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The Education of a Bank Director: A Report of the American Association of Bank Directors

As an outside bank director, you probably have never worked for a bank or been trained to be a banker. Yet you are legally obligated to supervise both the bank and bankers who know a lot more than you will ever know about managing a bank.

What is it that you need to learn to meet your responsibilities, and how do you learn it?

Let's face it. You will never know as much as your CEO or Chief Lender about managing the bank. But don't worry.

The education you need is different from the education needed by your CEO, CFO or loan officer. You don't need to know how to make a loan as much as how to review the loan review reports you receive from independent third parties. You don't need to know how to manage assets and liabilities as much as how to oversee the implementation of the asset/liability management policy. You don't need to know how to audit a bank but you will need to know how to ask tough questions of management and the auditors, and read a bank balance sheet, income statement, and cash flow statement.

You can learn on your own.   But it is also very helpful to find the education you need from others to perform your responsibilities.

Where is this education available and how do you find it? This report will provide you some tips.

Download PDF: The Education of a Bank Director - Report of the AABD, April 29. 2014

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