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Events: Banking Supervision & Regulation
The Federal Reserve Bank of San Francisco's Division of Banking
Supervision & Regulation (BS&R) invites banking industry directors,
officers, staff, consultants, and regulators to join us for periodic
events. Currently, we are offering a series of audio conferences. To
participate, please complete the online registration form and you will
receive the “Call the Fed” dial-in instructions and link
to presentation material via email at least one week prior to the call.
There is no charge to participate.
If you have questions about a past
or planned audio conference, send
us an e-mail message.
Upcoming
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BE PREPARED: Sound Liquidity Risk Management in a Challenging Environment
"Call The Fed" Audio-Conference
July 29, 2008, 2:00-3:30 PacificTime
Banks’ liquidity profiles have evolved over the past few years as a result of several factors, including retail deposit disintermediation and robust loan growth. As a result, risk profiles have shifted, with the majority of banks increasingly reliant on wholesale funding sources such as brokered deposits and Federal Home Loan Bank advances. While many institutions appropriately strengthened risk management commensurate with this heightened risk profile, the events of the past three quarters have only served to highlight the importance of sound Liquidity Risk Management practices in order for banks to be prepared for the unexpected.
Senior Examiner David Erigero will share his views on this increasingly challenging liquidity environment, highlight sound practices for enhanced liquidity management and associated regulatory guidance, and relate some observations of recent issues and their implications for liquidity. Specifically, he will focus on forward-looking liquidity metrics, the use of scenario analysis and stress testing, and contingent funding plans. He will also discuss potential pitfalls facing banks in executing sound liquidity risk management practices, including the Prompt Corrective Action “well-capitalized” threshold for use of brokered deposits.
Rick Miller, Discount Officer and Director of Credit and Risk Management, will also be present on the call to remind bankers about some of the logistical steps required to be prepared for collateralized borrowing from the Discount Window.
This session will be geared primarily towards CFOs, Treasurers, funding managers, and senior federal and state bank examiners.
There will be a 30 to 35 minute presentation followed by Q&A. You can register for this audio-conference at any time. Participants are encouraged to submit questions or comments ahead of time or during the audio conference.
Presentation materials will be available here a few days before the conference.
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Remote Deposit Capture
"Call The Fed" Audio-Conference
February 27, 2008, 2:00-3:00 PacificTime
What does remote deposit capture (RDC) have in common with the telegraph, telephone, fax machine, e-mail, and text messaging? They were all new or modified forms of delivery systems. Each one improved on the timeliness, flexibility, and capacity of transferring information. RDC provides banks and/or customers with a means to electronically transmit a check for processing instead of physically transporting the check by hand, courier or mail.
Many institutions either have implemented an RDC solution or are considering RDC solutions to enhance customer convenience, shorten clearing and settlement times, increase operational efficiency and improve access to customer market shares beyond branch and ATM networks. While there are many potential benefits, RDC may also present potential risk exposures to the institution that require further analysis.
Senior Manager George Mori will share his views on the inherent risks and control practices to consider in managing RDC for your organization. Poor planning, management and implementation of RDC could result in:
- Reputational risk from customer dissatisfaction or information security breaches;
- Financial losses from fraud, errors, and credit risk; and
- Legal risk from noncompliance with regulations and/or industry standards.
The session is geared primarily toward the officers or managers responsible for planning, implementing and managing RDC system and check processing, such as the IT officer/manager, back office operations officer/manager, information security officer, and credit risk officer.
Materials:
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Consumer Compliance Hot Topics
"Call The Fed" Audio Conference
November 28, 2007, 2:00-3:00 p.m. Pacific time
Consumer protection is hot! With consumer issues in the forefront of the news these days, compliance with consumer laws and regulations is subject to a higher level of scrutiny than ever. As regulators, we regularly see a variety of issues that provide compliance challenges for bankers. With that in mind, this session covered a few topics that we've encountered in the Twelfth District that you want to be aware of. These included:
- Flood insurance - A perennial challenge, flood insurance violations show no signs of subsiding and the Agencies continue to assess civil money penalties. We focused on the issue of flood insurance and "blanket" or "gap" insurance policies. Does your bank utilize a bank-owned blanket policy to force place flood insurance? If so, you'll want to be sure to hear about the compliance issues associated with this practice.
- CRA - The proposed interagency Q&A contains some guidance that will have a significant impact on banks subject to the Intermediate Small Bank test. Learn all about the proposed Q&A guidance and get tips on managing your institution's CRA program.
- Fair Lending - Does your institution engage in indirect auto lending? Do you think you're the creditor? Are you sure? If you answered yes to any of these questions, you won't want to miss this presentation on indirect auto lending so that you can steer clear of fair lending woes.
