Examiner-in-Charge School May 2023

Management / Board

A primary duty of a board is to select and appoint executive officers who are qualified to administer the bank’s affairs effectively and soundly.

Directors should avoid self-serving practices and conflicts of interest and place performance of their duties over personal concerns.

The board should ensure adequate MIS is in place to provide the board with accurate and sufficient reports to know bank’s condition.

Management / Board Ensure appropriate internal control system and adequate auditing program is in place Supervision by directors does not mean the board is performing management tasks Directors can be held personably liable for: • Breach of trust • Negligence which causes loss • Misappropriation of bank assets • Dereliction of Duty • Failure to maintain reasonable supervision over the activities and affairs of the bank, its officers and employees