Change in the financial marketplace has created a more competitive and challenging environment for all financial institutions. As a consequence of this change, the role of the financial institution board member has grown in importance and complexity.
Recent corporate scandals and the passage of the Sarbanes-Oxley Act of 2002 have again brought the public’s attention to the need for a strong and independent board of directors. While financial headlines may change, the banking industry’s longstanding principles of corporate governance remain valid today.
This Pocket Guide, which can be found by going to the FDIC website (www.fdic.gov) and searching for "Pocket Guide for Directors," has been developed by the Federal Deposit Insurance Corporation to provide directors of financial institutions with accessible and practical guidance in meeting their duties and responsibilities in a changing environment. These guidelines have been endorsed by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Office of Thrift Supervision.
We hope this Pocket Guide will help to make the director’s job one that can be approached with clarity, assurance and effectiveness. If you are helped in meeting these goals, then the larger goal of maintaining confidence in the safety and soundness of our financial system will also be advanced.
For more information on corporate governance and other issues of interest to financial institution directors, please visit the “Directors’ Corner” on our website at www.fdic.gov.