Regulatory Alerts2017-01-24
Enforcement Action Policy DI-02-2015
The Louisiana Office of Financial Institutions issued Policy DI-02-2015 to standardize the issuance, implementation, and monitoring of informal and formal enforcement actions for state-chartered banks, thrifts, credit unions, holding companies, and trust companies. The policy mandates that institutions with CAMELS/CAMEL composite ratings of 3, 4, or 5 face targeted corrective measures, typically requiring a Board Resolution or Memorandum of Understanding for rating 3 and formal consent orders or cease-and-desist directives for ratings 4 or 5. It further establishes joint issuance protocols with federal regulators, detailed board meeting procedures for stipulation or administrative hearings, and structured monitoring through progress reports and on-site visitations to ensure timely financial recovery.