This session was lead by management from the Reserve Bank's Consumer Compliance examination unit, including Compliance Managers Stephen DeLay, John Byrd, and Cecilia Knowles. It was geared primarily to compliance staff and CRA Officers.
Materials
- Presentation
materials (PDF - 376KB)
- Media-On-Demand audio presentation
of the
event
(Internet Explorer required)
- Windows
Media version (streaming 140K)
Please note: the file will be fully interactive only after the it
has finished downloading, which may take up to five minutes.
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The Allowance for Loan and
Lease Losses—Beyond the Basics
"Call The Fed" Audio Conference
August 7, 2007, 2:00-3:00 Pacific time
How confident are you of the amount of loan loss allowance
at your bank and the rationale to support them? Do you know
the common pitfalls and misperceptions that bankers have
about the allowance? Are you looking for ways to strengthen
the governance of your ALLL program? What are the risks associated
with not complying with GAAP and supervisory guidance?
Senior Banking Analyst Walter Yao shared his observations
on the common pitfalls, misperceptions, and sound practices
regarding various aspects of the loan loss allowance. He discussed the interagency policy statement on the Allowance for
Loan and Lease Losses issued by the regulatory agencies on
December 13, 2006, which replaces and revises the 1993 statement
and lays out supervisory expectations for banking institutions'
loan loss allowance practices. In addition, he addressed
some of the most frequently asked questions related to the
allowance and answer your questions.
The session is geared primarily toward Chief Credit Officers/Chief
Financial Officers and their staff, and also might be of interest
to other senior management and directors.
This is a 30 to 35 minute presentation followed by Q&A.
Materials:
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Interagency Guidance on Concentrations
in Commercial Real Estate: Supervisory Expectations for
Sound Risk Management Practices
"Call The Fed" Audio Conference
March 13, 2007, 2:00–3:00 PDT
Financial institutions play an important role in providing
credit for business and real estate development. However, the
level of Commercial Real Estate (CRE) concentrations has increased
significantly in recent years and history has shown that CRE
markets can experience fairly rapid changes. The ability of
institutions to withstand difficult market conditions will
depend heavily on the adequacy of their risk management practices
and capital. Accordingly, the Federal Reserve and other banking
regulatory agencies recently issued interagency guidance to
remind institutions that strong risk management practices and
appropriate levels of capital are important elements of a sound
CRE lending program.
Credit Risk Coordinator John Kandaris discussed the interagency
guidance and the supervisory expectations for managing CRE
concentration risks. John addressed some of the misconceptions
about the guidance and shared examples of the range of
risk management practices currently in place.
This session is geared primarily towards chief credit
officers and risk management staff, and might also be of interest
to bank management and directors.
Materials:
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The Home Mortgage Disclosure
Act: Tips From the Field for Getting the Data Right
"Call The Fed" Audio Conference
November 29, 2006, 2:00-3:00 PST
Home Mortgage Disclosure Act (HMDA) data is used to evaluate both banks' fair
lending and Community Reinvestment Act performance. Submitting inaccurate data
can result in costly and time-consuming resubmissions and possibly even the
imposition of civil money penalties. Accordingly, it's essential that the data
be accurate. For this "Call the Fed" audio-conference, Ariane Smith,
Compliance Risk Coordinator, discussed key elements of HMDA compliance.
The session addressed regulatory requirements and common violations and
provided best practices to help ensure that the data is right the first time,
every time. Ariane also discussed ways to use the data to evaluate a bank's
own lending performance.
This session was geared primarily toward lending and fair lending compliance
staff and CRA Officers.
Materials:
- Presentation
materials (PDF - 176KB)
- Media-On-Demand audio presentation of the event
(Internet Explorer required)
- Windows
Media version (streaming 110K)
Please note: the file will be fully interactive only
after the it has finished downloading, which may take up
to five minutes.
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Authentication – "Do
you really know who is on the other end of that line?"
"Call The Fed" Audio Conference
August 16, 2006, 2:00-3:00 p.m. PDT
Are you sure that it is your bank customer communicating with your bank
or could someone be impersonating your customer? In these busy times, more
bank customers than ever before are using online banking and telephone
banking services for their retail and commercial transactions. As information
technology (IT) rapidly advances, IT controls have to regularly evolve
to remain effective. Are your e-banking controls still sufficient to protect
the confidentiality of your customers’ information and to ensure
the integrity of customer transactions?
