Capital Markets Examiner School, Providence, RI

Bank Size and Risk

Conclusions regarding size and complexity

 The obvious: banks of all sizes have risks  There are numerous rules aimed primarily at the $50 billion plus segment to define large and complex  Examiners cannot make an assumption on the “riskiness” because of asset size  “Small” banks can be more risky than “Big” banks particularly if management builds a structure which is beyond their capabilities

SIZE AND COMPLEXITY EXERCISE