Academic journal article ABA Banking Journal

September Brings Shifts in FDIC Compliance

Academic journal article ABA Banking Journal

September Brings Shifts in FDIC Compliance

Article excerpt

If Paul Sachtleben's plans work out, many banks are going to be seeing less of FDIC compliance examiners.

Exam frequencies aren't being changed, nor is the compliance examiner corps joining Weight Watches en masse. Instead, Sachtleben's section, the Division of Compliance and Consumer Affairs, is introducing some new examination tools and procedures that Sachtleben believes will reduce examiner time in typical in FDIC-supervised banks significantly.

The changes were expected to be adopted nationwide in September, FDIC's examiner force was briefed on the new approaches in a national training conference in July. The shifts are the fruit of a review of examination priorities and techniques that began a year ago, when the division was formed and Sachtleben named to head it. All banks supervised by FDIC will be affected by the changes.

Technology rejiggers file review

One major step the compliance division has taken is to invest in software that will assist examiners to better interpret loan-filed data and to map where banks under examination are lending. Field offices will download loan information from the bank into its software packages. The software will also assist examiners to compare what the bank is doing to data on file regarding the institution's community.

The intent is both streamline examiners analysis and to help exam teams better focus on the most appropriate facets of a bank's activities, according to Sachtleben. "We can probably reduce our time in the bank by about 25% from out previous experience," he says.

In a related effort, the agency is working on techniques that will assist exam teams to improve their file sampling examining banks for compliance with fair-lending and other laws and regulations. …

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