The FDIC proposed guidelines to establish corporate governance and risk management standards for covered institutions with total consolidated assets of $10 billion or more.
Details: The proposed guidelines:
Include a description of the general obligations of the board to ensure good corporate governance.
Emphasize the importance of developing a strategic plan and risk management policies and procedures and selecting and supervising senior management so that a covered institution will operate in a safe and sound manner.
Emphasize the importance of adopting a code of ethics that demonstrates high ethical standards and ensuring compliance with applicable laws and regulations.
Would be added as Appendix C to Part 364 of the FDIC’s Rules and Regulations Standards for Safety and Soundness.
Background: In the proposal, the FDIC said bank failures during 2008 and earlier this year demonstrated that corporate and risk governance structure and practices should keep pace as banks grow and become more complex.
Comment Deadline: Comments are due within 60 days of publication in the Federal Register. ICBA is reviewing the proposal.