The end of 2020 is approaching (finally). November not only brought turkey but three important regulatory compliance updates to take note of. This article will provide you a summary of each update and why it’s important for you and your bank or credit union.
The OCC Posts the Semiannual Risk Perspective for Fall 2020
The OCC posted the Semiannual Risk Perspective for Fall 2020 in early November. The perspective discusses key issues facing the banking industry. Additionally, this perspective discusses the effects of the COVID-19 pandemic on the banking industry.
Why Is This Important to Me?
This perspective illustrates just how deeply the COVID-19 pandemic has affected the financial industry. While financial institutions are in strong condition despite the low-interest rates and economic activity has rebounded in the third quarter, there are 5 risk themes financial institutions should focus on.
- Operating Environment
- Bank Performance
- Special Topic on Emerging Themes
- Trends in Key Ricks (Credit risk is increasing, bank financial performance, operational risk and compliance and the BSA)
- Supervisory MRA Concerns
Understanding these risks and developing a solid plan will help strengthen your institution against them.
Federal Reserve Releases the Supervision and Regulation Report
The Federal Reserve published the latest Supervision and Regulation Report, which summarizes banking conditions and information on the Federal Reserve’s bank regulatory and supervisory activities. This specific report focuses on the Federal Reserve’s regulatory response to the COVID-19 pandemic. The report consists of three main sections:
- Banking System Conditions
- Regulatory Developments
- Supervisory Developments
Why Is This Important to Me?
The report details how financial institutions have been a source of strength and stability to the economy during this pandemic. It also details the future outlook for the financial industry in the short term, as well as the commitment of the Federal Reserve to continue ensuring the regulations, supervisory policies, and examination activities are effective and efficient.
OCC Updates Director’s Toolkit
The OCC updated its Director’s Toolkit to help directors of national banks and federal savings associations fulfill their corporate governance responsibilities. The toolkit is meant to help directors understand their obligations, helping them better serve their institutions and communities.
Why Is This Important to Me?
Directors are responsible for implementing the culture of compliance at their organizations. To maintain or create a culture of compliance, directors should utilize this toolkit to better understand the risks and red flags that could harm their institution or communities.
OnCourse Learning provides the Director Education Series which is designed to provide targeted training modules focused on the Bank Director’s conduct, responsibilities and liabilities. Learn more about this series and how OnCourse Learning can help ensure your entire staff, from the frontline to the boardroom, is compliant and properly trained.
About the Author
Rachel Davis
Product Manager at OnCourse Learning
Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.
About the Author
Rachel Davis
Product Manager at OnCourse Learning
Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.
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