The financial performance of banks is steadily improving; however, these institutions continue to face a challenging operating environment. This article provides an informal perspective on the strategic planning process and its importance for successful bank operations. The article concludes with a discussion of strategic planning in the context of issues bank boards and managements are dealing with today.
During the most recent financial crisis, many banks suffered significant losses on investment-grade securitizations thought to be low-risk investments. Following enactment of the Dodd-Frank Act, federal bank regulatory agencies issued regulations and guidance to reduce the likelihood of this happening again. This article summarizes the most important new requirements related to investment in securitizations, including potential effects on capital, and explains how an investment decision process can be structured to help a bank remain compliant with these new requirements.
This feature provides an overview of recently released regulations and other items of interest.
Supervisory Insights is published by the Division of Supervision and Consumer Protection of the Federal Deposit Insurance Corporation to promote sound principles and best practices for bank supervision.
Martin J. Gruenberg
Doreen R. Eberley
Director, Division of Risk Management Supervision
Journal Executive Board
Division of Risk Management
George E. French, Deputy Director and Executive Editor
James C. Watkins, Senior Deputy Director
Brent D. Hoyer, Deputy Director
Mark S. Moylan, Deputy Director
Melinda West, Deputy Director
Division of Depositor and Consumer
Sylvia H. Plunkett, Senior Deputy Director
Jonathan N. Miller, Deputy Director
Michael J. Dean. Atlanta Region
Kristie K. Elmquist, Dallas Region
Stan R. Ivie, San Francisco Region
James D. LaPierre, Kansas City Region
M. Anthony Lowe, Chicago Region
John F. Vogel, New York Region
Kim E. Lowry
Michael S. Beshara
Scott M. Jertberg
Supervisory Insights is available online by visiting the FDIC’s website at www.fdic.gov. To provide comments or suggestions for future articles, to request permission to reprint individual articles, or to request print copies, send an e-mail to SupervisoryJournal@fdic.gov.
The views expressed in Supervisory Insights are those of the authors and do not necessarily reflect official positions of the Federal Deposit Insurance Corporation. In particular, articles should not be construed as definitive regulatory or supervisory guidance. Some of the information used in the preparation of this publication was obtained from publicly available sources that are considered reliable. However, the use of this information does not constitute an endorsement of its accuracy by the Federal Deposit Insurance Corporation.