Bank Director's Training | Reference View

		Call To Order Financial Report Harvard Westerman Loan Sam Wilson Loan Allowance for Loan Loss Asset & Liability Committee Forensic Report on Fraud
	Reference View

Course Topics	Practice Exercises & Try This at Your Bank Exercises	Meeting Materials (Meeting Materials content may include case study material for Insights Bank and Trust, examples, and supporting lessons for the main part of the course.)
1. The Call to Order - Your Job As A Bank Director
What You Need to Know Basic Explanation Join the Meeting An Invitation to Serve Meet the Board Board and Director Responsibilities Understanding Banks and Bank Regulations Practice Review the Reports Your Meeting Materials Getting Organized The Board's Response Advice from An Outside Director One Director's Story Supervisory Actions Attributes of a Good Bank Director Practice	Your Orientation A History in Minutes Your Bank's Supervisor Board Basics for your Bank Red Flags for the Board of Directors Why Boards Have Committees Your Board's Committees Supervisory Actions	Ten Commandments for Directors Ageless Advice from a Bank Supervisor The Balance Sheet The Income Statement Minutes from Previous Board Meeting Bank Director's Oath Important Corporate Documents Director Responsibilities Common Board Committees Sample Director Self-Assessment Corporate Governance: Internal Players Corporate Governance: Supervisory Agencies Corporate Governance: 10 Best Practices Red Flags for the Board of Directors Banking Supervision D&O Liability Insurance Effective Committee Practices FDIC Lawsuits Against Directors Indemnification Regulation Formal Actions against a Bank Director Responsibilities
2. Financial Report - Evaluating Financial Performance
What You Need to Know Basic Explanation Join the Meeting The "Visions for Success" Program Watch the Video Transcript Types of Risk Sources of Risk Review the Reports Monitoring Portfolio Risk Basic Financial Reports Financial Information on the Web The Board's Response Options for Reducing Risk Management Oversight Policies and Procedures Risk Monitoring Internal Controls	Practice Exercises Identifying Risk What types of risk is Insights Bank facing? Evaluating the "Visions for Success" Program Quick Quiz: Portfolio Risk Identify Sources of Risk Derivation of Net Income Your Risk Control Environment Review Your Bank's UBPR	The Balance Sheet The Income Statement Basic Ratio Analysis Making Financial Comparisons Minutes from Previous Board Meeting Basic Elements of Policies
3. The Harvard Westerman Loan - A Large Loan that may Present Policy Exceptions (Credit Risk)
What You Need to Know Basic Explanation Join the Meeting The Harvard Westerman Loan Proposal Watch the Video Transcript The Consequences of Credit Risk Small Bank Example Credit Quality vs. Bank Income Review the Reports Making Credit Decisions Lending Limits Summary Loan Reports Detailed Loan Reports The Watch List Report The Board's Response Response to the Harvard Westerman Loan Proposal Watch the Video Transcript Common Elements of Loan Policies Policy Exceptions Creating an Effective Loan Policy	Practice Exercises Check for Red Flags of Lending in the Harvard Westerman Proposal Evaluate the Harvard Westerman Loan Proposal using the "5 P's" of Credit Quick Quiz: Loan Policy What Requires Board Approval? The Cost of Mistakes in Lending Large Loan Policies Loan Grades Real Estate as Collateral Common Practices at Small Banks Loan Policy Exceptions Your Loan Policy	Harvard Westerman Loan Proposal Poor Lending Practices The Credit Checklist Asset Quality Assessments Loan Policy Guidelines
4. The Sam Wilson Loan - Regulatory Issues in Lending
What You Need to Know Basic Explanation Join the Meeting Sam Wilson Loan Proposal Watch the Video Transcript Review the Reports The Loan Presentation Sheet Evaluate the Credit Risk Consider the Applicable Regulations The Board's Response Response to The Sam Wilson Loan Proposal Watch the Video Transcript	Practice Exercises Use the Credit Checklist to evaluate the Sam Wilson Proposal	Sam Wilson Loan Presentation Sheet The Credit Checklist Loan Policy Guidelines Regulation B Regulation W Regulation O
5. The Allowance for Loan and Lease Losses
