Banks are well aware of the burden of regulatory scrutiny. Unlike investment advisers or broker-dealers, they are assigned principal regulators who examine them each and every year for prolonged periods of time. Many banks experience multiple regulatory examinations in a given year. Additionally, bank examination teams consist of thoughtful and experienced veterans who are not only familiar with the institutions they examine, but have had the benefit of examining numerous institutions of a similar nature and know exactly where to look to find problems.
Small and mid-sized banks do not have large compliance and risk management teams to keep up with the regulatory onslaught. Moreover, regulations tend to be written with the larger banks in mind, because many of the risks and issues emanate from the larger institutions. This usually puts the smaller and mid-sized banking institutions in the difficult position of inheriting overwhelming regulatory regimes that are aimed at their larger siblings, without the resources or much of the lobbying fire-power to tone down these regulations. To be sure, the regulators do make significant efforts to distinguish between they type of institutions that are subject to their regulations, however, this is a not a precise science.
The team of Alexander Church is proficient in the art of exam management. Because regulators can enter an institution at any time, we will work with your legal and compliance team to establish the processes, controls and confidence necessary to excel in regulatory exams. This will in turn build the necessary confidence in your depositors, shareholders and customers to grow your business and make you stand out among others as a safe and reliable financial institution.
We pride ourselves in implementation. We understand that CCOs and their staff have an incredible burden already and we come equipped with not only our understanding of the issue, but a pragmatic approach that will provide a solution that is ready to implement and sensible to monitor. Alexander Church comes from a world where banking ratings matter and fines are not just a cost of doing business.