Skip Header
U.S. flag

An official website of the United States government

Supervisory Insights

Summer 2017 Vol. 14, Issue 1 - Table of Contents

Last Updated: April 6, 2023

Supervisory Insights - Summer 2017 - PDF

Letter from the Director


Community Bank Liquidity Risk: Trends and Observations from Recent Examinations

FDIC examiners recently have observed liquidity stress at a small number of banks. Although these have been isolated instances, they illustrate the importance of liquidity risk management as many institutions continue to reduce holdings of liquid assets. Bank management should be cognizant of potential funding issues that can arise in stress situations as they develop or revise contingency funding plans. The article reiterates principles outlined in existing supervisory guidance and is intended as a resource for bankers who wish to heighten awareness of prudent liquidity and funds management.

The Bank Secrecy Act: A Supervisory Update

The information collected through Bank Secrecy Act/Anti-Money Laundering (BSA/AML) programs is critical to the United States government’s counter terrorist financing initiatives and other longstanding efforts to protect the financial system from illicit finance. The FDIC carefully evaluates a depository institution’s compliance with the recordkeeping and reporting requirements of the BSA and implementing AML regulations. The focus of the BSA/AML examination is to assess whether the depository institution has established appropriate policies, procedures, and processes consistent with the institution’s BSA/AML risk. The article reports that the vast majority of BSA/AML compliance deficiencies identified by the FDIC are resolved through the supervisory process without the need for an enforcement action. The article also provides examples of rare, but significant, failures in BSA/AML compliance programs.

Regular Features

Regulatory and Supervisory Roundup

This feature provides an overview of recently released regulations and other items of interest.

Supervisory Insights

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
Chairman, FDIC

Doreen R. Eberley
Director, Division of Risk Management Supervision

Journal Executive Board

Division of Risk Management Supervision
George E. French, Deputy Director and Executive Editor
James C. Watkins, Senior Deputy Director
Martin D. Henning, Deputy Director
Maureen E. Sweeney, Deputy Director

Division of Depositor and Consumer Protection
Sylvia H. Plunkett, Senior Deputy Director
Jonathan N. Miller, Deputy Director

Regional Directors
Michael J. Dean. Atlanta Region
Kristie K. Elmquist, Dallas Region
John R. Jilovec, Acting Regional Director, Kansas City Region
James D. LaPierre, Acting Regional Director, Chicago Region
Kathy L. Moe, San Francisco Region
John F. Vogel, New York Region

Journal Staff

Kim E. Lowry
Managing Editor

Amanda M. Lee
Financial Writer

Michael T. Register
Financial Writer

Supervisory Insights is available online by visiting the FDIC’s website at 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

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.