FDIC Installs Case Managers

To improve communications between banks and the agency, the FDIC is establishing a case manager system. The case manager will be located in one of FDIC's regional offices usually the region in which the bank's headquarters are located - and will be responsible for monitoring all units of the institution. The case manager will be the bank's primary contact at the agency.

FRB Uses Risk in Compliance Exams
As the FRB redevelops its compliance examination procedures, it is developing a risk-focused examination. Compliance risk falls primarily in two areas, according to Mike Rouse, Manager, Oversight, Division of Consumer and Community Affairs.

First, regulatory risk is based on the riskiness of a particular regulation. Rouse identified fair lending as a high risk regulation and Regulation CC, Expedited Funds Availability, as a low risk regulation. He also identified real estate lending as an area of high risk regulations.The second area of risk the FRB will look at is the management of the bank. In this approach, the examiner will review how successful the bank has been in managing risk and where the bank is most exposed to risk. Staff turnover and changes in products are sources of risk that the examiner would approach.

Outreach Idea
Has your bank considered offering help or education programs to consumers on using the Internet? The FDIC thinks this kind of project is a good idea. Every day, there is more information on the Internet that would help consumers understand finance, banking, bank regulations, and bank products.

Consumer compliance regulations are based on providing useful information to consumers on the theory that knowledgeable consumers make better consumers. Offering Internet education can be used by the bank to promote customer relationships, market products, and even as a part of the CRA program.

Copyright © 1997 Compliance Action. Originally appeared in Compliance Action, Vol. 2, No. 8, 7/97