AABD Forms Task Force on Bank Director Mitigation of Personal Liability and Reputational Risks
FOR IMMEDIATE RELEASE
May 20, 2021 – Washington, DC – The American Association of Bank Directors (AABD) today announced a Task Force on Bank Director Mitigation of Personal Liability and Reputational Risk.
The Task Force, consisting of more than 50 members, including former leaders and senior executives at the federal banking agencies, bank directors, bank CEOs and Chairpersons, bank counsel, and academics, will review laws, regulations, and bank regulatory policies and practices in order to recommend to AABD changes that should be made to minimize bank director liability and reputational risks consistent with safe and sound banking.
“For over 30 years, AABD has focused much of its efforts on seeking ways for bank directors to serve their banks without undue risk of personal liability and reputation,” said David Baris, AABD president. “This is an opportunity for a diverse group of highly qualified, independent experts in the field of bank regulation and corporate governance to contribute to the understanding of a subject that is so vital to current and prospective bank board members.”
Founded in 1989, the non-profit American Association of Bank Directors is the only trade group in the United States solely devoted to bank directors and their information, education, and advocacy needs. The Institute for Bank Director Education was established in 1993 as the educational arm of AABD. Its purpose is to act as a clearinghouse for education programs designed for bank and savings institution directors that support the nationally recognized AABD Director Certification Program and to offer a six-hour core course to all bank directors. AABD has published, among other publications, The Bank Director Regulatory Burden Report, the first public compilation of over 800 laws, regulations and federal banking agency guidance that impose various requirements on bank directors and their boards and board committee, now in its Second Edition; FDIC Director Suits: Lessons Learned, a guide for bank directors to be prepared for future recessions, in its Second Edition; Bank Director Standards of Care and Protection: A Fifty-State Survey; and Practical Handbook on Fair Lending for Bank Directors and Executive Officers, designed to provide straightforward advice on how bank boards can achieve effective oversight over fair lending risk and engage in best practices.