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Bank regulatory expectations for bank directors have never been higher.  Regulatory burdens continue to multiply and the risk of personal liability is real.  Competitive and strategic challenges to their institutions require more of bank directors.

The best way for bank directors to satisfy the demands made on them by the regulators and market forces is through obtaining the knowledge and insights necessary to meet those challenges.

The OCC’s 2014 rule on heightened expectations on risk management requires directors of large ($50 billion and more)  national and federal savings banks to obtain formal training. This is the first time that federal banking agency rules have required bank boards to obtain formal training and history tells us that what starts with large banks often filters down to smaller banks. The formal training requirement may not show up immediately in any rule or even a guideline, but its effect may be felt during examinations and enforcement actions by the federal banking agencies.

That is why the nationally-recognized Institute for Bank Director Education, established by AABD in 1992 to create and support the Bank Director Certification Program, is more timely than ever.

The Certification Program is designed specifically for bank directors.  Bank directors are not CFOs or CLOs.  They are predominately outside directors – laypersons who have no specific backgrounds in banking.  Their training needs to perform oversight responsibilities are distinct from the training needs of their bank officers.

  • The Program works with banks whose board members are AABD members to help establish a tailor-made formal training process.
  • The Program consists of a core course and supplemental courses.
  • The core course is a 6 hour course presented at the bank’s location and conducted by two qualified instructors affiliated with AABD.
  • Supplemental courses can include a variety of subjects chosen by the bank board or its directors to fit the needs of individual directors. AABD reviews and approves the subjects and providers.
  • AABD issues Certificates of Completion and Maintenance. The Certificate of Completion is issued during the first year after the directors participate in the core course and six hours of supplemental courses. The Certificate of Maintenance is issued every year in which the director participates in at least 6 hours of supplemental course work.
  • The banks whose directors participate in the Certification Program may qualify for discounts and/or better coverage on their D&O insurance policy.  AmTrust, a respected insurance carrier and AABD Sponsor, offers up to a 15% credit on D&O insurance to banks whose directors participate in the Certification Program.
  • Banks whose directors seek formal training to meet their responsibilities are more likely to be viewed positively by the banking agencies.

To learn more about the Bank Director Certification Program, contact David Baris, President of AABD at [email protected].

Institute for Bank Director Education

Core Course Components

Current course list (To be updated)

The Education of a Bank Director