The “Governance” issues that are covered by this section of the NBA Compliance Handbook refer to the inter-workings of the financial institution or its holding company at its highest levels (including the board of directors, board committees and senior management) and its relationships with affiliates and third parties.
The past few years have seen the development of great sophistication in the day-to-day operations of commercial banks. This has not only required an increased level of expertise of chief executive officers, but also placed much greater responsibilities upon individual directors.
It is not our intention to frighten or to suggest that your director should change his or her participation in the management of your financial institution. We do hope that you and your directors find the following pages enlightening. We hope to add to these comments from time to time and to solicit your suggestions for additional director-oriented topics.