For the August "Call the Fed" Audio-Conference, Operations Risk
Coordinator George Mori will discuss SR
letter 05-19, "Interagency Guidance on Authentication in an Internet
Banking Environment." Updated guidance was needed because single-factor
authentication exploitations frequently are used to commit account fraud
and identity theft, and could be used for money laundering. Institutions
are expected to comply by year-end 2006.
The presentation will discuss the need for risk-based assessments, customer
awareness, and reliable security measures to protect customers accessing
bank services remotely. The objective is to appropriately authenticate
customers conducting high-risk transactions. Although the updated guidance
focuses on risks and risk management techniques for internet banking, the
principles are applicable to all forms of electronic banking, including
telephone banking.
This presentation is primarily geared toward bank information security
officers, chief information officers, and senior management.
Materials:
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The
Discount Window—Overcoming the Stigma of "Lender
of Last Resort"
"Call The Fed" Audio Conference
May 2, 2006, 2:00-3:00 PDT
For the May "Call the Fed" audio
conference, Rick Miller, Discount Officer and Director of
Credit and Risk Management, will discuss the role of the
discount window under the primary credit facility introduced
in 2003. Primary credit established the discount window as
a contingent funding source for financial institutions of
all sizes and brought the discount window back to its historic
roots as a tool to advance monetary policy goals. Since the
introduction of primary credit, the Federal Reserve continues
to face the challenge of changing long held views by some
bankers and regulators that borrowing from the Fed is in
some way a negative reflection on the borrowing institution.
This "stigma" is a relic from the decades-long
role of the Federal Reserve as the "lender of last resort."
This session will be geared primarily
towards CFO's, funding managers, and senior federal and state
bank examiners.
Materials:
- Media-On-Demand audio presentation of
the event
(Internet Explorer required)
- Windows
Media version (streaming 110K)
Please note: the file will be fully interactive only after
it has finished downloading, which may take up to five minutes.
- Presentation
slides (PDF - 52KB)
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Cross-border Investment in
Asian Banks
"Call the Fed" Audio Conference
March 20, 2006, 2:00-3:00 PST
For the March "Call the Fed" Audio-Conference,
Dan Fineman, Senior Financial Analyst, will discuss foreign financial institutions'
rapidly growing investments in Asian banks. Dan will offer his views on the
boom in offshore investment in Chinese banks and comment on prospects for cross-border
investments of banks in India, Japan, Korea and Taiwan. The session will bring
you up-to-date on relevant developments in Asian banking, and aid you in making
strategic decisions in the region
This session will be geared primarily toward senior bank
executives and account officers with international business clients.
Materials:
- Media-On-Demand
audio presentation of the event (Internet Explorer required)
- Presentation
slides (PDF - 147KB)
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Flood Insurance: Keeping
Your Head Above Rising Compliance Waters
"Call the Fed" Audio Conference
November 30, 2005, 2:00-3:00 PST
Flood insurance violations are not just a compliance risk,
they can affect the bottom line since they expose a bank to the possible imposition
of civil money penalties. For this "Call the Fed" Audio-Conference,
Ariane Smith, Compliance Risk Coordinator, will discuss the key elements of
flood insurance compliance. The session will address regulatory requirements
and common violations and provide best practices to help you maintain a strong
program. This session will be geared primarily toward lending compliance staff.
Materials:
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BSA/AML:
Examination Findings & Expectations
"Call the Fed" Audio Conference
September 14, 2005, 2:00-3:00 PDT
For this "Call the Fed" audio
conference, Mary Hammond, BSA/AML Program Coordinator, will
address some of the key elements of an effective BSA/AML
compliance program and will provide insight into the examination
process, including highlights of the new Interagency BSA/AML
Examination Manual. The presentation will also give examples
of best practices and common weaknesses noted during recent
examinations. This presentation will be geared primarily
towards BSA compliance staff. However senior banking executives
may also find the information to be beneficial.
Materials:
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Interest Rate Risk Management: What Examiners Expect
"Call the Fed" Audio Conference
June 21, 2005, 2:00 - 3:00 PST
For this "Call the Fed" Audio Conference John Robeson,
Market and Liquidity Risk Coordinator, addressed examiners'
risk management expectations with regard
to IRR
management
and some
typical "red
flags" that examiners see that may result in examination
criticism. The conference included
a presentation covering the current rate environment
and risks.
Materials:
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New Bank Holding Company Rating System
"Call the Fed" Audio Conference
February 24, 2005, 2:00 - 3:00 PST
At this "Call the Fed" audio conference, Teresa
Curran, David Reiser, and Ken Szyndel introduced the new
Federal Reserve BHC rating system—"RFI/C (D)".
Materials:
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For more information on “Call the Fed” Audio Conferences,
please e-mail us or contact Janice Moulton at 213-683-2744.
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