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Financial Institution Letters
Supervisory
Insights Journal
Winter 2005 Issue Now Available |
FIL-120-2005
December 7, 2005 |
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The FDIC has announced the release of its Winter 2005 issue of Supervisory
Insights, a professional journal that promotes the practice of bank supervision. Topics of current focus for the bank regulatory community—such as banks' financial modeling, tighter security for Internet transactions, and banker insider misconduct—are highlighted in this issue. Supervisory
Insights is available on the FDIC's Web site at
http://www.fdic.gov/regulations/examinations/supervisory/insights/index.html.
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Highlights:
- The growing importance
of financial modeling has focused attention on a new source of risk – the potential for flawed information to
be introduced into the management decisionmaking process.
The article "Model
Governance" describes how strong governance procedures
can help minimize this risk and suggests areas examiners should
focus on when evaluating a bank’s model oversight, control and validation
programs.
- "Online Delivery of Banking Services: Making Consumers
Feel Secure" reviews key findings of an FDIC study that
evaluates identity authentication technologies. The article
also summarizes recently
issued interagency guidance requiring insured institutions
and service providers, as part of the development of
Internet banking products and
services, to design safeguards to protect sensitive customer
data.
- "Enforcement Actions against Individuals: Case Studies" focuses
on two case studies of insider misconduct – one involving embezzlement
and the other loan fraud. The article highlights weaknesses
in internal controls that contributed to the misconduct
and describes elements of
an effective internal audit program.
- Other articles describe the FDIC's Relationship Manager
Program and summarize the key results of the most recent
Basel II quantitative impact study.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
Related Topics:
Model governance
Identity theft
Enforcement actions
Relationship Manager Program
Basel II quantitative impact study
Attachment:
Contact:
Steven D. Fritts, Executive Editor (202-898-3723, sfritts@fdic.gov)
Note:
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/2005/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC FILs may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200).
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