Appeals of Material Supervisory Determinations: Guidelines
(October 19, 1995)
The Supervision Appeals Review Committee (“Committee”) of the Federal
Deposit Insurance Corporation (“FDIC”), on October 17, 1995 considered the
appeal of the Compliance Rating of [Bank A] (formerly [Bank B]), (“Bank”)
submitted by you on behalf of the board of directors of that institution.
The Compliance Rating was issued pursuant to the FDIC Compliance Examination
Report as of April 10, 1995.
The Committee concluded that the Composite “3” Compliance
Rating is appropriate given the violations cited at the examination and the
Bank’s deficiencies in its compliance program at the time of the
examination. The examination report satisfactorily illustrates the
condition of the Bank as of April 10, 1995, taking into consideration the
compliance performance of the Bank since the previous examination. It is
FDIC’s policy and practice, in determining any enforcement action against an
institution as a result of examination findings, to give positive
consideration to corrective measures implemented by the institution during
the examination. The Committee noted that the Bank appears to have taken
appropriate corrective actions to address the violations cited. The
committee also noted the Bank’s potential for greater improvement in its
overall compliance program in light of Parent purchase of this institution.
However, the basis for the rating was correct at the time the examination
As communicated to you previously by our
New York Regional Office, we are planning a follow-up compliance examination
of Bank in the very near future.
The determination of the Committee is
considered a final supervisory decision by the FDIC.