Inactive Financial Institution Letters

Technical Assistance Video on Corporate Governance

Summary:

As part of its Community Banking Initiative and Technical Assistance Video Program, the FDIC is announcing the release of an updated video on community bank corporate governance. The video is designed to assist community bank directors and officers in developing a sound corporate governance framework.

Statement of Applicability to Institutions with Total Assets Under $1 Billion: This Financial Institution Letter applies to all FDIC-supervised financial institutions.

Highlights:

• The video discusses the importance of a strong corporate governance program and the link between effective corporate governance and the ability of community banks to remain profitable, competitive, and resilient despite changing conditions.
• The video highlights some key elements to consider in developing a strong corporate governance program – understanding the bank's risk profile; establishing an appropriate risk appetite; obtaining and retaining qualified management; creating a dynamic strategic plan; developing policies and monitoring implementation; and staying informed.
• The video also addresses director roles and responsibilities, FDIC information sources, and concerns raised by the industry regarding corporate governance.
• The video is available for viewing on the FDIC's website at https://www.fdic.gov/regulations/resources/director/virtual/governance.html.
• Alternatively, FDIC-insured institutions may download the video through FDICconnect by contacting their FDICconnect coordinator.