Regulatory Alerts2023-10-11 | 2023-22421Guidelines Establishing Standards for Corporate Governance and Risk Management for Covered Institutions With Total Consolidated Assets of $10 Billion or More
The Federal Deposit Insurance Corporation proposes new corporate governance and risk management guidelines for FDIC-supervised banks, state-licensed foreign bank branches, and savings associations with consolidated assets of $10 billion or more. These guidelines, codified as Appendix C to 12 CFR part 364 and enforceable under Section 39 of the FDI Act, mandate enhanced board oversight, formalized risk governance frameworks, and a three-lines-of-defense model to mitigate operational and financial risks. By aligning with existing Office of the Comptroller of the Currency and Federal Reserve standards, the rules aim to strengthen the resilience of larger, more complex institutions and reduce the likelihood of costly failures.
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