Related Organizations

Board and Management Responsibilities

A bank’s board of directors’ primary duty is to protect the interests of the bank A bank’s use of related organizations to perform bank functions, provide products and services to customers, or otherwise achieve its strategic goals does not diminish the responsibility of the board of directors and management to ensure that both the relationships and the provision of products and services are conducted in a safe and sound manner and serve the bank’s best interests. A bank’s board and management can best meet this responsibility by implementing a corporate governance structure that provides for effective policies and controls systems over relationships with related organizations and that insulates the directors and management from pressure to subordinate the interests of the bank to those of the corporate parent or other related organizations.

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