Capital Markets Examiner School, Providence, RI

Community Banks

• As the smallest group, this segment must work with expected limited resources of a sub-$1 billion institution. • Relative to these resources, questions of complexity become even more important in many ways as heightened risks can pose an even greater threat to a bank with limited management, technical and financial resources. • Examiners must be more attuned to looking for complexity issues which can outstrip those resources. – Local and business sector concentrations can also heighten risks if they exist.

Mid-Sized Banks

Community banks (sub-$10 billion) are similarly more stabilized as most are far from any shifts in regulatory requirements.

 Traditionally work with much more limited staffs, reporting and governance structures.

 Higher need for consultants.  The board and senior management must maintain responsibility and need to retain capability to scrutinize 3 rd party work.