If your bank is nearing an asset milestone, you should plan ahead as regulatory requirements can disrupt operations and strain resources.
If your bank is approaching the $500 million or $1 billion asset milestones, it’s critical to plan ahead. Without planning, additional regulatory requirements can disrupt operations and strain resources.
The Federal Deposit Insurance Corporation Improvement Act (FDICIA) imposes specific requirements on banks with assets over $500 million and $1 billion. As banks grow, reaching these specific asset thresholds bring new challenges.
Banks nearing these thresholds should start preparing early, including:
- Engaging in balance sheet audits,
- Developing internal control frameworks,
- Identifying independence issues, and
- Adjusting audit committee composition.
Setting the tone for compliance, testing controls, and providing consistent methodology can be challenging, but with proper planning, it shouldn’t inhibit banks’ strategic goals and growth trajectory.
Learn more about what to expect when your bank reaches $500 million or $1 billion in assets during our complimentary webinar June 17. Timely planning and communication can help mitigate these issues.