Founded in 1989 in the midst of the S&L crisis, the nonprofit American Association of Bank Directors (AABD) is devoted to serving the information, education, and advocacy needs of individual bank and savings institution directors.
Bank regulators expect bank and savings institution boards of directors to make informed decisions and to act independently to supervise their institution. One way for CEOs and their boards of directors to demonstrate that their boards are both informed and independent is through membership in AABD – the only banking trade association in the United States which exclusively serves individual directors rather than their institutions.
Bank directors are overburdened, often undercompensated, and under undue threat of personal liability. AABD advocates changes in banking laws and banking agency regulations, regulatory guidance, examinations, and practices that will allow bank directors to better meet their fiduciary duties without being subject to excessive regulatory burdens and unjustified risk of personal liability.
Advocacy: AABD reviews and responds to legislative, court and regulatory actions that impact bank directors. The Bank Director Regulatory Burden Study is a special report that recommends that the federal banking agencies and the U.S. Congress take steps to reduce the huge and ever-growing regulatory burdens imposed on bank directors.
Education: AABD encourages all bank directors to participate in AABD’s Bank Director Certification Program, which enables bank directors to obtain training on their duties and responsibilities and on oversight of risk management, lending, investments, ALCO, liquidity, audit, compensation and other relevant topics. In certain cases, banks whose directors participate in the AABD Bank Director Certification Program receive discounts and/or better coverage on their D&O insurance.
Information resources: AABD acts as a central clearinghouse, identifying important resources for AABD members derived from bank regulators, the U.S. Congress, national and state banking associations, banking publications and AABD sponsors. AABD provides analysis of developments affecting bank directors.
Other AABD services: AABD conducts independent corporate governance reviews and reviews identifying ways for bank boards of directors to minimize the risk of personal liability.
All bank directors who provide AABD with their contact information receive a complimentary Basic Membership. Banks whose directors are AABD Premium Members receive a complimentary copy of all AABD special reports and publications and may participate in the AABD Bank Director Certification Program.