What You Need to Know Basic Explanation Join the Meeting Insights' Allowance for Loan and Lease Losses Watch the Video Transcript The Allowance for Loan and Lease Losses Regulatory Guidance on the ALLL Components of an Adequate Reserve Estimating an Adequate Reserve Review the Reports ALLL Reports FAS 114 Analysis FAS 5 Analysis The Board's Response Response to the Allowance for Loan and Lease Losses Watch the Video Transcript Is There an Adequate Reserve? ALLL Written Policies and Procedures	Practice Exercises Identifying Impaired Loans Increasing the Provision for Loan and Lease Losses The Effect of Previously Charged-off Loans on the ALLL Balance Self Check: Insights' ALLL What the Minutes Can Tell You Determining an Adequate Reserve Disagreements Among Board Members	ALLL Policy Guidelines Asset Quality Assessments Basic Ratio Analysis Making Financial Comparisons
6. The Asset and Liability Committee Report - Market and Liquidity Risk
What You Need to Know Basic Explanation Join the Meeting The Asset and Liability Committee Report Watch the Video Transcript Factors That Affect Bank Liquidity Sources of Market Risk Review the Reports Monitoring Liquidity and Market Risk Monitoring Bank Liquidity Financial Modeling Gap Analysis Earnings at Risk (EAR) Models Practice The Board's Response Response to the Asset and Liability Committee Report Watch the Video Transcript Liquidity and Market Risk Management Managing Liquidity Through Assets and Liabilities Liquidity Policy The Investment Policy Using Reports to Manage Liquidity and Market Risk Practice	Practice Exercises Insights’ Liquidity Position: Use the Balance Sheet Market Risk Quick Quiz: Market Risk Insights' Liquidity Position: Summary Ratios Gap Analysis Gap Analysis for Insights Bank and Trust EAR report for Insights Bank and Trust Quiz 1 Quiz 2 Quiz 3 What do you know about the asset and liability management at your bank? Your Bank’s Funding Sources Capital Adequacy Your Bank’s Liquidity Market Risk The Liquidity Ratio Summary Gap Analysis EAR Models Available-for-Sale and Held-to-Maturity Securities Liquidity Policy Compliance with Liquidity and Investment Policies Market Risk Policy Market Risk Reports Management Response to Market Risk	Basic Investment Concepts for Banks ALCO Committee Minutes Capital Adequacy Policy Guidelines
7. Forensic Report on Fraud
What You Need to Know Basic Explanation Join the Meeting Fraud at the Bank Operational Risk Defined Sources of Operational Risk Practice/Exercises Review the Reports Monitoring Operational Risk Practice The Board's Response Response to the Forensic Accounting Report Watch the Video Transcript The Risk Management Process Business Continuity Plans Final Thoughts Practice	Practice Exercises What is Operational Risk? Monitoring Operational Risk Mr. Bent's Forensic Accounting Report Information Technology Risk Payment Systems Risk: Check 21 Payment Systems Risk: ATM Payment Systems Risk: ACH Payment Systems Risk: EFT Bank Operations Risk Financial Reporting Correspondent Bank Accounts Fixed Assets Insurance Other Assets and Liabilities Loan Operations Suspicious Activity Reports	Information Technology Risk Payment Systems Risk Bank Operations Risk Business Continuity Planning Key Risk Indicators (KRIs) Risk Assessment Suspicious Activity Reports (SARs)
8. Adjourn - Send us your feedback
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9. Appendix - Spotlight on the Audit Committee
Spotlight on the Audit Committee	Your Audit Committee's Charter Red Flags for your Audit Committee	Evaluating the Audit Function External Auditor Responsibilities The Internal Audit Function Defining "Financial Expert" Reading Audit Reports Red Flags for the Audit Committee Sample Audit Plan Sample Audit Committee Charter Audit Committee: Required Discussions and Reports Prohibited Nonaudit Services Requirements for Financial Statements Sample Resources Report

Resources

The Federal Reserve Bank of Kansas City has published the following books. Contact your district Reserve Bank to obtain a free copy:

Basics for Bank Directors (112 page pdf). Written by Forest E. Myers

Basics for Bank Directors is structured around the CAMELS rating system, Capital, Asset quality, Management, Earnings, Liquidity and Sensitivity to Market risk. It presents basic matters to review under each of the rating components and poses questions you might ask if you see problems evolving in these areas.

Banking Regulation: Its Purposes, Implementation and Effects (281 page pdf). Written by Kenneth Spong.

Banking Regulation provides basic information on the U.S. bank regulatory framework and describes in layman terms the laws and regulations under which banks operate and why we have them.