at ABA's Stonier Graduate School of Banking. In his speech, he defined good banking and what a banker should be. Several of his statements take on particular significance following the release of the enforcement action against Providian bank. Consider Hawke's words of wisdom in the context of unfair and deceptive trade practices.

"It was not that long ago when bankers were responsible for setting standards and writing many of the rules that the rest of the business community lived by?Bankers may not be as free as they once were to impose their standards on others, but they cannot stop applying those standards to themselves - even if that involves walking away from dubious deals, or steering clear of activities that may pose undue reputation risk, or entering new fields without first acquiring the necessary managerial expertise." "It's crucial not to lose sight of the distinction between means and ends. Banking is a service business?No matter what niche in the marketplace a bank seeks to fill, customer service has to come first. Everything else is a distant second."

It is "every banker's responsibility - perhaps their foremost responsibility - to get to know their customers: their strengths and limitations, their goals and aspirations. That understanding is the foundation of outstanding service and lifelong customer relationships. Good bankers know what kinds of products and services to offer customers - and sometimes just as important, what not to offer them."

Copyright © 2000 Compliance Action. Originally appeared in Compliance Action, Vol. 5, No. 11, 10/00