FDIC's Supervisory Insights Summer Edition Focuses on Liquidity Risk and the Bank Secrecy Act — 2017-08-30

The Federal Deposit Insurance Corporation (FDIC) today issued the Summer 2017 issue of Supervisory Insights, which includes articles on liquidity risk trends at community banks and the Bank Secrecy Act (BSA) supervision program. “Community Bank Liquidity Risk: Trends and Observations from Recent Examinations” emphasizes the importance of liquidity risk management and describes contingency funding strategies to help community banks mitigate potential stress. “The Bank Secrecy Act: A Supervisory Update” provides an overview of the BSA/Anti-Money Laundering (AML) examination, discusses trends in supervision and enforcement, and includes examples of rare, but significant, failures identified by FDIC examiners in BSA/AML compliance programs. “We encourage management to consider their bank’s liquidity position and to be aware of potential funding issues that can arise in stress situations,” said Doreen R. Eberley, Director of the FDIC’s Division of Risk Management Supervision.