Check Cashing

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Foundation for Accounting Education 2008
Banking Conference GOVERNANCE Patricia
Meadow First Deputy Superintendent of Banks New
York State Banking Department September 25, 2008
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• Patricia Meadow
• First Deputy Superintendent of Banks
• Patricia.Meadow_at_banking.state.ny.us
• (212) 709 -3502
• The information presented in this paper is for
  discussion purposes only. Any views expressed in
  this presentation are solely those of the author
  and are not intended to reflect those of the New
  York State Banking Department.

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GOVERNANCE

• Worthwhile to restate and review guiding
  principles of corporate governance and their
  applicability in todays financial climate.
• ? What are these principles?

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GOVERNANCE

• Duty of Board of Directors to select a CEO and to
  oversee the CEO and Senior Management in the
  competent and ethical operation of the
  institution on a day to day basis.

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GOVERNANCE

• ? How do you make decisions? Individual?
  Committee?
• ? Who is included in decision making
  process?
• ? Is decision making siloed?
• ? What is organizational structure like?
  Are roles well defined?
• ? Who are the stakeholders?

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GOVERNANCE

• Responsibility of management to operate
  institution in an effective and ethical manner.
  Senior management is expected to know how the
  institution earns its income and what risks it is
  undertaking in the course of carrying out its
  business.
• ? Accountability?
• ? Testing of risk assumptions?

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GOVERNANCE

• Responsibility of management, with the oversight
  of the board and its audit committee, to produce
  financial statements that fairly present the
  financial condition and results of the operation.
• ? Return to focus on asset quality
• ? Is off-balance sheet a reality?

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GOVERNANCE

• Responsibility of board and audit committee to
  engage an independent accounting firm to audit
  financial statements.
• Independent accounting firm should inform board,
  through audit committee, of any concerns it may
  have about
• ? The appropriateness of significant
  accounting treatments and/or business
  transactions that affect the fair presentation
  of the institutions financial condition
• ? Weaknesses in internal controls

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GOVERNANCE

• The application of these principles should
  advance the ability of US institutions to
  compete, create jobs, and generate economic
  growth.