Strong corporate governance is the foundation for safe-and-sound operations. Effective governance frameworks help maintain profitability, competitiveness, and resiliency through changing economic and market conditions by incorporating objectives, policies, and risk limits that are appropriate to the size, complexity, and risk profile of the institution. Directors are responsible for providing a clear governance framework and for monitoring the extent to which officers and employees comply with this framework, and with applicable laws and regulations.
Laws and Regulations
Key laws and regulations that pertain to FDIC-supervised institutions; note that other laws and regulations also may apply.
Appendix A to Part 364 — Interagency Guidelines Establishing Standards for Safety and Soundness
provide operational and managerial standards for safety and soundness, which form the basis of an effective corporate governance program
Section 19 of the FDI Act — Penalty for Unauthorized Participation by Convicted Individual
addresses ownership or participation in an insured depository institution by any person who has been convicted of a crime involving dishonesty or a breach of trust or money laundering, or has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such offense
Part 303, Subpart L and
Part 308, Subpart M
address participation in the affairs of an insured depository institution by individuals convicted of crimes involving dishonesty or breach of trust or money laundering, or who have agreed to enter into a pretrial diversion program for such offenses
Federal Reserve Board Regulation O
address extensions of credit from an institution to its
executive officers, directors, and principal shareholders
Federal Reserve Board Regulation W
restricts certain transactions between banks and their affiliates
Frequently asked questions, advisories, statements of policy, and other information issued by the FDIC alone, or on an interagency basis, provided to promote safe-and-sound operations.
A review of corporate governance assesses the sufficiency and effectiveness of the framework in relation to principles outlined in the following examination manuals and handbook
Section 4.1 — Management
of the Risk Management Manual of Examination Policies
Section II. Consumer Compliance Examination — Compliance Management System
of the Consumer Compliance Examination Manual
Section 1 — Management
of the Trust Examination Manual
Business Continuity Management and
booklets from the FFIEC IT Handbook
Corporate Codes of Conduct: Guidance on Implementing an Effective Ethics Program
discusses prudent principles for written policies to promote honest and ethical conduct, compliance with applicable rules and regulations, and accountability
Statement Concerning the Responsibilities of Bank Directors and Officers
addresses duties of loyalty and care owed to shareholders, depositors, and other creditors of the bank
Guidance on Sound Incentive Compensation Policies
discusses prudent principles for consideration in the design and implementation of incentive compensation arrangements, and related policies and procedures that consider potential risks and risk outcomes
Advisory Statement on Director and Officer Liability Insurance Policies, Exclusions, and Indemnification for Civil Money Penalties
discusses the risk associated with coverage exclusions and provides a reminder that a policy may not be purchased providing indemnification to institution-affiliated parties for civil money penalties assessed against them
Interagency Guidance on Third-Party Relationships: Risk Management
provides sound principles that support a risk-based approach to third-party risk management that banking organizations may consider when developing and implementing risk management practices for all stages in the life cycle of third-party relationships.
Supplemental information related to safe-and-sound banking operations.
FDIC's Supervisory Insights — Special Corporate Governance Edition April 2016 (Revised October 2018)
highlights key governance concepts, roles and responsibilities of directors and senior management, and how FDIC examiners evaluate governance at community banks
Pocket Guide for Directors
provides directors with accessible and practical guidance for meeting their duties and responsibilities
Informational videos and recordings of prior webcasts and teleconferences.
The Corporate Governance technical assistance video highlights the importance of corporate governance and describes the roles of individual directors and the board as a whole.
- The Information for New Board Members technical assistance video provides information for new bank board members and an overview of their responsibilities.
The FDIC’s Technical Assistance Video Program includes educational videos designed to provide bank directors, officers, and employees with useful information about areas of supervisory focus and regulatory changes.