Latest Compliance Topics

Question: How often should a bank conduct compliance training? I know there are specific requirements for training on BSA but are there any specific requirements for lending regulations?

You can now use electronics for compliance.

Question: My CEO told me that he heard that small banks are exempt from CRA. My understanding is different. Could you clarify how small banks are treated under the new CRA regulation?

The Federal Reserve is requesting comment for the definition of what constitutes a finance charge in Regulation Z.

Question: Our bank is using next day availability for all our deposit customers. However, we have had some losses.

For those of you looking forward to the new era of suspicious activity reports in lieu of criminal referrals, there is still hope. It should happen in 1996. In fact, it should happen soon.

Question: Our construction lenders often make loans to consumers to purchase a lot and take security in the lot.

Not yet, but soon. The new policy on exemptions won't be issued until the suspicious activity report process is final.

Question: What are acceptable ratios for loan applications from minorities and approvals to denials for minorities and non-minorities? Are there any standards?

The word from the regulatory agencies is out, and it's final. There will be no delays in implementing the new CRA regulation and examination procedures.