Managing the ever-changing world of regulatory compliance can be difficult and challenging for community banks. Many regulators expect small banks to provide compliance plans similar to the ones larger banks are delivering. This expectation doesn’t consider the fact that community banks have fewer resources to implement the same type of plans.
The following are a few ideas to help you ease the burden of compliance and share the regulatory responsibility within your institution:
- Involve all senior management and board members with compliance. They should be informed of current regulations and involved in the management process.
- Take a proactive approach to compliance by integrating compliance programs into the operation. This spreads the responsibility throughout the banking team and notifies you of deficiencies prior to exam reports.
- Fully utilize available resources. Accounting firms and trade associations can help you understand the issues and questions involving compliance regulations. They will keep you updated on changes and new requirements affecting your institution. In addition, you need to make sure you fully read and understand the information being provided to you. You may want to designate a team member to be responsible for managing new regulatory information as it is received.
- Keep good records. The only way an examiner can track your attempts at compliance is if he/she can see them. Don’t waste your efforts by not documenting them.
To learn more about regulatory compliance and the helpful resources available at Condley and Company, L.L.P., please contact a member of our banking team at 325-677-6251.